Ramani Kangaraarachchi

Once a mechanical engineer responsible to take the final aircraft out from the factory at Rolls Royce in Canada later ended as a reputed property developer in his own country Sri Lanka.

He has achieved even better results today in the property development industry with an asset base of Rs 450 million which he is proud of. He is the Chairman of Superior Palayakat Sam Vakeesan.

Q: Having studied in the field of mechanical engineering what made you to change your pathway in the middle and select the field of construction. Can you tell us about this journey?

After leaving school, I worked for some major developers in Colombo and later went abroad for higher studies in India. Then I went to University of Toronto in Canada and qualified as a mechanical engineer.

There I got the opportunity to join the reputed Rolls Royce Company in Canada as a control engineer. It was a very responsible job and my signature was the final authority to take a new engine out from the factory. I worked there for six years.

But I missed my cultural values and the family back in Sri Lanka and decided to come back. Then I looked for some joint ventures later started building individual houses then gradually moved to town houses and then condominiums.

Q: What are the projects you have done so far in this field?

So far I have done five major projects. They are the 35 houses at Torrington. 28 houses at W. A. Silva Mawatha. These houses are already sold. Then 99 houses at Alexandra Mawatha, is a unique concept with all the services provided for houses.

It is just like you are living in a five star hotel room of your own. Even there is a doctor and a place to leave the children if you want to go somewhere and come .

Everything is there at your door step. This project will be completed this year and a few houses only available. Other projects include 28 houses at Saranankara Road and 12 houses at Lower Bagatale Road which will be completed in 2009.

Q: What are the unique features in these projects?

There are several unique features. One is we are the only people in this field who give a pay back guarantee for all the clients. If they do not want the house after sometime we purchase it from the client with an added value. Then he will not lose anything.

Also I am very particular about the quality of the houses because if something goes wrong I know the image of my company will be affected. So I am very careful although I pay a little more for certain aspects I do an excellent job. Another thing is that I never mortgage the property to get bank loans because then the cost of production goes up and the client has to pay interest for that as well.

The full amount is paid and I give that benefit to the client so they have to pay a lesser amount for the property.

Q: So how do you manage with funding?

I have very reliable clients and they have always helped me through investments during difficult situations. I am very grateful to them. At the moment I need more investments and are looking for investors for my expansion plan.

Q: Do you think this is a profitable industry despite the prevailing economic situation?

Yes. although there is a turbulent situation the property development market will never go down, because more and more people are coming to the city everyday. But the Government and financial institutes should support the private sector to face this challenge.

Property developers do not have to come to the banks when they are in the peak. They only go for bank loans during crucial periods but at that time financial institutes are very reluctant to help us.

But houses done by the private sector are solid unlike the Government built houses. We have come the hard way. I and my wife who is also a director work very hard and at the same time we enjoy our work very much.

Today we have evolved into a bigger concern and set a landmark. We have a separate marketing division at the new office in Gregory's Road.

Recently we entered the UK market through a joint venture which is a BOI project and it is situated out of London. It will be a single houses project according to the town planning in Cambridge. We have already purchased the land and plotting is under way.

Q: Is there any possibility to enter the Indian market as it is one of our neighbouring countries where there is a construction boom?

A: No, because it is a very tough market to enter. Because India develops the whole area along with the housing project, roads and other infrastructure as well. So for us it is difficult.

Q: Is there a shortage of manpower for your projects?

Yes, finding skilled people is difficult. But I have about 450 employees including sub-contractors. We give them a good salary, they are well looked after and most of them joined the company from its inception and trained by us. So they do not leave the company and I don't have a serious problem.

Q: How do you find your raw material and have you got any plan to diversify into other related businesses?

All my fittings are imported specially for our company direct from our suppliers' factory so we can reduce lot of costs and give more benefits to our clients. I always keep stocks required for one month to avoid delays in various situations. But I have no plans to diversify at present. But I am expecting to expand the business. I have purchased a land in Mahabage and now the plotting is in progress.

Q: There is a shortage of cement in the market currently . How do you face this situation.

Yes, there is a problem. I had to stop work for a month even when I had some stocks for my projects.

Q: What is your message to the people in this industry?

My message for them is to "Buy Sri Lankan and Be Sri Lankan" and not to get involved in politics.

Q: You have a history spanning over 100 years and with businesses across a wide range of sectors in Sri Lanka and overseas? What is the position of popular brand of Palayakat sarong?

It is not available in the Sri Lankan market because the cost of production here is too high and we cannot sell it for the real price here. But it is doing well in India.