Bank support for young entrepreneurs insufficient

Harshini Perera

Young Entrepreneurs

As Managing Director and young entrepreneur of Idac (Private) Limited, Dr. M. Rohitha Silva has been catering to the high-end market in Sri Lanka offering total solutions in air conditioning and generators.

He has been in the industry providing consultancy, support services for domestic and commercial air-conditioners, commercial and industrial refrigeration and special services for generators.

He is also engaged in manufacturing ducts for air-conditioners.

Excerpts of the interview

Q: How did you come up with your enterprise?

A: Originally a different person started the business. As the business grew my friends and I took over the company under our management in 1996. During that time the profit was shared by all of us and in 1998, we came to an agreement and I decided to own the company fully. ‘I bought the shares of the company and acquired it fully under my management.

Q: As a young entrepreneur what were the challenges you faced?

A: Sri Lankan entrepreneurs can be the most innovative people on earth if the banks in the country support them. The commercial banks in Sri Lanka have not been supportive towards the business community and the support given by the banks at present to industrialists is insufficient.

The other problem I encounter is less support from Government institutions such as the Customs and the Labour Department. These institutions are harassing many genuine industrialists. As a policy we do not bribe people in those institutions and as a result we are being harassed.

Q: What are the strengths of your company?

A: Initially, we let PriceWaterhouseCoopers to come and evaluate our strengths about the company. By doing that we wanted to manage the institution well. Human capital is an essential component in the success of any institution. Having understood that Idac (Private) Limited invested in human capacity. We sent our employees to India, China, Singapore and Malaysia to improve the functions of the company.

The company is well-equipped with an accounting package. We are also in the process of acquiring ISO 9000-2008 standardisation. We are to conclude the process by the end of July this year. After that we will be the first Air-conditioning company to receive ISO standardisation in Sri Lanka.

Our focus since the inception of the company has been to satisfy the customers. Our customers depend on us for five to eight years once they purchase our equipment.

Therefore, we are equipped with one of the best customer services. The finance and management of the company is well geared with extra stocks and spare parts.

We have also quoted for international projects with foreign contractors. We have engaged in projects in Djibouti, Vietnam and India.

Q: What was the growth of your company and how do you foresee the future of the industry?

A: We had a 100 percent growth for each year as we cater only to the high-end market.

There should be indicators to differentiate the classes of air-conditioners. They should specify the health and energy indicators when importing an air-conditioner. The Government should then impose duty structures according to the classes of the equipment.

Idac has developed the technology to maintain the quality of the air in an air-conditioned room. The technology recovers air from the air-conditioner and supplies it with oxygen. The air can be reused as the end result.

Q: As an entrepreneur what are the strategies used by you to manage the enterprise?

A: We have a structural system led by a structural management in which each division of the company runs as a profit centre. Our company will invest funds and resources to upgrade these divisions annually. The electronic reporting system that we use, helps the company to function well.

Q: How were you supplied with capital initially?

A: Four people including me took over the management of the company and as the company was profitable, we shared the profits. When they withdrew from the company I paid them the value of their shares and took over the company with 100 percent ownership.

Q: What are your aspirations?

A: Two personalities inspired me in this league. One of them is the former Malaysian Prime Minister, Dr. Mahathir Mohamed who visited Sri Lanka recently. The other person is Donald Trump. I look at them whenever I have to face a challenge about my business and learn how they had faced similar challenges.

Q: What are the strategies you adopt to enhance the efficiency of your employees?

A: The company has empowered the staff with authority and management decision-making towards the function of the company. Our main policies are decided with the staff. We consider the bond between the staff and the management as a chain where one has to do one’s job for the other to do his/her job successfully.

Each person is important for the function of the company and they are an authority of their own.

Q: What is your goal in business?

A: I need to have a base of satisfied customers and to run the business profitably. I need to bring the company to a state where it can work with any international project.

My expectation is to manage the business professionally and to make our staff proud of working at Idac.

Q: What are your future plans?

A: The company expects to be the first total air-conditioning solution provider in Sri Lanka. We need to go further in the business and work with international contractors as their preferred supplier.

We expect to expand our services to the Maldives by setting up an agency in the future.

At present we are into a joint venture with an Italian company to manufacture ducts. We are looking at the export market for duct manufacturing than the Sri Lankan market.