Spearheaded by EFL Global, a world-leading service-driven logistics player ensuring safe, transparent, and on-time delivery of millions of products to our customers, every single day.
Overview
Expolanka’s leadership in global logistics is spearheaded by EFL Global, a recognised leader in freight forwarding that operates in 39 countries. EFL offers a wide array of services including air and ocean freight, warehousing, drayage, customs brokerage, transloading, CFS operations and more. Positioned as a middle-mile logistics specialist and backed by an expansive network, innovative offering, and commitment to reliability, the Company has gained the confidence of top brands in key destination markets. Business is concentrated in the North America Trade Lane, with a growing network presence in Asia, Africa, the Middle East, and Central America.
EFL 3PL is the third-party logistics arm of Expolanka Holdings offering a range of end-to-end services including warehousing, and related services to their clientele. Leveraging a strategic network of distribution centers and strong capacity within Sri Lanka, the Company’s service offering is now expanding internationally.
Oki Doki (Pvt) Ltd is a well-established, technology-driven, asset-lite, transportation solutions company. The Company manages the largest digitally operated fleet in Sri Lanka and services major exporters and retailers in the Country. Building on long-term partnerships and Group synergies, the Company is venturing overseas.
Expolanka Airline Management (EAM) is a top-tier regional General Sales Agent (GSA), representing over 16 leading international airlines in over 10 countries. Positioned as a one-stop-shop airline solutions company, EAM offers a wide range of GSA solutions to its airline principles. Industry acumen, wide service portfolio, experienced management team, and strong alliances, together with the backing of the parent Company, underscore EAM’s value proposition.
Financial highlights
| FY 2022/23 | FY 2021/22 | % change | ||
| Revenue (Rs. Mn.) | 537,669 | 689,723 | -22 |  |
| Gross profit (Rs. Mn.) | 102,352 | 121,016 | -15 | |
| Earnings before interest and taxes (EBIT) (Rs. Mn.) | 37,851 | 85,800 | -56 | |
| Net finance cost (Rs. Mn.) | (1,145) | (1,106) | 4 | |
| Profit before tax (Rs. Mn.) | 36,706 | 84,694 | -57 | |
| Profit after tax | 29,429 | 71,901 | -59 | |
| Total assets (Rs. Mn.) | 176,641 | 284,910 | -38 | |
| Total equity (Rs. Mn.) | 114,867 | 118,313 | -3 | |
| Total debt (Rs. Mn.) | 28,735 | 88,124 | -67 |  |
| Capital employed (Rs. Mn.) | 143,602 | 206,437 | -30 | |
| Return on equity (%) | 25.2% | 99.3% | -75 | |
| Return on capital employed (%) | 17.5% | 58.6% | -70 | |
Operating context
Global economy
Slowdown of the global economy continued during the year under review, with growth estimated at approximately 3.4% in 2022. While reopening of borders in major economies, such as China, contributed to a rebound later in the financial year, global GDP growth remained weaker than expected. Sluggish conditions are expected to continue during the next financial year with advanced economies anticipated to bear the brunt of growth deceleration. Inflationary pressures and monetary tightening from major central banks served to impede growth during the year under review. Subdued forecasts from the International Monetary Fund project a decline to 2.8% growth rate in 2023, before an uptick to 3.0% growth the following year.
Stubbornly high inflation in North America remains a challenge and is stifling demand. The US Federal Reserve continuously raised key interest rates to contain inflation during the year and has signaled further rate hikes. While supply-chain bottlenecks have eased, wider geopolitical tensions including the ongoing war in Ukraine, China - US competition, and tensions between China and Taiwan have contributed to overall uncertainties. However, ensuing market conditions are expected to be a temporary point-in-time issue impacting the entire logistics industry; rather than a structural economic shift.
The global outlook for 2023 shows some improvement as energy and food prices are expected to see a decline, leading to reduced headline inflation across most countries. Soft market conditions that prevailed for the majority of the period under are expected to remain in the short-term. Easing of inflation rates toward the end of the financial year are a positive sign, even though markets are still to recover. Long-term economic stressors such as weakened investment, increased fragmentation of the global economy, lagging productivity growth, and high sovereign debt loads also remain a challenge.
