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Maliban
directors sample biscuits like tea-tasting culture Samples from all the production lines are picked up and sent to all the company directors for tasting. Any adverse findings are immediately conveyed and corrected then and there. Samaraweera is the son of the Maliban founder Angulugahagamage Hinni Appuhamy. In any country local industry and agriculture is considered to be the life-blood of the economy especially in developing countries like Sri Lanka. Likewise the Maliban Biscuit Manufacturers Ltd (MBL), a foremost local industry, is standing like a rock, braving the odds and foreign competition throughout and passing the "50th" milepost and on April 5 celebrated its golden jubilee. It was on this day, 50 years ago, that Hinni Appuhamy floated the first Sri Lankan biscuit manufacturing company called Maliban. There are about 30 plus foreign biscuit brands available in the market but Maliban's climbed to the top to be the market leader possessing a share of 41 percent, annual turnover running to around Rs. 3 billion and exporting around 400 metric tons annually to countries like Canada, the United Kingdom, the Middle East, Switzerland and India. The secret of their success has been the tradition and culture of maintaining a consistent quality coming down from the father to the son. The maintenance of quality is a kind of religion in the Maliban culture. The company while treasuring quality as its heritage and though there are lot of raw material substitutes, it uses the original recipe coming down the years. There is a mixture of modern technology and management skills. Maliban was the first biscuit manufacturer in Sri Lanka to win the quality award from the Sri Lanka Standards Institute in 1996. In the same year it was awarded the ISO 9000. It now possesses the latest international standard for biscuits ISO 9001/2001. MBL is also alert to global developments in the industry, and the new turn that is taking place in food habits. Bran Crackers, a kind of health food is already in the market and MBL is now trying to move towards energy and health related items, to cater to those suffering from illness like diabetes and heart diseases. The success of Maliban is like the story of 'Dick Whittington going to London'. Hinni Appuhamy was a budding youth, just 17 years from Akmeemana in Galle out of a family of four sisters and three brothers whose parents died when the children were young. In 1922 he came to Colombo with only 75 cents in his pocket and was fortunate to take over the canteen of Mackinnon Mackenzie & Co Ltd through one of his uncles. After a few months however the contract ended disastrously because of a jealous man who secretly introduced salt into the sugar bowl. However, later Hinni Appuhamy would be thankful to the man who introduced salt as that was the turning point of his life at an early age. He was to return to Galle but stayed until the end of the month to collect his dues and settle the borrowings. He came across a place in First Cross Street, Maliban Street Junction, rented it and started a tea kiosk. With business flourishing, he opened a bigger hotel in 1935 in the ground floor of Victoria Hotel at 62, Maliban Street. As business reached greater heights, he brought down his two brothers from Galle to assist him. Hinni Appuhamy opened his second hotel at First Cross Street and then moved it to a more spacious place in No.85, Norris Road. Luck was on his side and business was very good. He opened hotels at Baseline Road, another at Norris Road and another at Chatham Street. He also managed to purchase the bakery supplying bread and cakes henceforth. Half an acre of land was bought at Kirulapone where he opened a dairy which was later shifted to a land of two acres in Nawala. The Kirilapone property was used to commence a hand operated bottling of Maliban Mineral Waters. Afterwards it was mechanised. He branched off into ice cream industry and opened Maliban Cream House in Colpetty. Soon after World War II in 1945 the assets of the businesses carried out by the three brothers were incorporated into a limited liability company under the name and style of Maliban Hotels Ltd. The business included oilman stores, six hotels, one tearoom, ice cream parlour, a mineral water company and bakery. The bakery began to manufacture hand made biscuits which became popular overnight in the outstations, particularly in the up-country towns. In 1940 when World War II broke out and with scarce food, biscuits had a firmer market. A plant was purchased from Baker Perkins and in 1954 the birth of Maliban Biscuits commenced in full scale after the bakery section converted to a limited liability company in the name and style Ma liban Biscuit Manufacturers Ltd. The registered office was at No.11 Van Rooyen Street, now A G Hinniappuhamy Mawatha. Later a complete biscuit plant bought from abroad was installed at Van Rooyen Street followed by another automated biscuit plant that could produce 7 to 8 tons during an eight-hour shift. Several other machines to produce wafers, ice cream cones and the cream were installed. MBL started exporting biscuits first to Bahrain, followed by Maldives. Maliban biscuits were selling like hot cakes indicating expansion was eminent. The government had also extended enough support by banning all biscuit imports during the formative years of the business. A land of eight acres at Galle Road Ratmalana was purchased and with the expansion of the export market along with a flourishing local market in 1993 a giant ultra modern plant was installed at a cost of Rs 350 million, adding a further 20 tons per eight-hour shift. Today Maliban has four biscuit production lines and expects to add another line soon. With the expansion it would increase its export market to embrace the East Asian countries. U. Keerthie Adasuriya, Chief Executive officer (CEO) of MBL, told The Sunday Times FT that the biggest biscuit consumer market in the world is India and MBL is all out to carve a firm foothold in that country to aggressively market MBL products there. He said that while MBL is holding on to the quality concept as sacred and the concept has actually become its lifeline of sustenance, survival and expansion, the company is also under pressure due to the flooding of biscuits into the Sri Lankan market, foreign on the one hand and on the other 30-odd local manufacturers. Adasuriya said that prosperity is through a hard struggle. The company has enjoyed a major boost during 1970 to 1980 period and towards late 1999 its market share was an all time high of 60 percent. But towards 2000/2001 MBL was on the decline with the market share going down to some 35 percent while regaining of market share started only by 2003 March. He said the company is now undergoing a restructuring programme out of the 'Fixed Organization concept' to a 'Learning Organization Concept' whereby the entire company is being restructured aimed at regaining the lost share. Adasuriya said they are now moving towards objectives like improving the corporate image especially under the banner of "Heritage" and to improve the productivity through 'Worker Participation'. The workforce is 1426 with an additional indirect employment component of around 2000 workers. With massive expansion plans in the pipeline, a large number is expected to secure employment. He said that the company has very attractive welfare facilities for the workers. Edasuriya said that the government must consider protecting the local industry. He said that they are a company with 90 percent imported raw material base. It is a matter to be concerned that biscuits enter the Sri Lankan market with 100 percent duty free, due to various Free Trade Agreements. Even India is imposing a 20 percent import tax at the point of sale. The free flow of imports would also pave the way to enter low quality biscuits.He said that in the name of sustaining local industry and for the company to maintain high quality on par with international standards, some kind of protection should be offered. It would not only save the local industries but also help maintain high quality and pave the way for more exports. |
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