Biz Bud

Business flourishes down the line

Ramani KANGARAARACHCHI

When an industry passes from one generation to another it develops with innovative ideas and advanced technology, creating new brands.

It also gives a sense of pride to the entrepreneur encouraging him to go forward.

Sheran Wickramasekara

Managing Director, Genelle, Sheran Wickramasekera, was fortunate to inherit a cottage industry manufacturing shoes under the name Sinindu, from his in-laws many years ago. However, this little cottage industry showcased the elegant footwear branded as Genelle in the export market later on. He was interviewed by Daily News Business.

Wickramasekara was the youngest in a family of eight children He had his education at Thurstan College, Colombo and continued his higher studies in the field of Accountancy. In the meantime, he joined the private sector and obtained experience for a few years. In 1982 he took up a position as an Accountant, which he held for four years.

HUGE CHALLENGE

On his return to Sri Lanka his in-laws requested him to take over this business. He said, “It was a huge challenge because I did not know anything about shoe making. At the same time I did not want to let that industry, close down which had been carried forward with much care and effort over a long period of time,” he said. My in-laws had only seven employees and they supplied shoes to the Bata Shoe Company. Initially I faced much difficulties as the samples I prepared were repeatedly rejected.

However, I continued without getting discouraged, he said. Wickramasekara invested about Rs. 3 million to develop the business at the beginning and finally succeeded.

HIGH DEMAND

He was one step ahead than several other shoe manufacturing companies at that time and his products were in high demand at several leading fashion boutiques in Colombo. He then realized the importance of developing a brand of his own and Genelle emerged as a result. His first three containers of shoes were exported to UK in 2006 under the new brand name.

A shop in Mount Lavinia, Lakmal Arcade was also opened to make available the Genelle branded products to the local market.

Lakmal Arcade is a fashion store for ladies and children’s footwear of high quality coupled with comfort, elegance and affordability to our customers in keeping with our motto - ‘Treat for your feet’, Wickramasekara said. He has provided about fifty direct jobs for young men and women in the factory. The company manufactures five- thousand to seven-thousand pairs of shoes for ladies, gents and children per month.

Women at work in the factory Pix. by Sumanachandra Ariyawansa

The product range covers fashionable evening wear to casual sandals and slippers and the styles cater to different age groups. The Kiddos by Genelle in the children’s range at Lakmal Arcade reflects the playful nature of childhood in its host of attractive colours and designs. All his footwear is manufactured locally using raw material and accessories imported from Thailand.

SIGNIFICANT MILESTONE

Another significant milestone of the company was the setting up of the heels manufacturing plant which saves a lot of foreign currency. One of the most costly items we imported was the moulds. I recently imported a injection moulding machine plant from Taiwan at a cost of Rs. 3.5 million for the purpose. It is necessary to have separate moulds for various designs requiring a considerable investment.

The raw material we use is the plastic waste such as discarded computers and typewriter ribbons. We recycle them and use them again to manufacture a range of shoe moulds.

Now we undertake orders to manufacture heels for other shoe manufacturing companies as well. If we get support from the government to develop this industry it will be another profitable venture and we could provide more employment opportunities to poor people in this area.

Developing an industry of this nature in our country at a time we are facing a global crisis will greatly benefit the people, he said. Elaborating on the statistics of footwear requirement in the country, he said that our country needs about three million pairs of heels per year based on our population which costs 30-40 dollar cents each. All this money could be saved if the industry is protected.

Asked about the challenges he faced at present, he said that the cheap imported footwear coming to the market illegally is the main challenge.

Despite all these challenges, he is determined to make his brand Genelle the best known in Sri Lanka and abroad.

IT/BPO industry to support ‘Year of English and ICT’

The Sri Lanka Association of Software and Service Companies, SLASSCOM the unified national IT/BPO industry association will support the presidential initiative to enhance the IT and English literacy in the country by providing computer facilities to one-hundred rural schools, a media release from SLASSCOM said.

