Emerging Entrepreneurs
Local contractors need more projects
Harshini PERERA
With specialized skill in constructing swimming pools and waste water
management systems, AKK Engineers has set an example for high quality
construction in the country. The company is headed by a professional and
well experienced person with a professional staff to provide the very
best to their customers. AKK Engineers Chairman Dr Rohan Karunaratne was
interviewed for the Emerging Entrepreneurs column for this week.
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AKK
Engineers Chairman
Dr Rohan Karunaratne |
Excerpts of the interview
Q: How did you come up with your enterprise?
A: I passed out as a young engineer from the university in
1981 and worked three years in Government and private organizations. In
1984, I thought of starting my own construction company. I joined one of
my batch mates and we initiated the company, AKK Engineers (Pvt) Ltd. We
specialize in civil construction and mainly we are concentrating on
swimming pools, water proofing chemicals and waste water treatment.
Q: What were the challenges you faced?
A: At the time we started the business, the construction of a
swimming pool was very expensive and at times expenditure for a swimming
pool was high that people could not think about having a swimming pool.
As engineers we came out with our own design to make it affordable.
We received awards for designing low cost swimming pools in Sri
Lanka. It was well accepted by people making our way clear in the
future.
It was very difficult for us to go for bigger construction projects
due to financial constraints. We did not have good bank facilities at
the initial stage. We started with a limited capital and the financial
difficulties were blocking us in taking over many contracts and going
for tenders.
People recognized our capacity gradually due to our professional
qualifications as engineers. I would say we had a slow growth at the
starting point due to financial difficulties.
Three years ago the entire country had to face a critical problem of
not having enough work but we had to maintain our staff even during the
economic downturn. During the last two years, we really had to suffer
paying salaries but not having enough work to maintain the companies.
One of the main challenges from this economic situation was that
contractors started quoting low rates for projects more than what they
could do.
Those who take the low quotation put themselves in trouble as well as
other contractors. We could not do the construction work for low
quotations.
We have seen improvement in the industry at present but it has not
yet fully recovered. We expect it to recover gradually in the future.
Q: What are the strengths of the company?
A: A highly professional staff is working for us. We are into
both designing and building the projects. A client can save a lot of
money in coming to us. We have structural engineers and architects
in-house along with civil engineers. We therefore can set a competitive
price and I believe this is the success of our company.
We have engaged in constructing a housing project in Galle for
Government employees. We have been involved in lot of hotel projects.
We are currently engaged in new projects at new hotels such as Deer
Park in Giritale.
We are specialized in swimming pools, water and waste water
treatments. The competition in this area is less compared to civil
construction. As we are in a specialized field, we could get more
projects.
We have also diversified to the manufacturing sector such as
manufacturing plywood doors and we have been agents for certain
electrical items. We have also shown our presence in specialized paint.
Q: How do you manage the company?
A: Each sector of the company is looked after by top managers
of the company. We have six top managers who take the responsibility of
a sector. Even in our new diversification to hotels, each hotel has a
management staff to manage separately while we promote team work among
our employees.
Q: How did you supply with capital initially?
A: Even today we have certain constraints in finances compared
to the biddings of international contractors and major construction
firms in the country.
The capital we invest at that time was very low. The investment was
Rs 200,000 but today our capital has gone up to Rs 200 million during
the last twenty years.
Q: What are your aspirations?
A: It was my education which led me to flourish in this
industry. I had to either work as a civil engineer or run our own firm.
I came out with the idea of starting my own company. I have today become
a person who can diversify into different sectors in engineering.
We are promoting sustainable construction industry in Sri Lanka.
Contractors using these sustainable measures can save energy, water,
protection of environment and maintain easy building. It may not be easy
to promote sustainable construction industry in Sri Lanka initially.
Q: What are the strategies you adapt to enhance employee
efficiency?
A: We encourage employees by engaging them in projects in a
competitive way. At the same time we give them a free hand to manage the
projects.
We will be monitoring the finances but giving them the necessary
authority to work on their own. They are happy with the flexible method.
It encourages them immensely.
Q: What is your future plan?
A: We have diversified into various fields such as
manufacturing, engineering research and development. We have recently
diversified into the hotel sector. We own three hotels in Kataragama,
Habarana and Passikudah. We are expanding the facilities in the
Passikudah hotel with an additional 50 rooms. It will be an over Rs 150
million investment project. We will take more interest in developing the
hotel sector in the future.
Q: What is your goal in business?
A: We need to be a high quality product providing construction
company specialized in waste water and swimming pool sector in the
future.
Our main purpose is to be a high quality construction company while
setting our standards towards customer satisfaction.
Q: What is the support you get from your family members?
A: My father was the Chairman of the company and my wife
shoulders a big responsibility in the diversified sectors of the
company. My mother too has been helping me in developing the company.
Q: What is the support you expect from the Government?
A: We expect the Government to distribute a reasonable amount
of work among local constructors while involving foreign parties.
International construction companies have become the competitor for us.
We expect the Government to control it to a certain level.
There is a restriction in going out of the country for construction
work.
A local company cannot cater to the international market alone
without the support of the Government. Many of our contractors have
shown capability in the construction industry and the Government can
help them by identifying them.
That is one of the major expectations we have from the Government.
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