Tea with K. Ramakrishnan

RUWANTHI ABEYAKOON

K.Ramakrishnan, Managing Director, Lanka IOC

K. Ramakrishnan is an MBA from PSG College of Technology, Coimbatore, India under the Madras University and passed out in 1976.

He came first in the Madras University in its MBA programme and was accorded the Gold Medal. Immediately after completing the MBA degree, he joined the PSG College of Technology, Coimbatore as an Associate Lecturer in the Department of Management Studies and served the Institution for the full academic year commencing April 1976.

He joined the Indian Oil Corporation Limited, India on March 14, 1977 which is the largest commercial enterprise in India with a current annual turnover of over USD 50 Billion. He has served IOC in many locations in India in various capacities in the areas of marketing, public relations, advertising and brand building.

He assumed charge at Colombo as the Managing Director, Lanka IOC PLC on October 1, 2005. His vast experience over the last 30 years in petroleum has enabled him to achieve positive results for Lanka IOC PLC in Sri Lanka. Under his able leadership, Lanka IOC is bound to achieve better value addition to Sri Lanka as a catalyst for economic growth.

Q: How did Lanka-Indian Oil Corporation (IOC) commence business in Sri Lanka?

The Sri Lankan Government invited the Indian Government to commence petroleum business, revamping country's industry. IOC India was the best company to venture into Sri Lanka, as it was the largest company in India in terms of turnover with an annual turn over of 50 billion dollars.

Lanka IOC was given the responsibility of nurturing the Trincomalee oil tank. There is an exclusive jetty to bring in the imported petrol and diesel.

The main purpose of the Government was to create better competition and offer better services to the people, as Ceylon Petroleum Corporation (CPC) was the only one in the petroleum retailing business.

Q: How do you analyse the market the company has entered?

The Government planned a three-player market. CPC, IOC and one more player was to come. At present it is a two-player market. IOC was at the beginning a 100 per cent subsidiary.

IOC made it a local company by listing in the Colombo Stock Exchange. The company invited the public to participate in the public issue.

It was 11 times over subscribed. In November 2004 the company became Lanka IOC Limited. IOC owns 75 per cent while the public has 25 per cent. We have around 14,000 shareholders. Our market is mainly in the Western Province.

Q: What are the achievements of Lanka IOC?

Lanka IOC brought better competition. The company modernised the petrol sheds by rebuilding them. It was a new experience for the locals.

Meantime CPC also revamped their fuel sheds. So both looked better and offered a better service to the customers. Before we came in the Trincomalee tank was not put into full use. They were loading around five bowsers. We increased it to 70 bowsers. Now there is better activity in Trincomalee.

There are only three major companies there. They are Prima, Tokyo Cement and Lanka IOC. We were able to take more activity into the area. The other major aspect was to balance the distribution. The whole industry depended on the Colombo storage. It is balanced with the Trincomalee tank. There is a better oil security for the country.

Q: What are the priorities of the company?

The Mahinda Chinthana gives a lot of thrust to Eastern Province. Lanka IOC has a vital role in the development of Eastern Province and its economic augmentation. The company has a huge responsibility in making the product available.

From the Trincomalee plant we distribute to areas such as Kurunegala, Dambulla, Puttalam and Habarana. In addition to supplying to our petrol sheds, we also distribute petrol and diesel to the KKS port for CPC.

Q: What are the assets of the company?

The Trincomalee oil tank is the largest asset, which was given on lease by the Government.

LIOC owns 1/3 of equity capital of Colombo Petroleum Storage Terminals Limited (CPSTL) which has 15 storage locations in the country.

CPSTL is a vital national asset for distribution of petroleum products. It distributes to the sheds, railways, power plants and direct industry customers.

The petrol sheds owned by the company are also vital. The lube oil blending plant with a total investment of Rs. 1.3 billion is important to meet the purpose of serving the country and increasing the competition.

Q: What are the new areas the company is concentrating on?

The company has a turnover of Rs. 38 billion. It will be ranked number two or three amongst the other private companies in terms of turnover. In a short span company has achieved this position. It should grow and the growth can come through new sheds.

The untouched markets such as tea, fishery, and agriculture will be looked at. In 2008 we will be able to commence establishing hundred sheds. That is the main task ahead of us.

Q: Are there any issues in the industry?

Pricing of petroleum products is an issue. An immediate price increase is required. It is a fact that Government has been increasing the price. World oil prices have gone up so the local price increase is unavoidable. It is a challenge and an issue, which should be addressed.

Q: How will IOC contribute to develop the oil industry?

Lanka IOC is the consultant for SAP software implementation.

It took seven years for India to implement this. SAP computer software system handles everything for the company.

It will bring better management, higher profitability, efficiency and ultimately productivity will go up.

It is a proven software system for the oil industry. CPC, CPSTL and IOC would be provided with SAP by IOC India.

Expertise from India will arrive and implementation will take off in November. The other important project is the pipeline project connecting the Colombo storage with the ones at Muthurajawela and Kolonnawa.

Lanka IOC will facilitate this project owned by CPSTL.

My boss

Secretary Kamani Balawardhana

Hathoon Sheriffdeen

“No calls have been missed by my boss so far from the day I have been working for him. He keeps track of his daily caller list after the daily meetings in the mornings.

“Each and every call he receives has been given priority. Even the general calls he transfers to the person concerned. He is very attractive and handsome in his way of living. An impressive personality had been built on his activities.

“No matter the person and his position his attention will be drawn to the people around. He is on the top of the minds, have met him so far. “I feel very comfortable and happy to work under my boss. He has made me work on schedule to and on time. I’m calm and peaceful at my work. My boss knows the pulse of Lanka IOC Kamani Balawardhana, Secretary to MD, Lanka IOC K. Ramakrishnan, said.

‘My boss views a flat organisational hierarchy at Lanka IOC. The way I am treated at present is the same the way anybody is treated.

It’s a pleasant experience we have at IOC, in all the movements. We don’t feel busy and frustrated in our work.

“He is an Indian, and wants to serve our country, by giving his expertise to climb the ladder of the career. I don’t see him being angry.

“His only weakness is giving many chances to people to correct their mistakes.

“I have also realised that this quality of his has made them correct their work with his advice”, Balawardhana said.