Lankan Bajaj trishaws in Africa
By Naomi Gunasekera
Sri Lankans pioneering the use of trishaws in Africa? A Himalayan task,
one might say, but Colombo's David Pieris group is achieving just that
in Tanzania.
Since 2000, the David Peiris Motor Company (DPMC) founded by former
Sri Lankan motor racing ace David Peiris, has been successfully assembling
and selling Bajaj two-wheel and three-wheel motorcycles in Tanzania.
The company, which is the sole agent for Bajaj vehicles in Sri Lanka,
sold over 50 two-wheel and three-wheel vehicles within the first year of
its establishment in Tanzania.
According to Sumith Cumaranatunga, Managing Director of DPMC, they were
awarded the Tanzanian operation in recognition of the commitment and dedication
shown by DPMC over the years. "We have introduced two-wheelers, three-wheelers
and data communication services to the market and it is catching up slowly
but surely."
Although they ventured into a business which they knew so much about,
starting operations in Tanzania was a challenge for the company, noted
David Peiris, the company's media-shy chairman.
"We have done remarkably well compared to our success here. But we had
to start from scratch. That was not a problem because we had 20 years of
experience and trained staff to see us through the initial work," he said.
DPMC, formerly part of the Richard Peiris group, was launched in 1978 and
has seen phenomenal growth since then.
Agrees Jagath Kulatunga, the company's marketing director: "The Tanzanian
operation was much more successful than the Sri Lankan operation in its
initial stages. In Sri Lanka we sold just two trishaws in the first year
while in Tanzania, we sold 55 trishaws and 30 motorcycles in the launch
year."
He said the small Tanzanian assembly plant is run by a senior Sri Lankan
operations manager helped by a Sri Lankan foreman and seven Tanzanians.
Production proper began in September 2000 with the company receiving
its first container-load of 18 trishaws in semi-knocked down condition,
which plant staff then assembled into complete vehicles.
India's giant Bajaj group had asked DPMC to set up the Tanzanian plant
because it was impressed with the Sri Lankan operation and wanted the East
African operation revived.
Bajaj had a firm in Tanzania six years ago run by resident Indians but
that was a flop because vehicles were mostly used by disabled government
soldiers and identified as a vehicle for the disabled! When DPMC took over,
a slick marketing campaign and Sri Lankan ingenuity helped boost sales.
"We have slowly and gradually wiped out the misconception that this
was a vehicle only for the disabled," Kulatunga said. The DPMC group is
also planning to set up information technology units in Bangladesh, Fiji
and Australia.
Mind your Business
Calling for directions
Try running organisations in two countries while holding directorates in
scores of others? Tough, but that's what one of our high-flying corporate
CEOs did until the change of government.
With not enough time to spend in the Colombo offices because of overseas
work, our man had a novel idea. Officials from the state-run agency doing
a lot of promotion were asked to call him daily in his overseas office.
"Each official was given a specific time to call him during the day," one
wag said. He may have foregone a salary in the country's interest but the
money spent by officials on overseas calls seeking directions would have
cost more than what he would have wanted!
Cautious optimism
The business community appears to be euphoric over prospects for peace
talks and the latest truce with the Tigers and there's much talk of increasing
investments.
But it's mainly hype, for public consumption. The bottom line is that
the private sector is as wary as hardliners like the Sihala Urumaya - they
are not going to put their money in until there is absolute peace. Having
learnt from bitter experience in the past, the tycoons will go ahead with
planned investment and expansion projects only when they are sure the last
shots have been fired.
Another nagging doubt is the shaky nature of the UNF government. Kumaratunga
appears to be biding her time and waiting for a chance to topple the new
regime with the likes of Thondaman and Hakeem rocking the boat, demanding
their pound of flesh.
Tough mandate
The new government's privatisation programme is as ambitious as the one
by the Kumaratunga regime. And why not have the same personality handling
the programme and delivering the goods? That's the tough mandate given
to the former treasury boss and privatisation czar who is well aware of
the difficulties of raising money in what's known as a "hostile environment".
The government expects to raise some Rs. 21 billion from privatisation.
With government coffers empty, pressure to deliver would be immense.
Passing the buck
Although it promised to solve the energy crisis during the election campaign,
the new regime has had no option but to increase power cuts. Despite an
imperious order from the bosses that power cuts should not be extended,
they have actually been doubled. This raises the question whether politicians
can go against the advice of professionals - in this case the engineers
of the CEB who have been pressing for longer power cuts. Now an inquiry
has been ordered and there are allegations of sabotage. Is it an attempt
to pass the buck merely to ensure political popularity? |
