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 2018, 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.[6]

William Francis Pegel was appointed the Chairman of CTC since 2019 and Nedal L. Salem as the Chief Executive Officer/Managing Director since 2019. A complete list of CTC's Board of Directors and the Executive Committee members can be found on the CTC website.

In 2018, the number of permanent employees of CTC was 270, with an employee turnover rate of 7.9%.[6]

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 2018, the number of shareholders of the CTC were 3270. It was a reduction by 119 from the number in 2017. Following were the 20 largest shareholders (in the descending order):

British American Tobacco International Holdings | Philip Morris Brand SARL | Pershing LLC S/A Averbach Grauson & Co. | SSBT-BMO Investments 11 (Ireland) Public Limited Company | Northen Trust Company S/A - Fundsmith Emerging Equities Trust PLC | RBC Investor Services Bank | SSBT-AL MEHWAR COMMERCIAL INVESTMENTS L.L.C | HSBC INTL NOM LTD-BBH-Matthews Emerging Asia Fund | HSBC INTL NOM LTD-JPMCB-Long Term Economic Investment Fund | Mrs Jasbinderjit Kaur Piara Singh | HSBC INTL NOM Ltd - SSBT-BMO-LGM Frontier Markets Equity Fund | Miss Neesha Harnam | HSBC INTL NOM LTD-SSBT Frank Russel Trust Company | HSBC INTL NOM Ltd - SSBT-Deutsche Bank AG Singapore | Mr Prabhash Subasinghe | AYENKA HOLDINGS PRIVATE LIMITED | PICTET and CIE (Europe) SA S/A Lloyd George Indian Ocean Master Fund | Harnam Holdings SDN BHD | Mellon Bank N.A-Eaton Vance Trust Co.Collective Inv. | Bank of Ceylon No 1 Account | HSBC INTL NOM LTD-State Street London | Nortthen Trust Company S/A - Coupland Cardiff Funds PLC | HSBC INTL NOM LTD-JPMCB-Coronation Global Frontiers Master fund | HSBC INTL NOM LTD-JPMCB-New Emerging Markets.

They collectively owned 96.69% of shares. Except for Bank of Ceylon No 1 Account and Mr. Prabash Subasinghe, all the others were foreign investors.[6]

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:

Community Protests at the 2018 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).[7][8] A similar protest was reported in 2016.[9]

Image 02: A protest at the CTC headquarters in its AGM held on April 2018[7]
Image 03: Ada newspaper reporting the protest[8]

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.[10] The court case in question was initiated by a widow of a smoker seeking compensation for the lung cancer related death of her husband.[11][12] Please see our page Ceylon Tobacco Sued for a Smoker’s Death for more details.

Tobacco Unmasked Resources

TobaccoUnmasked_Sinhala
TobaccoUnmasked_Tamil



Relevant Link

Ceylon Tobacacco Company’s website

References

  1. 1.0 1.1 1.2 1.3 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 6.2 Ceylon Tobacco Company PLC. (https://web.archive.org/web/20200219002440/https://cdn.cse.lk/cmt/upload_report_file/460_1555498758602.pdf Annual Report 2018) 2019, Accesssed February 2020
  7. 7.0 7.1 Alcohol and Drug Information Centre (ADIC) Sri Lanka. Facebook page, 2018, accessed June 2018
  8. 8.0 8.1 Ada. සිගරට් භාවිතයෙන් මියගිය පුද්ගලයන් සිහිකරමින් මතක වස්ත්‍ර පූජාවක් සහ මහා පාංශුකූල පිංකමක්. 27 April 2018
  9. SN Ganewaththa. දුම් බී මියගිය අය සිහිකර මතක වස්ත්‍ර පූජා කර පාංශු කූලය දෙති, Divayina, 04 April 2016, accessed June 2018
  10. Daily Mirror. Delaying trial for 12 years: SC orders CTC to pay widow Rs.400,000 as costs 16th June 2018, accessed June 2018
  11. Supreme Court of Sri Lanka. S.C. Appeal 102/2009, 14th June 2018, accessed June 2018
  12. S Samarasinghe. Tobacco faces smoking death case, Nation.lk, 2nd November 2008, accessed June 2018