Innovative products for niche markets:

Entrepreneur protects traditional values of coconuts

Ramani KANGARAARACHCHI

Suresh Silva

Coconut is one of Sri Lanka's traditional crops, which earns foreign exchange. But today coconut estates are blocked out and sold to build houses. However, some entrepreneurs are still determined to protect the traditional values in coconut.

CEO, Cocos Lanka Exports (Pvt) Ltd Suresh Silva, an entrepreneur believes that 'Coconuts-a natural solution provider for a better environment'. He earns an annual turnover of 35 mn USD by exporting more than 20 varieties of coconut products. He has provided employment to over 1,500 people despite many challenges. Suresh Silva was interviewed by Daily News Business.

'Silver Mill'

An old boy of St. Joseph's College, Colombo, Suresh is the eldest in a family of four children. He obtained a degree from a University in California after completing his Advanced level examination in school. "It was my grandfather Anthony Silva who opened the first ever desiccated coconut factory in the country named 'Silver mill' in the Coconut Triangle in 1920."

A philanthropist who had entrepreneur skills he hails from Katana. Although he started from humble beginning through his talents he gradually expanded and diversified the company into other areas by exploiting the coconut, and as a result it grew into a group of companies and today there are eight companies under Silver Mill Holdings, which records 4-5 percent growth annually, he said.

Suresh returned to Sri Lanka after pursuing higher studies abroad and joined the Coconut Development Authority to familiarize himself with the industry for a short period. Thereafter, he joined BCC Lanka and gained more experience in coconut related products. In 1983 he joined Silvermill Holdings as a junior executive. In 1990 he took over the senior position. Suresh became the CEO eight years ago when Cocos Lanka Exporters(Pvt) Ltd was started as a subsidiary company of Silvermill Holdings.

Coconut husks

The Company was incorporated to add value to coconut husks by converting it into an array of coir-based horticultural products. "There is a bigger demand for fibre products and it is more profitable. "We have invested heavily on research and development and research is carried out by our in-house staff as well as the University of Moratuwa and other recognized research institutes.

"We have introduced a number of internationally patented unique products", he said. "Our latest product is Coco-Bio which is the most effective way to clean oils. It was jointly developed by Ueda Environmental Solution (UES) and the Sri Lanka Industrial Technology Institute. This product has exceptional oil absorbent properties, making it an extremely effective cistern purifier and cleanser of waste-water impurities.

It absorbs most oil and very little water which can be mass produced at low cost giving it a promising future as a cistern waste water oil absorbent product". Cocos Lanka has specialized in producing soil substrates for tomatoes, cucumber and strawberries.

With long experience in working directly with growers worldwide, it has successfully developed coco slabs grow bags that produced enhanced yields. A range of coir based potting soils have been developed and are marketed to garden centres in different packing styles for hobbyists.

Coir husk chips are also produced for potting soil producers or growers to make their own soil substrates. He said that the company is a leading manufacturer of coir pith products in Sri Lanka and concentrates on niche markets and green products.

Big demand

The emerging threat of global warming and the big demand for petroleum based products to fulfill the world's energy requirements have created opportunities to develop and market alternative energy solutions.

Therefore, we focus on bio-fuels. We use our experience in agro business, plantation management and technology to maximize the advantage of power generation using bio-fuels as a renewable source, he said.

The Company has introduced a product known as 'Osen Guard', an organic Anti Foulant Marine Paint Additive. It is an eco friendly additive to marine paints for ocean going vessels.

Coconut products being processed in the factory at Lolluwagoda

Adhesion of marine living organisms such as barnacles creates a major problem for ship and fishing boat owners.

Osen Guard gives excellent results by almost doubling the period of anti-foulant effects by adding five percent by weight to conventional ship bottom paints, and it has much potential in the dry docks, he said.

He said that the Government' farm protection policy is one barrier. When the prices go up artificially it affects the market adversely and we become less competitive. But we manage despite the global recession.

We negotiate with the Government to reduce duty to overcome this barrier. Sri Lanka is also lagging behind in high technology agriculture.

There are many secrets behind his success. "We have three trade unions but we are flexible and are prepared to listen even to the minor staff.

Changes

They are well motivated and productive. We accept changes", he said. Our income and expenditure are very transparent and open to all like in a Public Quoted company although we are a family based company. Ten percent of profits are shared among them.

His future plan is to improve on value addition and be a green company. With his worldwide clients such as Toyota and Nestle and islandwide dealers network, he foresees bright prospects.