Global trade
The previous year, 2021/22, saw pent post-pandemic demand, the tail-end of stimulus packages in major economies, and strong consumer confidence lead a rebound for global trade despite supply-chain disruptions. However, momentum of that breakout year waned toward the end of the first half of 2022.
According to the United Nations Conference on Trade and Development (UNCTAD), global trade achieved a record USD 32 trillion in 2022, with the global merchandise trade showing 2.7% growth, almost on par with global output. The second half of 2022 however, saw a reduction in volumes and value, as global trade declined and commodity prices dropped. The last of quarter of 2022 reflected negative growth while indicators for the first quarter of 2023 suggested stagnation in global trade of goods.
Extraordinarily high inventory levels from the previous year’s over-ordering by retailers, was a major factor negatively affecting demand during the year under review: as inventory levels in the United States and other key markets reached all-time highs during the year. This also impacted demand cycles with lack of bourgeoning demand in the last quarter of 2022. Further, negative inflationary impact on consumer purchasing power affected the pace of inventory replenishment, leading to a dip in orders and resultant drop in air and ocean freight volumes.
Rampant inflation and responsive hikes in interest rates across major consumer markets had a significant impact on consumer behavior: Escalated cost of borrowing has limited credit for purchase of durables, household goods, food, transport, while increased rates also affected credit card utilisation.
Geopolitical instability, persistently high energy prices, demand-supply imbalances, and supply-chain bottlenecks due to protracted COVID-19 preventive measures in China, with spillover amongst regional trading partners; all contributed to depressed performance of the trade and logistics sector.
AIR FREIGHT
Tourism and passenger air travel continued a return to normalcy during the year under review; driving a continuous increase in global air cargo capacity. Buildup of capacity saw air freight rates normalise after the previous year’s pandemic-led demand surplus.
By early 2023, the air freight market had recovered approximately 75% of pre-pandemic cargo capacity. Demand for air cargo remained depressed but displayed resilience, as cargo tonne-kilometers (CTKs) showed month-on-month gains. Gradual stabilisation of air cargo traffic is expected to coincide with stimulus provided by new export orders from global manufacturing hubs, as indicated by an average upward trend of the Purchasing Managers Index (PMI).
However, on the back of reduced demand, customer behaviour indicated increased willingness to accept longer lead times and overall preference for cheaper ocean freight over air freight. Air moving on ocean can lead to tightening of margins and conversion losses for logistics service providers dealing with the shift.
While rates are expected to fall further aligned with increased flight frequencies and reintroduction of routes, the market remains competitive and is likely to be impacted by fluctuations in season demand and energy prices.
Ocean freight
Decline in global trade volumes that occurred during the latter half of the year under review holds sway with year-on-year decline in Twenty-Foot Equivalent Units (TEUs). Similarly, ocean freight rates have normalised during the year under review, after a surge in ocean freight rates experienced during the previous year, caused by supply-chain disruptions.
Influx of newly deployed ships to the market brought on by carriers receiving fulfillment of past orders also served to drive down ocean freight rates as sea freight capacity surged and new strings were introduced.
Early 2023 has shown some signs of stability as containerised freight indices indicate easing after nine months of decline. While a gradual rebound is projected, inventory glut experienced by major retailers continues to pose a challenge for ocean freight volumes and rates in the near future. New global shipping regulations in the form of IMO 2023, aimed at reducing carbon emissions and promoting energy efficiency in ocean freight, may also impact ocean freight in the period ahead.
EFL GLOBAL BUSINESS MODEL
Performance
- Rs. 537,669 Mn. revenue
- Rs. 29,429 Mn. Profit After Tax (PAT)
- 02 acquisitions in FY 2023, valued at USD 106.6 Mn.
- 7 new markets entered into
- New global sustainability projects initiated – 7
- Energy generated for operations through renewable sources – 929,367kWh
FY 2023 was a challenging year for the global logistics sector, which was affected by soft market conditions and spillover impact of retail overstocking that occurred during the previous year. Depressed operating conditions led to a moderation of freight volumes and normalisation of rates, resulting in an overall decline in revenue. However margins remained stable during the course of the year.
Despite subdued market conditions, EFL was able to deliver stable earnings; recording Rs. 537,669 Mn. in revenue and Rs. 29,429 Mn. Profit After Tax (PAT), with 95% of revenue from international markets. Market conditions led to a 28% reduction in ocean freight revenue and a 47% reduction in air freight revenue, year-on-year.
