Ceylon Tobacco Company PLC (CTC)
Ceylon Tobacco Company PLC (CTC) holds the monopoly of cigarette manufacturing and sales in Sri Lanka. It is a subsidiary of British American Tobacco (BAT), which owned 84.13% of the shares in 2017. Even though BAT started its operations in Sri Lanka in 1904-1911 period, CTC was only established as a company in 1932.
CTC is engaged in the complete manufacturing process of cigarettes in Sri Lanka, from tobacco cultivation to cigarette production. CTC owns 99% of the market with the remaining 1% comprising of imported cigarettes. Almost 100% of the tobacco used for cigarette manufacturing in Sri Lanka is cultivated in the country, which accounted for approximately 3000 tons of tobacco in 2014. CTC also exports its manufactured cigarettes, which contributes approximately 1% to its overall annual revenue. Headquartered in Colombo, CTC operates via two factories; the Colombo Factory and the Green Leaf Threshing Plant in Kandy.
The CTC cigarette brands include John Player Gold Leaf (JPGL), Dunhill, Benson & Hedges and Capstan.
Directors & Employees: Past and Present
CTC is managed by a Board of Directors and an Executive Committee. In 2016, Board of Directors, headed by the Chairman, consisted of six Directors, of which 4 were Non-Executive Directors. The Executive Committee headed by the Chief Executive Officer also had seven members. Susantha Ratnayake was appointed the Chairman of CTC in 2013 and Michael Koest as the Chief Executive Officer/Managing Director in 2016. A complete list of CTC's Board of Directors and the Executive Committee members can be found on the CTC website.
In 2016, the number of permanent employees of CTC was 273, with an employee turnover rate of 7.3%. The reported revenue per employee was LKR Million 445 whereas the reported profit per employee was LKR Million 46.
Details on past or present CTC employees and Directors listed below can be found in the respective TobaccoUnmasked pages:
Up to 2017, CTC owned the following subsidiaries:
- Advent International
- CTC Briquettes Limited
- CTC Eagle
- CTC Exports Limited
- CTC Foliage Limited
- CTC Leaf Exports Limited
- Outreach Projects (Guarantee) Limited
- CTC Services Limited
As in 31st December 2016, the number of shareholders of the CTC were 3431. It was a reduction by 185 from the number in 2015. Following were the 20 largest shareholders (in the descending order):
British American Tobacco Holdings (Sri Lanka) BV | FTR Holdings SA | Pershing LLL SA Averbach Grauson & Co. | HSBC INTL NOM LTD - SSBT-BMO Investments 11 (Ireland) | HSBC INTL NOM LTD-State Street London | Northern Trust Company S/A - Coupland Cardiff Funds PLC | RBC Investor Services Bank-COELI SICAV | HSBC INTL NOM LTD-JPMCB-Long Term Economic Investment Fund | Jasbinderjit Kaur Piara Singh | Neesha Harnam | Harnam Holdings SDN BHD | HSBC INTL NOM LTD-SSBT Frank Russel Trust Company | HSBC INTL NOM Ltd - SSBT-Deutsche Bank | Bank of Ceylon | Bank of Ceylon No 1 Account | HSBC INTL NOM - UBS AG Zurich | HSBC INTL NOM LTD-JPMCB-New Emeging Markets | HSBC INTL NOM Ltd - UBS AG – Singapore | HSBC INTL NOM LTD-SSBT Multipartner SICAV-WMP | HSBC INTL NOM Ltd-Parametric Emerging Markets | HSBC INTL NOM LTD-BMO LGM Frontier Markets Equity Fund
They collectively owned 94.71% of shares. Except for Bank of Ceylon, all the others were foreign investors.
Individuals and institutions with affiliations to CTC are detailed in the pages in following categories:
- Commissioned or Sponsored – Individuals or institutions commissioned or sponsored by CTC
- Consultants – Individuals or institutions with a history of provision of consultancy services to CTC
- Indirect Links – Individuals or institutions sponsored or commissioned by institutions directly linked to CTC
- Institutions with Mutual Associates - Institutions in which Directors/employees of CTC are Directors/employees/members
- Institutions Governed by Tobacco Industry – Institutions in which executive positions are assigned to CTC employees or directors as a representative of CTC
CTC’s activities in Sri Lanka are detailed in the pages in following catagories:
- Corporate Social Investments - activities themed as ‘Corporate Social Responsibility’ and sponsorships of social events/activities by the CTC or its employees (using the company name and/or the title)
- Influencing Policy – attempts to influence policies and litigations against the government
- Marketing and Promotions - activities to promote products, brands or smoking habit, marketing strategies and activities to promote the image of the company
- Tobacco Cultivation – influences and interventions on tobacco farming and famers
- Tobacco Tax and Pricing Related Issues – responses to tobacco tax policies and increase of cigarette price
- Liaising with Government Officials – collaborating with government officials to influence policies or implement CTC activities
- Involvement in Illicit Tobacco Trade – influences and interventions related to tobacco smuggling and illicit tobacco trade
- Tobacco Industry Arguments – arguments against tobacco control measures and the science behind them
- Tobacco Industry Responses – responses for accusations/queries from the authorities/scientists/public or for tobacco control policies/actions
Tobacco Unmasked Resources
- Ceylon Tobacco Company PLC. Annual Report 2016, 2017, accessed May 2017
- British American Tobacco Website. Our history – a timeline, 2017, accessed May 2017
- Colombo Stock Exchange. Ceylon Tobacco Company PLC (CTC.N0000), 2017, accessed May 2017
- N.Arunathilake, M.Opatha, The Economics of Tobacco in Sri Lanka., Economics of Tobacco Control Paper No. 12, Tobacco Free Initiative, World Health Organization, 2003, accessed November 2016
- Sri Lanka Excise Department, Sri Lanka Excise Department Performance Report 2014, Colombo: Sri Lanka Excise Department, 2015, accessed November 2016