Tea with Hemantha P. Perera , Managing Director Kelani Cables

Anjana Samarasinghe

Maintaining discipline at the work place is important and the management has a vital role to play in maintaining discipline among workers Managing Director Kelani Cables Ltd Hemantha P. Perera said.

He said one cannot expect the workers to come early to work if the boss comes to work late. "You need to discipline yourself first and let your subordinates to follow you. In day to day operations the company needs to consider the ideas of workers on improving efficiency. Recognising employees and rewarding them at the correct time will increase productivity. Bosses always need to have a closer relationship with their subordinates."

"At Kelani Cables we give priority for employees suggestions and this has paved the way to cut unnecessary costs to the company and improve profits," he said.

Q:What kind of a growth has the company gained last year?

The industry had a 10 to 15 per cent growth depending on the economic situation in the country and as an individual company we were able to exceed this growth. Last year the company turnover was Rs. 2.8 billion and this was a 61 per cent growth compared to 2006.

The company recorded Rs. 302 million profit after taxation and this was a 68 per cent growth comparing with 2006. We have three market segments which are the Ceylon Electricity Board, Institutional buyers such as condominium projects and the distribution market.

We have strengthened our distribution arm and this segment contributed heavily for the company's overall growth. We were able to maintain higher growth than the normal industry growth.

Q: How does the current economic condition impact your business?

Interest rates in the country have gone up and the borrowing power of the investors has come down. If a company borrows money and invests on new ventures, the company needs to make sure of generating more money through the new venture in order to make profits and repay the borrowings. Due to the dollar fluctuation and high price increase of raw materials company profitability has come down though we maintain our sales turnover.

The company also needs to focus on salary increments of the employees with regard to the high increase of cost of living.

Q: How do you see the competition in the industry?

Any company needs to be unique in the market place for better competition. Kelani Cables always tries to offer something unique to its stakeholders. I believe if we want to move forward the company needs to do something extraordinary. We have created an Electricians Club with the membership of 4000 electricians. Through this we have introduced a rewarding scheme for the electricians and a scholarship scheme for their children.

This will help us maintain a long term relationship with these electricians. Collaborating with the University of Peradeniya, the company has launched a professional course for electricians where at end of the course, participants will receive a certificate from the University.

These initiatives has helped us to be much more dynamic in the market place.

Q: What are the major barriers that you are facing at the moment?

Today taxes are very high but we cannot expect the Government to reduce taxes since the country needs that money to bridge the budget deficit. On the other hand corporate taxes have been increased. But with the situation the country is facing we cannot ask the Government to reduce them. We have to solve the grievances in this country.

Q: How is your international operations and what are the opportunities in the international market?

We do exports to India and Maldives but there are a lot more to do in the international arena as a local cable manufacturer. There are untapped markets in Sri Lanka. My objective is to be stronger in the local market and then strongly establish in the international market.

Both our mother company ACL Cables and our company manufactures same products and my aim is to manufacture unique cables which are not manufactured in Sri Lanka at the moment but imported from other countries. Manufacturing these cables will enable us to enter the Indian market and expand our business.

The Indian automobile industry is growing fast and this industry too creates many opportunities for local cable manufacturers. But none of the local cable manufacturers enter this sector. The construction boom in Middle-East countries have opened up a lot of opportunities in the international market.

Q: When entering a new international market what type of assistance do you expect from the Government?

Being in the private sector I don't think companies should ask for help from the Government for each and every move they make. When you are starting or scrolling a company you need help but when you are running a business you should not ask for assistance from the government for everything.

There are certain concessions given by the government for exporters in the country. But the government could further reduce taxes and make local exporters much more competitive in the international arena.

Q: What are the challenges companies face when promoting local brands in the international market?

If you are maintaining high standards and quality with proper standards certifications for your product or service there is no major barrier for promoting local brands in the international market.

Q: Today the world is moving towards a wireless environment and how will this impact your business?

I think this will take little bit time for the world to fully convert into a wireless environment. However it is important to be ready to face any type of challenge in the global arena. It is vital for the company to diversify to other avenues in the market just like companies such as Hayleys, Aitken Spence and John Keells in Sri Lanka.

Q: Today many companies are into CSR projects.

Do you think it is essential for companies to have publicity on these CSR projects? Many companies make huge profits and it is their responsibility to give back a certain amount of profits to society. Kelani Cables also embarked on several CSR projects and it gives emotional satisfaction.

I think it is important to give publicity for these CSR initiatives because it will be a good message for other corporates who do not engage in CSR projects and this will be a wake up call for them to embark on true CSR initiatives where they could give back to the society.

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Profile

Name: Brandigampolage Hemantha Prasanna Perera

Religion: Buddhist

Primary Education: Gamini Maha Vidyalaya Vavuniya and thereafter Royal College, Colombo.

Civil Status: Married, has two children.

Academic and professional qualifications: Holding a Masters Degree in Business Administration, Perera commenced his careerin the tea industry as a Tea Taster and auctioneer in 1984. He changed his careerpath when he moved to Keells Aquariums, wherehe progressed to become Director, Sales and Marketing.

In 2001, he was invited to jointhe Board of ACL Cables Limited and ACLKelani Magnet Wire (Private) Limited and in2003, was appointed to the Board of Kelani Cables Limited as the company’s ManagingDirector.

Very much a people-oriented personality who takes pride in leading from the front, Hemantha envisions to grow Kelani Cables from strength to strength, building adynamic local brand with a strong local andglobal presence.

Participated in the programme on CorporateManagement for Sri Lanka” (LKCM) held atYokohama, Japan organised by the Asian Forumon Venture Business governed by the AsianProductivity Organisation (APO) incollaboration with Japan Economic Journal andother organising agencies.

Current Position:

Managing Director of Kelani Cables PLC,

Director of ACL Cables PLC,

Director of ACL Kelani Magnet Wire Ltd.

Professional Experience:

Manager Tea Department at John Keells Ltd.,

Director Sales and Marketing at Keells Aquarium (Pvt) Ltd.