The Company’s earnings capacity was reflected in retention of a large portion of revenue from the previous year, and gains to overall share of business from key customers. EFL onboarded a number of new customers and retained existing customers despite challenges; even seeing an increase in wallet-share with key customers during the year.
The Company focused on consolidation during the year, prioritising network development and enhancing service and staff capabilities. Investment in capability development and relationship-building are at the heart of EFL’s consistent strategy.
Overheads in terms of Rupees increased by 63% during the year under review. Due to the depreciation of the Sri Lankan rupee, the devaluation impact on foreign currency monetary assets and liabilities was Rs. 2.3 Bn. Overall real terms OH is too an increase by 12%. Overall forex impact on performance amounted to Rs. 14.5 Bn.
Alongside addition of new warehousing capacity, the Company set up new stations in UK, Italy, Mexico, Costa-Rica, The Dominican Republic, Panama, and Brazil as part of a long-term strategy; with operating benefits to be realised in the future.
EFL showed remarkable resilience in the face of economic headwinds; closing the year with a strong balance sheet and excellent cash balance. The Company settled almost all short-term debt during the year, amounting to Rs. 89 Bn. Despite economic conditions pressuring working capital, debtor levels declined during the year. Retaining minimal debt levels with regard to short-term working capital, the Company was able to fuel its strategic acquisitions through long-term loans from the parent company and cash from the business.
The year under review concluded with two strategic acquisitions that serve to enhance the Company’s service portfolio, widen its strategic customer base, and expand business opportunities in North America.
PROSPECTS
Even though the year under review saw reduction of volumes and normalisation of rates in response to subdued market conditions, Expolanka’s logistics sector displayed resilience and made gains to facilitate future growth.
In the short-term, Expolanka’s logistics sector has consolidated market-share; maintained stability in margins through strong relationship-building and smart procurement; improved back-office functions to ensure service delivery at lower cost; enhanced processes to reduce transaction costs; and increased collection efficiencies and working capital availability. Strong cash-conversion has enabled settlement of required payments, debts to the parent company, and short-term loans, while driving strategic acquisitions and investments during the year.
Springboard for growth
In the medium to long-term, the Group is well set to capitalise on a market rebound. Profiled as a leading global logistics company, Expolanka has maintained a long-term focus that would set up the sector for future growth opportunities.
On the back of five strategic acquisitions in two years, network presence, service offering, and capabilities have expanded significantly. With preparatory work in place, the Group has plans to expand rapidly in the next five to seven years. Strong reserve build-up within the business and the backing of a strong parent company create the foundation for the next phase of growth.
The Group is set to expand into new markets and trade-lanes with efforts converging on two of the largest consumer markets in the world: Europe and Asia. The Asian retail market remains largely untapped and the group is exploring opportunities to meet import requirements of local brands, while providing necessary trucking and logistics services. Expolanka’s engagement in the European market has primarily been through third-parties, but the Group remains watchful with the intention to grow the region into a strong second market after operations in North America.
Strategy in motion
The sector strategy focuses on four key areas:
1. Customers and volumes
Acquiring volume by increasing wallet-share with existing customers and onboarding strategic new customers through service penetration and enhanced service capabilities.
2. Market and product diversification
Expanding offering by extending services along the supply chain and growing presence across business verticals.
3. Procurement management
Strengthening and developing partnerships to improve margins and profitability through better procurement.
4. Infrastructure, people, and technology
Leveraging technology and digital transformation to enhance procurement and improve service delivery within an efficient cost-structure.
5. Optimisation
Strengthening ancillary services and back-office functions to support operations in origins and destinations. Enhancing process efficiency to reduce transaction costs, and maintaining a strong capital structure and cashflows to propel future growth.
Business drivers
1. Strategic growth
Organic growth
The Company saw organic growth in customers and business verticals despite soft market conditions. A focus on building strong relationships led to expansion of wallet-share with key customers.
During the year under review, EFL’s compelling value proposition enabled the Company to attract a number of new strategic accounts across multiple markets in apparels and other related retail verticals. Additionally, EFL made notable growth across all key industry verticals: apparel, pharmaceutical, technology, perishables, home furnishing, auto spares, and consumer retail.
Continuing a long-term focus on network development as part of a geographic growth strategy to expand into growing markets, EFL moved into 07 new markets during the year: United Kingdom (UK), Italy, Mexico, Costa Rica, The Dominican Republic, Panama, and Brazil.
