LTTE should fight economic battle

I think the LTTE and their sympathisers have got their priorities mixed up. What they should do is to fight an economic battle rather than an armed struggle. What they should do is to come to Colombo and invest in business opportunities and try to gain an edge over everybody.

The Tamil diaspora even today does this by buying shares in Colombo and entering the market and then help their community by looking after them by way of employment and other CSR projects. As for now the diaspora donates money for an armed conflict where there are high casualties on both sides.

Shirajiv Sirimane

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A young entrepreneur who started business with Rs. 8,000 to manufacture paint 28 years ago using ageing technology has today expanded his empire to a multi-million dollar business and is looking aggressively to expand their business overseas.

Raja Hewabowala, Managing Director Nippolac Paints speaking to Daily News Business at the Peacock Beach Hotel in Hambantota said they are now looking at opening a factory to manufacture paints in Chennai and enter the Indian market.

Being an undergraduate at the Moratuwa University in Polymer Chemistry made him decide to venture into the paint industry.

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Q. How did you start your business?

After passing out from the University my parents and an aunt gave me an advance of Rs. 8,000 to start a paint manufacturing facility in the backyard of our house in Matara.

Finding a mixer and a grinding machine was a major problem and I used the Grinding strone in the kitchen to mix the chemicals. Another problem I faced was to travel to Colombo regularly to purchase chemicals to manufacture paints.

I also purchased small quantities of labels and tins.

However surprisingly I did not find it difficult to sell my products as the merchants had faith in the product which was marketed under the brand name Nippolac. After one year, I also decided to test out other brands which also became successful. Then I did away with the methods of marketing Nippolac by taking them in my own push bicycle and bought a lorry.

For this, I had to pawn our house and raise a loan of Rs. 150,000. I also bought a locally made grinding machine as the labourers who were working for me left regularly as it was too strenuous to grind manually. With the help of this machine, I also manufactured anti corrosive, wood paints along with thinner and other products.

Q. What was your marketing strategy?

One was not to comprise quality at any stage and the close rapport I had with the merchants. I used to invite them home for meals and we also attended each others' family functions. They became a part of our family I must say that all communities helped me.

I also made sure never to default the Bank and there was not a single cheque that bounced. I also settled my loan and took further credit of Rs. one million. I never wasted profits and put them back to business and settle outstanding loans.

From this I purchased a new machine from Germany and a new lorry. I also started manufacturing Emulsion water based paints and I must thank the CISIR who assisted me with technical support.

I also took over an abandoned rice mill in Walgama, Matara to expand my factory. To market my products professionally I also hired a marketing manager and supporting staff.

Q. When did you migrate to Colombo?

It was in 1990 that I got to know that a Chemical factory was for sale in Ja-Ela and brought it along with prime land from Rajagiriya for an office complex. I also bought over a can manufacturing factory in the Ekala Industrial zone. With these investments I became self sufficient.

Q. Looking back what do you think of your landmark achievements?

Well while my products were being marketed outside the Southern Province the multinational paint manufacturers launched several campaigns not to buy locally manufactured paints which they said were of low quality. I fought this battle successfully and I think it was a great achievement for me.

Nippolac was the first Sri Lankan paint manufacturing company to obtain the SLS mark. In addition we also received the ISO certification. We also introduced a computerised Colour mixing system with Italian technology where you can match over 2,000 colours.

In addition we have formulated a system where customers could see in advance their house being painted in several colours with the assistance of a computer before the actual paint is done.

In addition I have also won several awards which I think are returns on hard work I did.

Q. What are the problems the industry is facing today?

One of the main problems we are facing is the high cost of imported chemicals and this is getting worse with the currency fluctuation. Another problem I am facing is the lack of qualified staff for my factory from the Matara area. Lack of quality schools in the Matara area does not allow me to employ expatriate families.

The high cost of electricity too is another grey area.

Q. What do you think of the ethnic conflict?

I think the LTTE and their sympathisers have got their priorities mixed up. What they should do is to fight an economic battle rather than an arms struggle. What they should do is to come to Colombo and invest in business opportunities and try to gain an edge over everybody.

The Tamil diaspora even today does this by buying shares in Colombo and entering the market and then help their community by looking after them by way of employment and other CSR projects. As for now the diaspora donates money for an armed conflict where there are high casualties on both sides.

However if they invest on enterprises, the casualties would stop and the Tamil diaspora can also get financial returns by way of profits.

Q.What do you think of the tax structure of the country?

I think it's too high. They have to be simplified. We are one of the highest taxpayers to the country and I think the returns we get for paying taxes are not fair. I think more infrastructure has to be provided as returns for payment of taxes.

Q. How do you see the development in the Southern Province?

I am happy to note that there is something happening in the South by way of development. I think that more than the Port and the Airport what the South needs is an expressway.

Without it you cannot expect foreign investors. When the Expressway is over there would be a surge of development in the South.

Urgent measures too should be introduced to find solutions for the growing need for energy and the Government must look at alternative power projects. There was a major problem with telecommunication when people had to wait years to obtain connections.

However this has been solved mainly due to more private companies coming into the market.

Q. Do you think Provincial Councils are viable?

No. They are just a waste of money and time for a small country like us. They also add to the bottlenecks that are already there in Government institutions. I think that the Chamber movement is doing a better job than the Provincial Councils.

Q. What do you think of the Budget?

It's good and I really appreciate the fact that it gives more emphasis on local entrepreneurs.

Q. What is your favourite destination to spend your free time?

I do not have free time. If I get the time I like to see undisclosed places and historical ruins in Egypt, Turkey and Greece. I also think that the Government should come up with a way to give more overseas TV channels for the masses at a cheaper price.