The ‘Year of English and IT’ has been launched as a major initiative of the Government to help Sri Lanka meet the demands of the 21st century in skills and capacity, making the availability as a life skill for the rural sector.

President Mahinda Rajapaksa said his Government lays emphasis on the unmistakable need to urgently equip the people, especially the youth, with proficiency in the English language on the one side and to provide them with access to computers and internet facilities, through the rapid development of use of information technology, on the other.

“I pledge the total commitment of my Government to accelerated action to widen the knowledge of English and IT in Sri Lanka, and look to this Year of English and IT to lay the groundwork for tangible success in these vital fields for the progress of Sri Lanka,” the President told the event organized to launch the Year of English and IT.

Chairman SLASSCOM Ranjit Fernando said, “The presidential initiative is a very timely and absolutely crucial initiative to lead the country towards a knowledge driven society.

IT literacy and English language competence are essential for success in the future. We are delighted to be part of this initiative and pledge to support the national objective of 50% IT literacy in the country”.

Fernando coordinates the IT initiative of the Presidential Task Force set up to drive the “Year of English and IT” initiative of the Government.

Leading IT/BPO companies such as Intel, Virtusa, Microsoft, Dialog, JKCS, hSenid, Amba Research, Eurocenter, IFS, WNS and many SLASSCOM member companies have proactively initiated diverse Corporate Social Responsibility programs giving impetus to the rural schools and the educational system to support an IT literate future.

SLASSCOM acts as a catalyst of growth of the Sri Lankan IT and BPO industry by facilitating trade and business, propagation of education and employment, encouragement of research and innovation, and by supporting the creation of a progressive national policy framework, the release said.

AP Enterprise Software Market to reach $30b by 2012

The Enterprise Software market in Asia Pacific excluding Japan (APEJ) is estimated to grow from US$18.2 Billion in 2008 to US$30 Billion in 2012.

This represents a Compounded Annual Growth Rate (CAGR) of 13.1% during this period, says the latest research report titled “Different Hues of Growth: Enterprise Software Market and Forecast 2007-2012 by Springboard Research, a leading innovator in the IT Market Research industry.

Key findings from the report released put China and Australia as the largest software markets in the region with China the fastest growing at a CAGR of 17.7%, nearly double of Australia’s rate of 9.1%.

India will surpass South Korea by 2011 to become the third largest Enterprise Software market; ultimately representing 15.6% of total APEJ market spending by 2012.

A shortage of IT skills, insufficient local vendor presence and software piracy are among the leading market inhibitors.

The report adds that because of the ongoing financial crisis, there will be a slowdown in infrastructure projects involving large middleware licence sales over the next two to three years. However, Springboard does not expect dramatic drops in IT spending, particularly ongoing Enterprise Software-related spending linked to multi-year transformational projects.

“Enterprise-wide SOA initiatives that are not directly linked to well-defined, measurable business imperatives will be far tougher to justify in the current economic climate,” Barnes said.

India eases restrictions on import of toys from China

Within less than six weeks of banning the entry of Chinese toys into India, the government eased restrictions on their imports, a decision the Indian toy industry said will not have impact on the domestic market.

According to a Directorate General of Foreign Trade (DGFT) notification, toys conforming to international health safety standards can be imported from China.

The government on January 23 banned the import of toys from China on health grounds.

According to the notification, the import of toys from China will be allowed if they conform to the standards prescribed in “ASTM F963” or “ISO 8124 (parts I-III) or IS 9873 (parts I-III)”. These regulations deal primarily with safety and health hazards.

Beijing had expressed its concern to Indian authorities over the ban.

Chinese officials could not be immediately contacted for their comments on the government’s decision to ease import restrictions. A response to a fax to the Chinese embassy in the capital is still awaited.

Toys Association of India President Raj Kumar said, “They (the government) lifted the ban but it is conditional. It will have no effect on the Indian industry”.

PTI