Agribusiness

Our Agribusiness segment comprises cultivation, agricultural processing, and dairy farming. Sunshine’s signature palm oil venture, operated by our subsidiary Watawala Plantations PLC, a listed entity of its own, remains one of the only businesses in South Asia to hold Roundtable on Sustainable Palm Oil (RSPO) certification. Palm oil remains the primary revenue contributor for Agribusiness, though the segment also holds a substantial dairy interest as well as a number of minor crops that also contribute to Group revenue, albeit at a smaller scale.

Overview

As of March 2025, Agribusiness is the Group’s third largest revenue stream, contributing Rs. 7.9 Bn. The segment comprises two primary upstream operations: oil palm cultivation and dairy farming, both of which had been thoroughly tested over the past several years, virtually brought to a near standstill by multiple crises: from a nationwide ban on inorganic fertiliser to a crippling feed shortage in the wake of the 2022 economic meltdown.

PALM OIL

Watawala Plantations PLC

Upstream plantation and mill selling crude palm oil to refiners and local brands.

DAIRY FARMING

Lonach Dairy Ltd.

Upstream farm with 750 milking cows and an automated milking parlour selling fresh milk at the farm gate to local brands

Having weathered these back-to-back storms, among a number of other issues, the Agribusiness segment saw a welcome rebound in 2023, recording exceptional recovery, a momentum that continued during the 2024-25 financial year. Both business units recorded measurable improvements in operational stability, supported by targeted agronomic interventions, cost control, and adaptive strategy, setting the stage for sustainable growth.

Advancing sustainability

It bears emphasis that these outcomes were not incidental but the result of a Group-wide calculated push to align with global best practices. Watawala’s own environmental agenda, informed by a commitment to sustainability, is facilitated through rigorous environmental protocols. These include red-banding of trees near waterways, stream buffer monitoring, and the systematic use of treated wastewater and empty fruit bunches in place of chemical fertiliser. Greenhouse gas emissions are also tracked, and fossil fuel use is minimised through a biomass-driven energy model that repurposes mill byproducts into both heat and electricity.

Social integration also figures prominently in our pursuit of sustainable growth. From transport for schoolchildren and medical outreach to the maintenance of public infrastructure and income-generation opportunities for local villagers, Watawala Plantations’ social footprint extends far beyond compliance, with many of these efforts leading to a reduced risk of community tensions that may lead to strikes or protests.