Mergers and acquisitions
EFL’s growth ambitions are driven by a Mergers and Acquisition (M&A) strategy aimed at increasing service capability and penetration and expanding geographic reach into new regions, while consolidating the Company’s presence in existing markets. Expansionary efforts are fuelled by a strong balance sheet, robust capital structure, and optimal gearing ratio.
The Company completed two strategic acquisitions during the year under review as part of its long-term strategic plan. This follows three strategic acquisitions completed during the previous financial year.
Acquisition of Trans America Custom Brokers Group, with a 100% equity interest for a total purchase consideration of USD 45.1 Mn. on a cash-free and debt-free (CFDF) basis.
Trans American Group has almost 40 years of experience in the logistics sector and has grown to become one of the leading brokerage companies in North America with operations in Canada as well. Trans American services some of the largest brands in the United States from the F&B, Retail, Automotive and other related industries, with minimum overlap across EFL’s client base.
The Trans American acquisition enables EFL Global to strengthen brokerage operations and position as a leading customs broker in the North American market. It would also serve to strengthen service capabilities to customers, thereby contributing to increased wallet-share. While consolidating EFL’s position in North America, the acquisition also increases exposure to a wider and more diverse customer base.
Acquisition of 100% of Locher Evers Group, for a total purchase consideration of CAD 83.7 Mn. on a cash-free and debt-free (CFDF) basis.
Established in 1976, Locher Evers Group (LEI) is amongst the leading logistics companies in Canada, specialising in ocean freight, warehousing, and other logistics services. With a history of nearly 47 years, the company has a client base across a wide range of industries with minimum overlap for EFL. The Group has branches across Canada and around the globe, with the majority of business serviced from Far-East markets.
The acquisition of Canadian logistics giant LEI Group is part of EFL Global’s strategy to scale up operations in the untapped Canadian market. The acquisition also enables EFL to strengthen infrastructure capabilities, extend its existing suite of services to customers across a variety of industries, and continue to grow Far-East operations.
Customer vertical diversification
A key element of EFL’s successful expansion over the last few years has been a concerted focus on diversification into new customer verticals and future-proofing of the Company.
A decade ago, EFL’s revenue was concentrated across a few strategic clients, with primary exposure in the apparel industry, service portfolio focused on air freight, and business centred around origins in South Asia.
Today, EFL’s diversification and growth have made it a truly global business. The Company has a footprint in 39 countries; entered into new industry verticals such as electronics, home furnishing, and auto-spares; and has earned the trust of a large number of strategic accounts that contribute significantly to profit and revenues. Far-east business constitutes a strong portion of origins business, and the service portfolio has expanded to an even split between air and ocean freight.
New acquisitions completed during FY 2023 have further developed and diversified EFL’s customer base, industry exposure, and geographic reach.
7. People-first
As a service-focused logistics business, EFL’s team is a key driver of the Company’s ability to deliver value and achieve long-term goals. As such, developing a highly capable team is an utmost strategic priority. The Company continues to focus on developing skills and capabilities of employees, driving learning and development across the organisation, fostering a culture of innovation, and enhancing client engagement.
EFL’s capabilities in domestic logistics, brokerage, and other products and services grew substantially with two acquisitions completed during the latter end of the year under review. The Company focused on integration of new teams and business units to enable a smooth transition and ensure continuity of services. People management during acquisitions was handled with a thoughtful and deliberate approach on the back of strong and continuous communication. Regional and global leadership were directly involved in communicating with leadership and teams and supporting integration in a staggered manner with minimal impact to employees or business operations.
Attracting and retaining talent
The Company took a systematic approach in hiring the right people to align with EFL’s expansionary efforts. Building on EFL’s growing brand strength in the sector, HR teams utilised Social Media and other channels to attract and recruit strong new talent for executive levels and below. HR policies were streamlined to ensure consistency across the Company’s global footprint while accommodating variations in systems and the supply-chain and unique cultural values.
Contributing to a performance-driven culture, the Company adopted suitable remuneration schemes, including variable-pay, to ensure that employees were rewarded in line with business performance. Employee remuneration packages considered regional variations and country contexts, while ensuring a structured and systematic approach that contributes to employee satisfaction and business performance.
