News and Events

To mention a few important events in which the IRC offered its Strategic Consultancy and Expertise to successfully complete the Turnaround and Restructuring Process:

Restructuring of Shield Medical (Pvt.) Ltd

The Shield Medical (Pvt.) Ltd. is a trading Company dealing with medical and surgical items and supply to local hospitals both in the Government and private sectors.  They have been one of the leading trading Companies doing very well but due to mismanagement and unprecedented competition in the market, they have been little by little pushed towards loss of business and funding constraints to execute their orders in hand.  They were looking for an investor to either acquire fully or a merger.  They approached the IRC (Pvt.) Ltd at the right time and we took over the Company to restructure it to an acceptable and manageable level for acquisition or a merger.


National Paper Mills Corporation

The Industrial Restructuring Consultancy (Pvt) Ltd. (IRC) has agreed to assist few foreign companies to take over this Project for restructuring. Negotiations are underway with two parties, one from China and the other from India to restructure the above Project.


Restructuring of Tri Star Garment Industry

Proposed Joint-Venture Partnership:

Tri Star Apparels (pvt) Ltd sought our assistance to restructure and transform into a viable venture.  Having studied it current position, we made some radical but beneficial suggestions to the management of Tri Star before undertaking the restructuring exercise.   We suggested two proposals knowing its current position of Tri Star, one being a Management Buy-out (MBO) and the other being a Join-venture Partner with the controlling share with the investor.  They agreed to our second proposal. We undertook the Project and are now in the process of finalizing the negotiation for the investor to take over the Organization with current assets and liabilities with no payment whatsoever to Tri Star but awarding a 20 per cent share.   


Microcells (Pvt.) Ltd.

 Microcells (Pvt.) a BOI Company that manufactures Industrial Rubber Mat for 100 per cent to the US and EU markets. It is a profit generating enterprise but the Management feels that a more efficient and effective MBO is to be installed in order to enhance its economic efficiency and productivity. The Company therefore approached the IRC for the purpose and having studied the operational and accounting performance of the Co., the IRC recommended three options through a restructuring process. Total acquisition/sale appeared to be hurting the feelings of the Management, a JV Partnership was appreciated and a JV Partnership with 20 per cent shares to be with the present Management seemed more attractive and acceptable. 


Sisira Builders

Sisira Builders (Pvt.) Ltd. had been a Construction Company of 32 years experience.  It was awarded C 1 in Construction and C 3 in Water Projects by ICTAD. Their record of performance had been held in high esteem by its clients, mostly Banks, Government Institutions, Private Parties,  etc. for their completing the work before targets.  They had been very much involved in depending on outsourcing necessary machinery and other important requirements. However, they had not been making profits in the recent past due to lack of working capital and poor investments. This type of activities kept on narrowing their profit margin and ultimately they resorted to do subcontracts for their survival.  To its credit there were no arrears of payment of EPF, Income Tax, etc.


Link Engineering

Link Engineering (Pvt.) Ltd.  had been engaged in the Construction Industry of Sri Lanka for more than 25 years and was awarded C 1 Grade in Construction by ICTAD. In the early half of its lifespan it was the leading Construction Contractor of the country. During this early period the Company undertook and completed some of the landmark construction projects in Sri Lanka. Once achieving this lead position the company diversified and invested into areas totally outside the core business and all the diversified projects were unsuccessful and had to be sold at a loss. This situation caused a heavy drain on its finances which curtailed its capacity as a leading Construction Contractor and lost its lead position in the industry. For the last seven to eight years it executed a recovery plan and presently is in need of fresh infusion of capital to reestablish itself and regain its lost position in the industry.


Dairy Farm Project of Browns Group:

Browns-LogoBrowns Group has sought the assistance of IRC (Pvt) Ltd. In the form of consultancy  to embark on a Dairy Farm Project in the Kurunegala District. The extent of land required for the project is 500 acres in extent with facilities conforming to the Project.  


Restructuring Exercise:


Restructuring of Samson & Co. (Pvt.) Ltd, one time a leading Garment Industry, fell sick  mainly due to over-gearing and unsettled liability to its Bank. This Industry sought the assistance of the IRC (Pvt.) Ltd. ,  which undertook to restructure it and make it a viable venture.


Bailing-out Exercise:


Uni-walkers Packaging Industry, a well established and profit making Company suddenly fell sick due to mis-management and  lack of working capital -   IRC undertook  the task to turnaround Uni-Walkers,  utilizing its expertise along with the  active participation of Uni-Walkers,  and successfully negotiated with the  Edna Group of Companies, a low-profile Blue-chip Company,  to bail out Uni-Wakers Packaging Industry.   


Joint-venture Partnership:


A Partnership between Lankem Ceylon Plc and Weligama Bay Beach Hotel was undertaken under a restructuring programme by IRC.  Provided strategic consultancy, co-ordination and negotiation to successfully complete the above Partnership.   Accordingly Lankem Ceylon Plc took over 55 per cent of shares and the management of the Hotel,


Cost-cutting Exercise:

NISOL1NISOL (Corrugated Packaging Industry) located in Wattala was successfully restructured by IRC to generate  an Incremental Profit with the available resources of NISOL through an intensive strategic  process of cutting down overheads, eliminating waste, improving procurement efficiency on raw materials, improving material management efficiency and also improving productivity. 


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