LASCO Distributors Limited (LDL) announced plans to increase its warehouse space by roughly one-third to 340,000 square feet (sq ft) which equates to one of the largest in the country.

It will accommodate increased inventory in order to facilitate the plans to double annual sales to $20 billion in three years. It follows the 2012 expansion at the White Marl, St Catherine location. That expansion cost US$25 million.

The latest build-out will focus on the distribution arm of Lasco, while the earlier development dealt with Lasco Manufacturing Limited (LML).

The company remains mum on the cost of the development.

“We are adding 110,000 sq ft of warehouse space only for Lasco Distributors. So it will be 340,000 sq ft of building on eight acres of land. I suspect it will be the largest warehouse of its kind in Jamaica,” said Lascelles Chin, chairman of the three Lasco affiliated companies in his address to shareholders at the annual general meeting (AGM) held at the Knutsford Court Hotel in Kingston yesterday. “They have paved the grounds for the building to start and it will be finished in February next year.”

Lasco aims to double sales by growing existing lines and launching a raft of new products including its new fruit flavoured drink, iCool.

“We talked a lot about the desire of the three companies to increase sales and profits by double in two to three years’ time. If we nearly achieve that it is still great,” he said. “Its ambitious and some of you would call me a madman.”

At the 2013 AGM, Chin initially made the challenge to double profits at the three affiliated companies in three years.

The projection would double LDL profits to roughly $1 billion; LML profits to $1.2 billion and Lasco Financial Limited (LFL) profits to roughly $320 million, based on the 2013 projection.

In 2011, Chin announced plans to double sales in three years for his manufacturing division — LML from $2.9 billion to some $6 billion.

That was dependent on the completion of the factory expansion which was delayed before finally starting in January 2012. Over the period, LML actually increased sales 25 per cent over two years to some $3.7 billion in 2013.

“Our chairman has set out robust targets and certainly we are gearing to meet those targets,” stated LDL managing director Peter Chin in his address at the 2014 AGM yesterday.

The three companies have roughly $8.4 billion in market capitalisation as at September 30. The largest chunk is held through LML with four billion ordinary shares at $0.87, followed by LDL, with 3.3 billion ordinary shares at $1.18, and Lasco Financial Limited with 1.2 billion ordinary shares at $0.87.

Some 100 shareholders attended the meetings, including vocal minority investors Sushil Jain, Orrette Staple and Livingston Young.

Lasco’s three publicly listed companies earned multiples for investors since listing on the Jamaica Stock Exchange Junior Market in 2010.