EFL’s value proposition to employees went beyond benefits, to include a focus on culture, flexibility and work-life balance, diversity, mental health, and employee health and safety. The Company celebrated mental health week during the year with expert-led awareness programmes as part of a concerted focus on mental-health and wellbeing of employees.
Corporate culture
The Company continues to invest in creating a progressive workplace that develops teams and fosters employee engagement. The Group culture and common DNA is inculcated and developed across EFL’s operations around the globe.
Employee engagement
Rollout of the Darwinbox HR management software continued during the year under review, with 14 countries incorporating the system and 4 others set to go live with phased deployment. The integrated HR management software intends to improve employee experience and engagement and contributes to the Group’s overall people management strategy.
EFL introduced the Applause Awards across all geographies, wherein country heads and managers nominated outstanding employees who had upheld the Company’s values. Winners from across the globe were selected based on assessment against EFL’s five corporate values. The programme helped reinforce values and strengthen corporate culture across the Company’s operations.
EFL’s Global Goodness programme, detailed in the section on Logistics, supported a number of projects during the year, giving employees the opportunity to engage in community development and conservation work.
Training and development
During the year under review, training and development efforts focused on improving team capabilities for supply-chain management and local market development. The team was also strengthened with new capabilities in the e-commerce space.
Training programmes were guided by business needs and varied from technical skill to communication and personal development. EFL’s global leadership development programme continued during the year with focus on country and department heads and middle-managers. The programme involved a structured approach that incorporated psychometric assessments, 360 degree feedback, one-on-one coaching, strengths-development, and targeted training.
In addition to the speed-mentoring programme conducted during the previous year; women across EFL’s operations around the globe were able to access peer-mentorship and support alongside focused webinars on pertinent topics.
8. Sustainable logistics
EFL is a responsible global partner committed to ushering in a cleaner and greener supply-chain, collaborating and engaging with local communities, and addressing global challenges aligned with the Global Goals (UN SDGs) and as a signatory of the United Nations Global Compact (UNGC). The Company’s sustainability strategy incorporates these aspects and integrates sustainability with core operations and corporate values.
Greening the supply chain
Recognising the pivotal role EFL can play in the larger logistics sector and the supply chain of numerous industries, the Company works with customers, suppliers, and partners to pursue environmental goals and support decarbonisation across the supply chain.
As a global logistics services provider, EFL supports customers in their efforts to track, analyse, minimise, and mitigate their environmental footprint. Having committed to the Science Based Targets Initiative (SBTI), EFL measures Scope 1 and Scope 2 emissions, and is continually refining a holistic and dynamic approach to measuring Scope 3 emissions along the freight and logistics supply-chain. Emission information is made available to customers upon request in a transparent manner, in alignment with Global Logistics Emissions Council (GLEC) and Clean Cargo frameworks.
Staying abreast of sustainability efforts on a global scale and supporting customers in their climate journey; EFL works with airline partners to develop low-emission solutions that promote Sustainable Aviation Fuels (SAF), which are revolutionising the sustainability of air freight.
Working with suppliers and partners, EFL’s stringent supplier assessment criteria incorporates sustainability and environmental assessments. Going further, the Company launched a Supplier Sustainability Code of Conduct, which encourages suppliers to adhere to sustainable processes and obtain necessary certifications and accreditations that enhance their sustainability performance. The Code of Conduct will be utilised as part of EFL’s supplier onboarding process, requiring suppliers to disclose information pertinent to their sustainability performance, including Labour and Human Rights, Governance, Sustainability, and Ethical Sourcing.
EFL is also continuously engaged in multi-stakeholder dialogue and discourse, as a member of industry working groups such as Business for Social Responsibility (BSR) Sustainable Air Freight Alliance (SAFA) and Clean Cargo Working Group (CCWG). Engagement with industry peers and partners enables EFL to collaborate in making the supply chain greener, while offering customers the best possible solutions in alignment with their environment goals.
EFL Global Goodness
The Global Goodness initiative, launched in 2019, is EFL’s pioneering programme that advocates for social and environmental consciousness among employees and contributes to the Company’s delivery of its sustainability agenda and strategy. The programme engages employees in volunteerism and initiates or supports long-term development and conservation projects aligned with 06 UNSDGs that have been identified as most material to EFL’s operations.
