Biz Buds

Unity plays a key role in business

Ramani Kangaraarachchi

Unity plays an important role for the success of any business or family.

Seyed Ariff Refideen

Daily News Business interviewed a Biz Bud who has achieved success in business through unity in the family. It is a journey from a cottage industry of manual paper bags to a fully automated paper packaging solution for all industrial and export requirements.

Managing Director Abdulla Group, Seyed Ariff Refideen who was born and bred in Colombo is the second son in a family of eight children. Having completed his education at Zahira College, Colombo Ariff was destined to take over the business of his father at the age of 21 following his father’s untimely death.

He did not get the opportunity to pursue higher studies after his Advanced Level examination because all his younger brothers and sisters were of school going age.

Golden rule

Fortunately he had been groomed by his father to handle the operational part of the business.

Although it was a little beyond his age he took the challenge.

“My father’s constant and main advice was maintain the unity of the family,” which we follow as a golden rule.

I educated all my younger brothers while looking after the business. Today, the Board of Directors consist of six brothers, the eldest being the Chairman and the two younger brothers qualified as Chartered Management Accountants. I continued my higher studies thereafter, he said.

“My father also advised us to respect the value of customers and spend hard earned money carefully which I have followed.

He never left any liabilities for us at the time of his demise. I too never went for huge bank loans but invested the profits to expand the business.

I am happy that our company has a strong asset base and is able to face any situation, he said.

Product Range

The product range of Abdulla Group includes Multiwall Paper Sack for cement, tea, milk powder, carbon and desiccated coconut exported by leading exporters and local manufacturers.

The products are branded as AB Tea Sacks and Exercise books.

Although the company expanded, Ariff did not give up manufacturing the initial product Brown paper bags which was started as a cottage industry.

The Company has a state-of-the-art manufacturing facility for all products in Mattakkuliya.

Men at work in one of the factories Pictures by Saliya Rupasinghe

The popular pesticides, “Run Rat” and “Run Bug” were also introduced by the Abdulla Group at the inception by the founder and a small percentage is still being manufactured, he said.

World Star 2007

The Company was awarded “World Star 2007” by the World Packaging Organization Sweden, “Asia Star 2007”, by Asian Packaging Federation Singapore and “Lanka Star Gold 2007” by the Sri Lanka Institute of Packaging, for their latest innovation, “Double Closure Tea Sack.” Ariff who invented this product has got the patent for it.

The Abdulla Group is also a member of the Ceylon Tea Traders Association, Sri Lanka Institute of Packaging, National Chamber of Exporters and Sri Lanka Printers Association.

When asked what he feels about the Company today, he said “Today, we have grown several fold. We did not have imported high quality papers or modern technology those days.

I remember using used bags to produce new bags. At present we have a sizeable market share for bulk tea bags and exercise books.

We have expanded our market into countries such as Vietnam, Kenya and India.

It was a gradual progress earned as a result of our hard work, unity and proper financial management which we are proud of. Our future plan is to take the company to the corporate level,” he said.

Hayleys turnover up 14% to Rs 24.8 billion

Post-tax profit drops 17% to Rs 571 m in 3Q:

An intensification in the third quarter of 2008-09 of the impact of the global economic downturn on some of its businesses has taken a significant bite out of the nine month profits of Hayleys PLC, the manufacturing and export focussed Sri Lankan multinational conglomerate.

Despite a 14 per cent growth in turnover to Rs 24.8 billion by the end of the third quarter of the year, the diversified blue chip’s profit before tax for the nine months ending December 31, 2008 declined 17 per cent to Rs 1.1 billion, while post tax profit from continuing operations dropped 34 per cent to Rs 647 million.

According to results released to the Colombo Stock Exchange, profit after tax and losses from discontinued operations (principally consumer durables) for the period reviewed was down 17 per cent to Rs 571 million.

Losses from discontinued operations were Rs 76 million against Rs 299 million last year.

There will be no carry-over of losses from Consumer Durables beyond the financial year ending March 31, 2009.

Profit attributable to equity holders of the company declined 16 per cent to Rs 184 million.

Hayleys Chairman and Chief Executive N. G. Wickremeratne said, “The impact of the international economic downturn, which gathered momentum during the (third) quarter, affected several of the Group’s businesses.

He said businesses in Global Markets and Manufacturing saw modest relief from a slightly improved exchange rate and lower energy costs in the third quarter of the year.

‘Public Awareness Program on Islamic Financing’

LOLC, an innovative Financial Solutions provider in Sri Lanka offers a range of fully Shari’ah compliant financial products (financing done in accordance with Islamic principles) through its subsidiary Lanka ORIX Finance company Ltd.

This is the only Finance Company in Sri Lanka registered under the Central Bank to be granted approval to mobilize Shari’ah compliant deposits.

The company with their separate Islamic Business Unit (IBU) ‘LOLC Al-Falaah’ for Islamic Finance Solutions, which ensures that these products are managed in strict compliance with Shari’ah laws offers Ijarah (Leasing), Murabaha (Trade Financing), Mudharabah (Profit Sharing Investments) and Diminishing Musharakah (Property Financing) to the public.

In their effort to popularize these products among the public in the regions, ‘LOLC Al-Falaah’ conducted a ‘Public Awareness Program on Islamic Financing’ at the Mahaweli Reach Hotel, Kandy on Saturday.