Refining our Portfolio…and Reinventing our Future

A Forward Looking Note

Continuous refinement of the portfolio and the resulting improvement in gradually reducing dependence on the auto segment from a risk management perspective will stabilise performance.

It is often said of ‘best in class’, high performance organisations that they are the most likely to be taking data-driven, calculated risks in respect of new product innovation and are invariably the first to market with ‘customer expectation exceeding’ products, constantly fuelling sustainable growth.

The Dimo portfolio reflects that of a best in class, high performing Company, with an illustrious history spanning 74 years and truly diversified interests. In fact, Dimo is one of the oldest retailers and distributors of Mercedes Benz and Tata motor vehicles in the Asian region.

The Dimo portfolio is an expression of strategy; analysing its spread and ‘adding up the numbers’ gives one a pretty good idea of the strategy that drives our business. An obvious corollary is that the portfolio must support our strategy.

We strive each day to optimally manage our portfolio with some obvious benefits to Company and stakeholder alike. In fine tuning and refining the portfolio, Dimo seeks continuous improvement in its financial positioning; in our book, value derived must be accompanied by value delivered. Hence we also seek to maximise shareholder value. Every business would seek to increase market share and attain the most competitive positioning for its enterprise. We do too.

As in every facet of our business, we allow an emancipated risk management process to inform and guide the management and refinement of our portfolio. Seeking that optimum balance between short and long term, high and low risk is an ongoing proposition.

It is a fact that a good 75% of Dimo’s business interests lie in the motor vehicle sector. This sector is highly vulnerable to the macro-economic policies of the Government where tariff policies and interest rates among other factors impact business directly. We are also constantly challenged to keep abreast of new technological developments and cope with factors such as market saturation.

Whilst our prime area of business remains the auto sector, Dimo is constantly strengthening its other business segments. The table that appears at the end of this chapter illustrates the performance, contribution and other data pertaining to our business segments.

Dimo constantly revisits its portfolio and pursues a pro-active path of differentiation; we look at upgrades to plant and equipment, new product models and constantly developing our service regimes.

We’re also exploring more diversification in areas such as building and construction technologies, power solutions, medical equipment, consultancy and advisory services, training academies and marine repairs among others.

Nano technology excites us greatly. Dimo has undertaken a research venture with the Sri Lanka Institute of Nanotechnology (SLINTEC) to introduce this original and exciting concept to Sri Lankan industry. We see many opportunities for Dimo through the application of this technology.