During the year under review, EFL launched a number of large-scale projects across its global operations, centered on ecosystem conservation and climate change mitigation through reforestation and afforestation; waste minimisation and management; and community development. Projects and their impact are detailed in this section.
Environmental footprint of operations
Despite EFL’s relatively small direct environmental impact as a logistics service provider, the Company continued to take concrete steps toward minimising and mitigating the environmental impact of operations. As a responsible corporation, EFL is working toward assessing and establishing ambitious emissions-reduction goals.
Having achieved ISO 14001:2015 certification for all EFL warehouses, the Company's subsidiary EFL 3PL holds ISO 14064:2006 as well as receiving the LEED GOLD Accreditation.
EFL measures environmental performance against clearly defined internal emission-reduction and waste-reduction targets, which are mainstreamed as performance indicators for business units. During the year under review, the Company continued to invest in renewable energy generation and finalised a Zero-Waste Policy that was rolled out across the business. EFL's Zero-Waste Policy encourages global stations to adopt the 5R concept of Refuse, Reduce, Reuse, Repurpose, Recycle with regard to waste management. The policy provides guidance on waste management practices and aims to minimise waste generation while ensuring waste management best practices are adopted across operations.
Hong Kong Recycles (Hong Kong)
EFL Hong Kong kicked off a weekly recycling initiative with HK Recycles to ensure waste is categorized and properly transported to recycling plants. This initiative has enabled EFL Hong Kong to ensure waste generated is collected and disposed responsibly.
Transition of EFL’s India station to a completely paperless model was another significant achievement during the year. EFL 3PL retained carbon neutral certification during the year while adding renewable energy generation capacity.
EFL Global Goodness projects
During the year under review, EFL’s Global Goodness initiative focused on projects related to clean water and sanitation, reforestation, afforestation, and coast conservation; and community development. EFL’s stations across the globe took the lead in launching projects, with Latin America, Africa, and Asia commencing a number of new endeavours. Long-term biodiversity and ecosystem conservation projects such as Revive Bundala in Sri Lanka, continued during the course of the year.
GRI: 304-2
Environmental conservation Revive Bundala (Sri Lanka)
In 2019, EFL adopted 600 acres of the Bundala National Park in Sri Lanka to replant 125,000 trees over 5 years. Over 91,000 saplings have been planted at present, with 26,500 saplings planted during FY 2023.
Thaali Kulam and Urban Afforestation (India)
Launched in 2020 to restore Thaali Kulam, a body of water situated in South Chennai, India; the project took a phased approach to ecosystem recovery, initiated as a partnership between EFL India and the Environmentalist Foundation of India (EFI).
The project’s second phase commenced in 2022 with the launch of ‘ForesTree’; an urban afforestation project at Rathinamanalam, southwest of Chennai. Forty EFL Global volunteers worked to plant a total of 210 native ‘Pungai’ (Pongamia) tree saplings during this initiative, increasing the total number of saplings at the site to 460. A solar powered bore and watering system was also installed at the location to ensure long-term sustainability of the project.
Reforesting Tanay (Philippines)
EFL Philippines partnered with the Haribon Foundation, a renowned environmental conservation organisation in the Philippines, to reforest a plot of land in Tanay, situated east of Manila.
EFL employees volunteered and supported reforesting efforts. A total of 2,500 saplings will be planted across two phases under this project. The first phase was completed in 2022 and 1,250 saplings were planted.
Protect the Ocean (Nicaragua)
EFL Nicaragua together with Fauna and Flora International, an organisation with vast experience in conservation, launched a drive to educate and create awareness amongst EFL employees on the vitality of healthy ecosystems and the crucial role of sea turtles. The release of a cluster of sea turtle hatchlings into the sea was also conducted during the project.
Save the Coast (El Salvador)
EFL El Salvador in collaboration with FUNZEL, a renowned conservation organisation, conducted an awareness session on the impact of plastics on marine life and ecosystems, followed by a coastal clean-up and release of sea turtle hatchlings.
Coast Preservation (Hong Kong)
EFL Hong Kong conducted a coast conservation project in partnership with the Hong Kong Green Nature Union to remove pollutants at a beach in Lung Kwu Tan, Hong Kong. Employees of EFL Hong Kong directly contributed to the effort.
