Business Rendezvous:

Racial integration, a must for lasting peace

Shirajiv Sirimane

The minorities should be provided with better racial integration even at this late stage to bring about a lasting settlement to the ethnic conflict. The Sinhala Only Bill paved the way for discrimination of Tamils and even today this problem is still evident to some extent, Managing Director St. Anthony's Group, Jeyaseelan Gnanam said.

One of the key leaders in this diversified Group of Companies, Gnanam says that when the Tamil community feels that there is no discrimination the conflict will cease. He also says that the authorities should give more emphasis on agriculture since it could bring about economic prosperity to the country.

"However the Government should step in to minimise post harvest loss and introduce new technology to increase yields," he said.

After successfully completing his higher education in United States, Jeyaseelan joined his father, A. Y. S. Gnanam as an executive director in the Group.

He plays a key role in moving the company to even greater heights. His father is today ranked among the 50 greatest Sri Lankans after Independence and his success is the most famous 'rags to - riches' story having started his business life selling scrap-iron.

With a career that ran parallel to that of Independent Sri Lanka, Gnanam prospered from his humble beginnings, to dent Sri Lanka the multi-billion rupee St. Anthony's Group.

Q: How did your father start his company?

Hailing from India he had neither affluent family background nor powerful school tie ups to boast about, but he seized opportunities at the correct time and created economic wealth. His first venture was when he started buying and selling scrap iron.

There were also a lot of surplus construction equipment and materials imported by the military, and as soon as the war stopped, all this material was left over. As there was a severe shortage of scrap iron in India at that time he was able to export big quantities to India.

Subsequently he started an import business by bringing in building material from India as all the surplus material available via the military had been exhausted. During the 1971 to 77 era when imports were banned he used his knowledge to manufacture nuts, bolts and other building material for the local market.

He also diversified to the apparel sector by starting to sell Syntex which enjoyed a monopoly. I still remember people standing in queues to buy the fabric.

Despite the restrictions, he managed to expand my business and moved into hardware, plastics, radios (Sanyo) and radio spare parts and later to the manufacture of S Lon PVC pipes which has scored many firsts in the industry.

The company was badly affected during the '83 riots, as all his businesses were attacked. However he remained in the country and re- built his empire.

He was 'knighted' by many successive governments and these were rewards for his successes.

Q: How is the group positioned today?

Today, the SA Group is involved in the manufacture of building materials including PVC products, industrial fasteners, cement, fibre cement corrugated roofing and flat ceiling sheets and light corrugated roofing sheets. The Group has also diversified into the production of textiles and in the recent decade the manufacture of apparel for the domestic as well as for export.

The SA Group employs over six thousand personnel, has a turnover in excess of Rs. 3,300 million (US$ 62 million) and fixed assets worth Rs. 1,500 million (US$ 28 million). The SA Group's manufacturing and trading facilities occupy over 600,000 square feet and the properties they occupy extend over 34 hectares which are valued at Rs. 1,150 million (US $ 21 million).

Q: Looking back what would you think was the most vital decision your father made?

I think it was his decision to get involved in the building materials industry in 1960s. He saw that the demand never stops in this sector and I think it was a step taken in the right direction. Today 61 per cent of the group's turnover is from the building materials industry.

Q: How is the company looking at the future?

Looking to the future, the SA Group is poised to enter the 21st century with diversification into property development and high technology products for export.

The group intends to continue dominating the export industry especially in heavy gauge knitwear and in the domestic market the manufacture of building materials including roofing, cement and PVC products with frequent modernisation and expansion utilising available technology. It also intends to add several new products to its range of building products within the coming decade.

Q: Do you think that some management techniques used by your father are practical even today?

Yes. Most of them are. My father used to walk around the company and got a first hand experience of his business. This is practical even today and administrators can learn a lot by moving out of their air conditioned rooms. He used to have Friday meetings with employees and gain valuable insights from the employees for the businesses.

Q: How do you see the local public transport system?

It is far behind as the country still banks on train and bus ignoring the potential in the ferry system for both passenger and cargo.

This system was successfully practised in the colonial era and today even in countries like Hong Kong and Europe. The local Dutch canals are the best means of public transport.

Q: What are the trends in the roofing industry?

Locally roofing tiles still hold 50 per cent of the market while 45 per cent use asbestos. The myth that asbestos are a health hazard is no longer an issue. There are the major players in the local industry and I am happy to announce that Rhino Roofing Products hold 42 per cent of the market share.

However in countries such as Thailand, Singapore and Malaysia the demand for roofing tiles are less and there is a tendency for steel roofing products.

The company recently invested on a steel roofing project as there is a new demand for this segment as well.

Q: Where would you like to spend your holiday?

I love the south coast and if its overseas I like a country like Singapore since it's a small country.