Discovering the alchemy of success in scrap iron
 

by Aditha Dissanayake

Whoever said "one man's waste is another man's wealth" would definitely have known where to go shopping. As did Anurath Abeyratne, the Chairman of the Spa Group of companies, who went in search of scrap iron to start a business in the early 1980s and, landed at the Parliament Complex where he came across a Japanese officer who was eager to get rid of the scrap iron used for constructing the parliament and who was willing to sell the iron to Anurath for Rs. 500 a load.

"My whole salary at the time came to Rs. 300.00" recalls Anurath. "But somehow I managed to gather Rs. 500.00 to buy a load of scrap iron and start a hardware store in Panadura".

Thus begun in 1984, the Panadura Hardware store became the stepping stone in Anurath's journey of success. When Sri Lanka started to experience the onset of the garment industry explosion the urge to keep moving and exploring the business world prompted him to start a mini scale garment factory, which soon became a thriving business called the Apparel Spa (Pvt) Ltd.

His next venture was to enter the export arena by catering to the packaging needs of the garment industrialists with the inauguration of Korean Spa Industrial Co. (Pvt) Ltd, which soon became popular not only in the garment trade but also in tea, rubber and other traditional and non-traditional exports as a packaging company capable of catering to the exports sector.

It was not long after this that Anurath bought MAS International (Pvt) Ltd., originally a hat factory in Kegalle which was about to be closed down, to link it with Apparel Spa and make branded fashion wear like GAP, Mother Care etc. Similarly, a tyre factory in Ja Ela which was on the verge of bankruptcy was taken over and re-christened as Eu-Retec (Pvt) Ltd.

"It is my firm belief" explains Anurath "probably coming from my experience in the scrap machinery business, that closed or soon to be closed industries deserve first preference, not only due to the availability of infrastructure, but also because it would save the plight of an already skilled and experienced work force".

Anurath believes today, the Spa Group of companies is geared to respond to the call of the nation, expanding its wings to encompass the vast segments of the socio-economic mechanism, through foreign exchange exports, the introduction of new technology across the country and by helping to solve the unemployment problem. An old boy of Sri Sumangala MV, Panadura, he gave up a career in accountancy to "enter the dream world of an entrepreneur".

Having begun his business with a meagre capital of Rs. 500 and expanded it into a group of companies ranging from garments to garment accessories, high value added industrial direct exports to export supportive indirect exports, from telecommunication to international aviation and very soon into the challenging field of hydro-power generation Anurath reveals three strictures as the secrets behind his success.

One, being devoted. Two, being disciplined, especially on "money management" and last but not the least, being a Dreamer. Because, says Anurath, "If you build no castles in the air, you build no castles anywhere".