Local Community Engagement Revive Bundala (Sri Lanka)
EFL supports local communities residing in the vicinity of the park, by creating employment opportunities during the planting process. Dry ration packs were also distributed among community members to uplift their livelihoods in the face of Sri Lanka’s economic crisis. EFL also supports the upliftment of children at the Bundala Primary School, one of the oldest schools in Sri Lanka.
Play Pump (South Africa)
In 2019, EFL South Africa identified a rural school, two hours from the capital, and installed an apparatus named ‘Play Pump’ that pumps clean, drinkable groundwater to a tank overhead whenever children play. The tank distributes water to a local tap source connected through a pipeline. EFL continues to undertake for long-term maintenance and upkeep of 6 more “Play Pumps” across South Africa, which currently benefit more than 2,600 people.
Greater Hygiene (Kenya)
Many communities in Kenya, especially schools, operate under poor sanitary conditions hindering children’s academic activities. Identifying this concern, EFL Kenya launched ‘Greater Hygiene’ to construct a latrine at the Utumishi Primary School, benefiting more than 900 students.
Clean Water (Vietnam)
Vietnam is currently listed as a location where water shortages and scarcity pose a major problem for the population. This can especially affect families and young children, where water scarcity leads to a multitude of issues.
EFL Vietnam worked to address these concerns by implementing a Clean Water Treatment Project at a Kindergarten in An Dinh Village, located North of Ho Chi Minh City. The school is home to 76 students and teachers. The project is aimed at providing clean water free of contaminants to the school, thereby keeping the children and staff safe and healthy.
EFL 40th Anniversary Projects
On EFL’s 40th anniversary around March 2022, Expolanka’s Founder committed to sponsoring and implementing 40 projects over 4 years to support the most vulnerable communities in Sri Lanka. In alignment with needs on the ground, EFL partnered with local educational institutions to support development of infrastructure and facilities so they can provide children with a higher standard of education and an improved school life.
Walasmulla Hospital Project – Walasmulla Base Hospital, Beliatta
EFL Sri Lanka supported the OGA of Girls' High School, Kandy to establish an Intensive Care Unit (ICU) at the Walasmulla Base Hospital, Beliatta. EFL Sri Lanka funded the purchase of a Q7 Modular Patient Monitor as part of the project.
Football Kits and Equipment – Bakinigahawela Muslim Central College, Bibile
Financial support for purchase of football kits, boots, and equipment for students at the Bakinigahawela Muslim Central College, Bibile, Monaragala. A total of 60 students benefitted from the project.
Library Renovation Thawlampitiya Maha Vidyalaya, Mirigama
Financial support for renovation of the library at Thawlampitiya Ma1ha Vidyalaya in Mirigama, Sri Lanka. This endeavor was aimed at bolstering quality education and creating an empowered environment for students of the school.
Main Hall Renovation Kinivita Junior School, Mahapallegama
Carrying out a project to renovate the main hall of the Kinivita Junior School in Mahapallegama, Sri Lanka.
Desktop PC Donation Jaffna Library, Jaffna
Donation of two Desktop PCs to the Jaffna Library in Sri Lanka to strengthen their e-learning area. The donation is also expected to improve the quality of education of a large number of children who will utilise the newly installed PCs.
Global Goodness – Next Gen
The ‘Next Gen’ initiative was launched under EFL’s ‘Global Goodness’ programme to make children and youth aware of sustainable development and building a generation of conscious future-citizens.
Yein Udaan (India)
EFL India supports Yein Udaan, a community-based NGO in India offering holistic learning programmes for children, youth, and their parents to meet their needs and improve their well-being.
EFL India has sponsored students in an after-school program with Yein Udaan, to offer the children a safe space to increase learning opportunities and overall wellness. The Yein Udaan programme caters to about 50 children up to 18 years old, held at Lady Andal School in Chennai, offering academic support along with co-curricular activities such as photography, computer studies, martial arts, and other community-based programmes to complement schoolwork.
EFL 3PL
Performance
EFL 3PL delivered a strong performance during the year under review, despite Sri Lanka’s economic crisis and subdued global market conditions. The Company had a successful year driven by strong customer onboarding and retention, industry-leading value-addition and a dynamic suite of services.
The Company’s continuous efforts toward diversification strengthened presence in the pharmaceutical, FMCG, high-tech, and other strategic sectors. A wide service offering enabled deeper engagement and increase customer commitment, and strengthened relationships with key customers.
