A 'high rise' success story

by Ramani Kangaraarachchi

ALUMINIUM: When Sri Lanka began to focus on large scale property development in recent decades a number of innovative Sri Lankans who had a vision explored their potential to cater to future markets.

High rise buildings in main cities have become a prominent feature today due to various reasons. However, one cannot talk about high rise buildings without aluminium extrusions, which is an essential item as wood cannot be used for doors and windows. It was none other than Lanka Aluminium Industries Limited who had the foresight to be the manufacturer of high quality aluminium extrusions.

A BOI approved, public-quoted company which started with a USD 2.5 million in 1986 it manufactures 1400-1500 tonnes of aluminium extrusions annually and exports part of it to the Maldives while remaining the market leader in the country today. The company is looking at the South Indian market now. It was able to show a high growth rate even during a most difficult period in the country in 1989.

Being a part of Comcraft International, the company is associated with several other extrusion companies worldwide which enables it to keep abreast with the latest trends in the industry.

Managing Director of the Company, Dinal Peiris, who is a Mechanical Engineer qualified in UK said that the company's products are manufactured to meet British and other international standards and use only high quality LME registered primary quality raw material to manufacture extrusions.

The factory situated in a seven acre plot of land in Ekala is well equipped with an anodising and electro colouring plant which is of German technology and uses Henkle's proprietary Almecolour system, which ensures consistency in colour in every batch.

The all important selling process is also a Henkle product and every batch is tested for sealing quality and anodic coating thickness as per British standard BS 1615 of 1987.

The high capacity and high current anodising systems produce anodic coating thickness upto 25 microns with no loss of coating properties.

Being pioneers in the manufacture of high quality powder coated products, the company uses only the best quality architectural grade pure polyester powders. The critical pre treatment process is also from a Henkei Germany based system, and every batch is tested for coating thickness, bending, scratch adhesion and impact prior to delivery.

The company currently has installed four powder coating plants which give it the flexibility to manufacture four colours, simultaneously, thereby reducing order processing time. In fact most orders can be processed within one week, subject to the availability of the required colours, Engineer Peiris said.

According to him the company has invested a considerable amount in precision equipment to check vital parameters in the production process.

For example, anodising product sealing quality, the temperature profile in the powder curing ovens, hardness and temper of mill finished products.

The company also has the flexibility to manufacture profile designs to customers' specifications. The dyes are designed and manufactured in the UK and usually new designs in 160 colours can be produced within 2 weeks.

Attention to detail and the carefully controlled production procedures has enabled the company to offer a warranty on all the products ensuring customer satisfaction. Company has a work force of 150 including females.

Peiris observed better efficiency and dedication among the females. "I think this industry has not been able to attract our university students. They prefer to go to the management side rather than work in a factory. Although we pay attractive salaries there is a shortage of manpower and skills," he said.

However, only Lanka Aluminium was able to provide required standards for government buildings for a long time but due to budget constraints of Government funds, sales have been dropped in the recent past.

Another significant fact in the industry is that a large amount of inbuilt profit is absorbed by installation. Therefore the company is now concentrating on giving the total solution to the customers in the near future by joining with another party for installation of doors and windows. There is huge potential in South India which has a 60 million population.

But unfortunately there are no incentives from the Government to expand operations in such areas, instead they compel to start companies within Sri Lanka where there is not even basic infrastructure facilities, Pieris said.

He had an interesting story to say about the beginnings of the company. Initially this company was owned by an Indian expatriate but it was purchased by the management services arm of the Chandaria family in India, who left for South Africa at war time. They had come to Sri Lanka in 1984 and bought up Acme Lanka Aluminium.

Chandaria family is based in UK. The owners do not share dividends and they goes to a trust fund for charity, Lanka Aluminium is also planning to form a trust fund of that nature in the future.