Laugfs Holdings Limited Managing Director Thilak de Silva

Laugfs competes with multinationals

Sanjeevi JAYASURIYA

There are a few truly Sri Lankan companies that the country could be proud of and certainly Laugfs Holdings is one of them. Laugfs Holding Limited has emerged as one of the leading local conglomerates with its diversified portfolio of businesses.

Laugfs is a household name and it is synonymous with quality. The strategic directions the Laugfs Holdings Ltd has taken over the years enabled to change the everyday lives of Sri Lankans.

Laugfs Holdings Ltd consist of eighteen subsidiary companies and Laugfs Gas Plc, Sunup Supermarkets, Laugfs Engineering, Laugfs Leisure, Laugfs Property Developers, Laugfs Restaurants, Laugfs Petroleum, Laugfs Rubber are some of them.

Laugfs group as a whole, in all their wide and diverse business landscape employ more than 1,200 workforce as at present.

Daily News Business interviewed Laugfs Holdings Limited Managing Director Thilak de Silva for this week’s column.

Here are the excerpts of the interview:

Q: Could you give us an overview of how you entered this field and how you came to this position?

A: The concept of a new business model was given serious thought among some friends and in 1994 formed a company that converted vehicles to run on LPG. The company operated very successfully making high profits until 2011. The company was a unique concept and we were the pioneers in this effort. I am the shareholding Managing Director of Laugfs Holding Limited at present. I was an investor director from the inception and I am involved with the Group full time now.

Q: As a local company what are the strategies to adopt in meeting the challenges of competition?

A: It is not easy for a Sri Lankan company to compete with multinationals. We were successful in delivering what people want. This is the secret formula.

Q: What is the present status in the local diversified companies?

A: We as a Sri Lankan company is well accepted in the local market. We started our business in 2001 with the entry into the LP Gas domestic sector. We were able to secure 10 percent of the domestic LP Gas market within the first year of operation. We grew year by year and at present has a 32 percent market share of this sector. We have 100 percent in the local auto gas market.

Being a truly Sri Lankan company and having our own identity helped us to come to this position.

Q: What are your views on consumer marketing in Sri Lanka?

A: There is growth in consumer market in terms of volume and revenue. We need to have free market economy in absolute terms similar to Malaysia and Singapore. When compared to Malaysia which has a similar population as Sri Lanka our LPG consumption is far less than Malaysia.

Q: What is your greatest achievement in business?

A: My greatest achievement is to enter the LPG business in Sri Lanka. This sector was dominated by multinationals and breaking this barrier was a huge success.

Q: What is your advice to young readers who are interested in entering this field?

A: Entering into any field needs courage and you should prepare to delegate authority. The success in any field lies in hard work and the initial 10 years is the crucial period. The sky is the limit if you could survive this period of time. There are number of role models in Sri Lanka if one needs to follow.

Q: What are your interests and hobbies?

A: My interest is in Laugfs and my hobby is working with people at Laugfs. I really enjoy what I do and I am addicted to this working environment.

Q: Where would you like to spend your holiday in Sri Lanka and what is your most liked country?

A: In Sri Lanka my best place is Anuradhapura and I also like Dambulla. When it comes to a foreign country it is Switzerland.

Q: What kind of an investment plan does your company have in mind for the future?

A: We have a lot of plans for the future. However, we are restricted to disclose any initiatives now unless we disclose it to the CSE in the first instance. We want to be the number one energy company in Sri Lanka. We work hard to become a regional player as well. Laugfs Holdings Ltd is having its subsidiary operations already in Australia and in time to come it will have its presence in South Africa, Bangladesh and Cambodia.

We are focusing on venturing out of Sri Lanka where we have lost opportunities for the past 30 years. This is the time for Sri Lankan companies to be taken into the region.

Q: What is your value proposition?

A: Always be a Sri Lankan and buy Sri Lankan

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