Ceylon Tobacco Company PLC (CTC)

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Ceylon Tobacco Company (CTC) Home Page as of 2017 July

Background

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.[1] Even though BAT started its operations in Sri Lanka in 1904-1911 period, CTC was only established as a company in 1932.[2][3]

CTC is engaged in the complete manufacturing process of cigarettes in Sri Lanka, from tobacco cultivation to cigarette production.[1] CTC owns 99% of the market with the remaining 1% comprising of imported cigarettes.[4] 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.[5] 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.[1]

The CTC cigarette brands include John Player Gold Leaf (JPGL), Dunhill, Benson & Hedges and Capstan.[1]

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.[1] 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.[1]

Details on past or present CTC employees and Directors listed below can be found in the respective TobaccoUnmasked pages:

Emma Ridley | Dinesh Weerakkody | Denis Perera | Ken Balendra | Lakmali Nanayakkara | Michael Koest | Ramesh Nanayakkara | Rukshan Gunatilaka | Stanley Wanigasekara | Susantha Ratnayake

Subsidiaries

Up to 2017, CTC owned the following subsidiaries:

Investors

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):[1]

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.[1]

Affiliations

Individuals and institutions with affiliations to CTC are detailed in the pages in following categories:

Activities

CTC’s activities in Sri Lanka are detailed in the pages in following catagories:

2018 Highlights

Community Protests at the AGM

In 2018 April a protest was held in front of the CTC headquarters at the day of the Annual General Meeting (AGM), commemorating, with an all-faith service, the Sri Lankans who lost their lives due to cigarette smoking (Image 2). The protesters appealed to the investors to stop investing in a business that kills its consumers (Image 3).[6][7] A similar protest was reported in 2016.[8]

Image 02: A protest at the CTC headquarters in its AGM held on April 2018[6]
Image 03: Ada newspaper reporting the protest[7]

CTC Punished for Delaying Court Procedures

In June 2018, Supreme Court of Sri Lanka ordered CTC to pay a plaintiff, who had filed a case for damages against them, an amount of LKR 400,000 (USD 2,500) as legal costs for deliberately delaying the court case at a lower court for 12 years.[9] The court case in question was initiated by a widow of a smoker seeking compensation for the lung cancer related death of her husband.[10][11] Please see our page Ceylon Tobacco Prosecuted for a Smoker’s Death for more details.

Tobacco Unmasked Resources

Relevant Link

Ceylon Tobacacco Company’s website

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Ceylon Tobacco Company PLC. Annual Report 2016, 2017, accessed May 2017
  2. British American Tobacco Website. Our history – a timeline, 2017, accessed May 2017
  3. Colombo Stock Exchange. Ceylon Tobacco Company PLC (CTC.N0000), 2017, accessed May 2017
  4. 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
  5. Sri Lanka Excise Department, Sri Lanka Excise Department Performance Report 2014, Colombo: Sri Lanka Excise Department, 2015, accessed November 2016
  6. 6.0 6.1 Alcohol and Drug Information Centre (ADIC) Sri Lanka. Facebook page, 2018, accessed June 2018
  7. 7.0 7.1 Ada. සිගරට් භාවිතයෙන් මියගිය පුද්ගලයන් සිහිකරමින් මතක වස්ත්‍ර පූජාවක් සහ මහා පාංශුකූල පිංකමක්. 27 April 2018
  8. SN Ganewaththa. දුම් බී මියගිය අය සිහිකර මතක වස්ත්‍ර පූජා කර පාංශු කූලය දෙති, Divayina, 04 April 2016, accessed June 2018
  9. Daily Mirror. Delaying trial for 12 years: SC orders CTC to pay widow Rs.400,000 as costs 16th June 2018, accessed June 2018
  10. Supreme Court of Sri Lanka. S.C. Appeal 102/2009, 14th June 2018, accessed June 2018
  11. S Samarasinghe. Tobacco faces smoking death case, Nation.lk, 2nd November 2008, accessed June 2018