Testament to EFL 3PL’s dynamic work environment, the Company was recertified as a Great Place to Work for the 3rd time, and was ranked within the top 50 institutions in Asia during FY 2023.
EFL 3PL has won Gold in B2B Brand of the Year Category for the second consecutive year at the SLIM Brand Excellence awards. The award is a testament to the exceptional performance demonstrated by the company over the years.
Warehousing and distribution
Investments in value and technology-driven warehousing solutions during FY23 included expansion of cold chain capabilities and temperature-controlled areas. Ongoing expansion projects in Katunayaka and Kandana continued during the year under review, with the Katunayaka expansion nearing completion. Upon completion, it is anticipated to augment the existing warehousing and distribution space (capacity) by an additional 22% by early 2023.
EFL 3PL’s compliance, certifications, and accreditations are detailed in this section.
Sustainable logistics
The Company continued to invest in Solar PV as part of efforts to scale up its share of renewable energy and decarbonise the logistics supply chain. Their freeport facility in Katunayake has been converted to a 1.1 MW solar power generating plant. The facility meets its electricity demand sustainably by utilizing only 30% of generated renewable energy, while the remaining 70% is supplied to the grid, advancing their carbon-negative goals.
It is also noteworthy to mention that EFL 3PL has obtained the International Renewable Energy Certificate (I-REC), converting their emissions at certain locations into renewable energy.
PROSPECTS
Following a strong performance, EFL 3PL is well positioned for strategic expansion overseas. The Company plans to leverage EFL Global’s international reach and establish operations in key selected markets, with steps for expansion already underway. These efforts have drawn strong investment interest and are expected to increase service offerings and synergies within the Group.
With regard to the domestic logistics sector, continuous growth of warehousing and distribution capacity, technology development, and compliance leadership are planned for the years ahead. Coupled with diversification and deepening of new business verticals, such as the pharmaceutical sector, these investments are envisaged to fuel growth in the years to come.
The company remains one of the highly invested sectors within the group, and it is now reaping the fruitful results of these investments.
OKI-DOKI
Performance
Alongside depressed economic conditions and a decline in global trade, order volumes dropped and margins were pressured as energy prices peaked and customers looked for rate reductions. Sri Lankan manufacturers were sandwiched between global economic headwinds and the local economic crisis that resulted in major disruptions to operations and sharp rise in inflation. Fuel shortages and energy price fluctuations created a challenging environment requiring the business to adapt to the conditions. The Company diligently managed volatility in energy costs and coordinated closely with customers to manage requirements, maximise planning and utilisation via backhauling, and streamline the supply chain. Rate strategies were discussed with customers and dynamic pricing was rolled out where appropriate, integrating fuel prices in the pricing formula.
Retaining a long-term focus, the Company took steps to offer value-added pricing to ensure long-term sustenance of the customer-base and supplier-base; wherein business can reach scale when the market turns around. These measures enabled attrition rates to be maintained below 5% without impact to market-share or wallet-share despite reduction in volumes.
Community focus
The Company continued to work with the contracted transport fleet and trucker community during a particularly difficult year in the country. Training and awareness programmes were conducted, all payments were prioritised and released on time, and direct relief and supplies were made available where possible.
Technology-driven transport
Oki Doki has continued to invest in its core offering of technology-driven logistics, improving security, monitoring and tracking, and ensuring uninterrupted service availability through its dedicated operations team and monitoring centre.
PROSPECTS
The Company’s expansion overseas is set to begin in 2023 with venture into new regions in South East Asia. Operations are being set up on the back of strong partnerships with transport suppliers. Leveraging synergies within the Group, Oki Doki’s technology-centered business model and strong value proposition are well disposed for replication in Asian domestic logistics markets.
On the local front, the Company is charting a watchful path for growth and scale through increased volumes, while offering customers competitive rates that support economic revival. The Company is also systematising meticulous planning to maximise efficiency gains and backhauling through modular customisations to the integrated transport management system. New systems and processes such as these are expected to result in significant cost savings while driving down overall emissions.
Expolanka Airline Management (EAM)
Performance and prospects
Soft market conditions paved the way for EAM to pursue a strategy of consolidation as the business focused on enhancing its services whilst developing existing capabilities. The business has constantly invested in developing its infrastructure; enhancing capability, and building international relationships with a view to driving forward its current operating advantage.