ACL 'powers' Lanka's energy sector

Ramani Kangaraarachchi

CABLE MANUFACTURE: Electricity is an essential but dangerous element in our day to day life. Therefore people are concerned about safety measures when dealing with electricity.

In that sense, ACL cables is the most sought-after brand of cables in Sri Lanka which ushered a new era in the power sector transmitting, distributing and utilising electrical energy for all cross sections of the country.

But very few would have known that it is not only the largest and pioneer manufacturer and supplier of the widest range of cables but also brings in Rs. four billion worth of foreign exchange to the country every year.

The company also has contributed to the economy of the country by creating around 900 employment opportunities to locals including a number of graduates of the Moratuwa University.

The huge factory complex situated at Piliyandala manufactures cables, packing containers loads to India, Maldives, UK and Australia while servicing its 45% share in the local market .

It is significant that nine out of the 13 tallest buildings in Colombo are protected using ACL cables. Managing Director of the company Suren Madanayake, a qualified mechanical engineer from the Texas University in USA joined the company in 1994.

Of course he was familiar with the industry even as a child following his father, Suresh Madanayake's foot steps who is the Group Chairman.

ACL Cables Ltd commenced operations in 1962 as a member of Associated Motorways Group of Companies and moved out from AMW in 1978.

Since then it has come a long way and has been able to beat even foreign suppliers of cables by supplying 80% of the requirements for, BOI approved projects owned by foreign investors. The company has invested around USD 20 million.

It continues to innovate and lead the field in the introduction of new products ,modern technology and machinery. Constant upgrading and new technology is very vital, Madanayake said.

The technology transfer agreements in recent times with Nokia Cables of Finland for the manufacture of XLPE. Insulated cables, Aerial Bundled Cables and Aluminium Aloy Conductors are significant among many other upgradings, he said.

The company also has the most advanced technology in the Asian region for the manufacture of low voltage Cross Linked Polythene cables.

The five factory units in Piliyandala manufacture aluminium cable, copper power, house building wire, flexible cables and aluminium rods.

Another factory in Ekala ACL Plastics, manufactures PVC compound which is a raw material required for manufacturing of cables.

ACL Kelani is a BOI company in the group that manufactures magnet wires. Even LG refrigerators are manufactured using these wires. Availability of the best testing facilities for cables is another strength for the company.

ACL cables was in export for the last 15 years and Suren through his long standing experience has realised that strategy for sustainable growth is none other than exports which bring in 50 per cent of turnover of the company at present.

"We have not experienced complaints from our clients even after many years of usage of our products. "Excellence through Total Quality Management is our catch word, and customer services have been the hallmark.

"Quality concept is translated into every aspect of the product manufacture through process coordinated efforts of professionals on the job because we can't take a chance with electricity. Unfortunately some people buy low quality products at cheap prices without realising the gravity,' he said.

ACL cables also has faced many challenges during their tenure of duty and continue to face them while moving forward. "We don't get equal opportunities although we are a true Sri Lankan company. There are some rules and regulations with regard to VAT components. Certain items we just export and then import to qualify to claim the VAT component.

It doesn't help anyone. Also we are not allowed to maintain a dollar account being exporters. Every time when the dollar fluctuates we are losing, these are the things that Government authorities should look at, Madanayake said.

The company has performed several CSR projects over the years. Conducting training programmes for electricians islandwide is one of them.

The company has obtained ISO 9002 I,ISO 9001 ISO 14001 certification over the years.