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By Shirajiv Sirimane

Brown and Co.Ltd headquarters in Colombo (The old 'Horboury House' is below).

A small bicycle repair shop started by two friends over 125 years ago in Norwood, Hatton has today turned into one of the top companies in Sri Lanka. Two Scottish young engineering friends, James Brown and M. Ray visited the then Ceylon and in 1875 and set up a small bicycle repair workshop in this town in the hill country which was then the principal plantation centre.

The timing for the two friends was ideal since this was the era the entrepreneurs were starting tea and coffee plantations in the region. The common mode of transport for these planters dressed in 'khaki' shorts and shoes was the push cycle and the workshop in Norwood was thriving with business.

The two friends took a major step forward on August 17, 1892 by setting up the Brown and Company. It was incorporated as a locally registered 'rupee company' with a share capital of Rs. 500, 000. During this time they diversified their business and concentrated on business to supplying machinery to the tea industry. The company was also listed on the Colombo Stock Exchange.

The two friends moving with the trend entered into other areas of businesses such as the construction industry and supplying building materials such as asbestos sheets, and sanitary fittings and other household items. The stamp of the Brown and Company could be even seen today on some of the sinks at the Nuwara Eliya Hill Club.

The company's success was growing at a rapid pace and they set up establishments in Colombo and Nawalapitiya. Browns bought a two-storied 'Horboury house' with a big garden in Colombo 7 to set up their business in Colombo 7 mainly to sell building materials and household items. This was the house that the legendary architect Bavis Bawa was born.

It is said that the company bought this prime land in Colombo 7 at Rs. 800 per acre. Today this building stands majestically housing the Browns HR department and the company's headquarters were later built adjoining it.

Brown and Company went in for a major investment in the beginning of the 20th century by setting up their motor division and being the agents for Ford cars from UK and assembling them in Ceylon. This division is today, a leader in its field holding distributorship and franchise rights for Suzuki Motor Corporation, Japan, Citroen Automobiles, France and Swaraj Mazda Ltd, India. The year 1947 was a significant and propitious one for the company as it purchased the total equity capital in the then Hatton Bank Limited and the Hatton Transport and Agency Company Ltd.

Brown and Company became a Ceylonese Company holding a Ceylonese Traders' licence with rights to trade with all countries in 1959 and the following year the group expanded further when Standard Finance was incorporated. In the same year the company acquired a majority share holding in Walker and Greig Ltd while Mason Mixture Ltd. became a member of the Browns group.

This year also saw Brown and Company incorporating other companies to enable them to extend its avenues to other areas of business such as tourist, travel and other areas.

The new chairman of the group Edmund Joseph Cooray, was undoubtedly the mentor behind these series of new financial deals. A highly respected grade one government servant and a barrister educated in UK he was also the founder of CWE and People's Co-operative Bank, which is today the People's Bank and the Co-operative Insurance Society which became the Insurance Corporation. As he came first in the Civil Service examination, he was called by the British Civil Service Commission to serve in India, which offer he declined to return to Ceylon.

In 1970 Hatton National Bank Ltd was incorporated to take over the business carried on by Hatton Bank Ltd, and the branches of National and Grindlays Bank Ltd in Kandy and Nuwara Eliya.

HNB which was originally a subsidiary of Brown and Company Limited became a public company in 1971.

Brown & Company Limited achieved Group status in 1974 and has since diversified its activities. It has become a conglomerate with fully owned subsidiaries and Associates involved in manufacturing and distributing of batteries, radiators, paints and represents itself in the Banking, Airline and Trading Sectors as well. It trades a range of products in Consumer Electronics, Hardware, Agricultural Products, Generators, Vehicles and Commodities.

The Brown's Group which is led by a virile and dynamic management is ever alert to business opportunities and avenues of advancement through joint venture participation with renowned foreign companies.

The Agricultural Directorate of Brown and Company Limited is engaged in marketing agricultural machinery, implements and equipment and have held the prestigious Massey Ferguson-UK franchise for the last 50 years.

The Battery Directorate handles the distribution of Exide and Dagenite Hard Rubber and Polypropylene Automotive and Motor Cycle Batteries manufactured by an associate Company in the Group, Associated Battery Manufacturers. Exide Batteries continue to dominate the battery market, with a market share of over 50% and a dealer network of 400.

A number of Consumer Products has been identified and introduced to the market by the Commodity Directorate.

The General Supplies and Marketing Directorate handles the import and distribution of Hardware, Office Automation products, Consumer Electronics and Household Appliances and veterinary pharmaceuticals.

The Directorate holds several prestigious international Agencies including Sharp Corporation and Makita Corporation of Japan, Sumeet of India, Elba - Italy, Moulinex - France, Olympus - Japan and many other brands.

This Directorate also manages a showroom network of over 30 showrooms islandwide that markets a wide range of products, making Browns products accessible to a wide range of urban and rural consumers.

Brown and Co Ltd have been pioneers in the supply, installation and service of Generators for over 40 years. They have over the years supplied Generators for the domestic, commercial and industrial sector of Sri Lanka and have also been associated with supply and Installation of Generators and Equipment for the hydro power schemes in Sri Lanka.

J. Chrisantha R. Cooray who is a Fellow of the Chartered Institute of Management Accountants, London said that with the open economy introduced in 1978 by the then President J. R. Jayewardene trade really started moving in Sri Lanka. "Most of the traditional companies were not geared to adjust to the open economy. But small timers with less decision making problems got involved with imports and they made huge profits," he said.

Cooray joined the Browns Group in 1968 and later was appointed the Group Secretary. He was appointed a Director in July, 1979 and functioned as its Managing Director in addition to his duties as Group Secretary.

Cooray was appointed Chairman of Hatton National Bank Ltd. and the Browns Group of Companies in 1989.

The Chairman said that last year was a bad year for them mainly because the nation had a negative economic growth. "But this year we have invested heavily on top management personalities to our group and this financial year is going to be very good for us," he said.

Cooray received his Fellowship of the Chartered Institute of Management Accountants in 1974, and he was the youngest Sri Lankan to be appointed a Fellow.

Cooray had his education at St. Joseph's College, Colombo and after completing his GCE O/L he joined Aquinas University College where he sat the London GCE A/L, after completion of which he proceeded to the UK in 1965 to pursue his studies in Accountancy. "In the new millennium, Browns are well equipped to take a leading part in Sri Lanka's new growth and development," he said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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