Peace motivates patriotic entrepreneurs:

Fantasia Elastics caters to high profile apparel markets

Ramani Kangaraarachchi

Ashraff Hameed

Sri Lanka is now moving in a different direction where people appreciate using local products of high standards instead of cheap imported products.

The dawn of peace has also motivated all patriotic entrepreneurs to take the country forward by expanding their companies to make the country self-sufficient in their relevant areas.

Some Sri Lankan entrepreneurs have done wonders in the past and their achievements were not even heard of in their own country.

Managing Director, Fantasia Elastics (Pvt) Ltd Hameed Ashraff supports production and infrastructure facilities to manufacture over 2,000 types of elastic and trims for lingerie, intimate wear, casual wear sports and many other categories of high profile apparel for international buyers such as Marks and Spencer, NEXT, American Eagle Outfitters, Target Tesco, Columbia, NIKE, Reebok, Lands End and Victoria Secret. The company’s annual turnover is USD 5 million at present. He expects to double the present annual turnover in two years.

He was interviewed by Daily News Business.

Ashraff who hails from Matara in a family of five children had his school education at Arthusa College, Colombo.

Straight after school he decided to join a company owned by one of his uncles. After gaining six years’ experience he was confident of setting up a business of his own.

Modest beginning

“It was a very modest beginning in 1989 with an investment of USD 25,000 and 15 workers at a rented out premises in Ratmalana, he said.

“Our output at the beginning was only two million metres of elastics and now it has reached eight million per month. Today, I am very proud that I have provided employment to 300 people as the owner of a 100 percent local industry while saving a huge amount of foreign exchange for the country.

The company also produces different types of elastics (narrow fabric) trims of international standards in the shortest possible time.

This helps the country’s apparel industry in a big way, because the lead time is very crucial in the apparel industry.

By using our products the apparel industry can reduce the time they spend from manufacturing to shipping while adding more local value to their products, he said.

How soon you can supply this product is the question that their clients ask them and the orders go direct to the company which is faster and stronger, he said.

Progress

Elaborating on the progress of the company, he said that in 1995 the company went for the first expansion by shifting to the present two-acre land premises with an 80,000 square ft building and increased the workforce to one-hundred people.

“The quota era helped us very much to attract buyers and in 1989 we did very well with the growth of the apparel industry.

The company obtained BOI status in 2001. Ashraff thereafter invested USD 2.5 million on technology in 2002 as the second stage of expansion which he believes was a wise decision he made.

“Had I not made that investment the company would have perished by now”, he said. The State-of-the-Art manufacturing facility imported from Switzerland and Italy which complemented the dyeing and finishing machinery transformed the company.

The dedicated Rand D and Dye-House teams comprise qualified experienced personnel to meet today’s demanding standards in narrow fabric in every aspect.

Barriers

Employees at work. Pix by Sumanachandra Ariyawansa

Asked about the barriers, he said that most of the financial institutions were reluctant to provide loans at the time, considering the huge quantum of money and the fact that it was a stand-alone-company. Finally he contacted the top management of one bank and received Rs. 72 million which was a great support, he said.

The right decisions made at the right time, dedicated workforce and the right focus towards its potential has been the secret behind his success over the years.

He believes that one of the greatest assests Fantasia has is its dedicated and capable workforce who contributed to bring the company to this standard.

He is also grateful to their loyal customers who have been with Fantasia over the years giving strength and creating the need to go on to more expansion and growth.

The company will celebrate its 20th anniversary this year. Ashraff is now looking at niche markets to further expand its international market. India has already made inquiries about the possibility of buying their products.

He believes that the Government should have a more efficient clearance system with the customs simplifying the procedures.