Contractors should be more disciplined – MAGA’s Kularatne
MAGA Engineering, establishing its position as Sri Lanka’s market leader in construction, has from infrastructure development projects to metropolitan high-rises made an indelible imprint as a model construction company in the country. Capt. M.G. Kularatne, Chairman and Managing Director, in this interview with the Business Times at his simple-down-to-earth office at Nawala explains how the company’s construction business has set standards for the construction industry.
Unlike other successful businessmen, the veteran builder and contractor does not use a mobile phone.
Excerpts of the interview:
On the company beginnings:
Capt. M.G. Kularatne during the interview. Pic by Susantha Liyanawatte
I worked as an administrator for a few Japanese companies in the mid ’70. At these companies I learnt about construction management, the related issues and procedures in this business. I decided to set up a construction company which resembled (in terms of work ethics) a Japanese company in 1983, starting with a small capital and invited my brother and then a friend to join in. At the time I was still attached to the Japanese company and my brother helped me set it up.
Was 1983 (ethnic riots in July which shattered the economy) a good time to start?
It was not a good time to start. The open economic policies had been in force for six years by then and by 1984 there was a lot of competition.
What projects did you start initially?
In the beginning we did sub-contracting for international contractors. We did the first contract which was a 3-storey building for National Building Research Organization. We completed it four months ahead of schedule and this was our success story, as the word went around about us completing this project before time. Also it was said that this is a systematic company with good housekeeping. This opened the doors for us to do other projects with main contractors.
What are the other projects you set out to do after this initial success?
In 1993 we started constructing the 155 room, 5-star Eden Hotel and completed it in 1994. This was followed by four more hotels – Taj Exotica, Lighthouse, Sinbad Garden and two high-end hotels in the Maldives. This is left our indelible imprint in the industry.
What advice have you got for present day contractors?
There are some contractors who can do a decent job within the given timeframe. But a great majority has still to learn planning, organizing and managing the projects. They should resort to build stable and reliable organizations. The foremost thing is the discipline. Discipline is important for a person to succeed.
How has MAGA’s growth trajectory been?
Throughout our career, we have had growth except for one year – 1997/98. This was because during that time the industry was stagnant.
How has the industry performed post – war?
It has accelerated more than 20 per cent in growth after the war.
What has your strategy been?
Our core business strategy has always been to provide quality construction products and services within the shortest possible time – and at the most competitive prices. These facets are underscored by exceptional quality and remarkable after-sales services. The organization has earned itself an enviable reputation in the industry for speedy construction of buildings, roads, bridges, water-supply and drainage facilities, and marine structures. It also possesses the largest capacity in terms of volume – providing total construction solutions from concept to conclusion.
Why are you low key/low profile?
It’s better to be that way; there’s less disturbance and distractions. We don’t utilize traditional mass media to advertise our products and services. New construction contracts are secured through our competitiveness and oral and written recommendation from former clients who have been the company’s most vocal promoters providing valuable word – of – mouth publicity. This is a result of having satisfied their requirements beyond expectations with timely delivery, exceptional quality and impeccable after-sales service.
Why aren’t you getting into other sectors?
We want to specialize in what we do best. We plough 90 per cent of the profits back to the business.
This has helped us acquire the plant and machinery required for large construction projects from reputable international suppliers and it successfully built up a dynamic and dedicated team armed with the necessary knowledge and experience to offer world-class standards. It is the company’s dedication to high quality and its depth of experience that has enabled MAGA to secure some of the most prestigious construction projects in Sri Lanka.
What are your staff numbers?
MAGA has a dedicated workforce of over 6000, led by a team of professionals, and over 150 graduate engineers and other technical staff. They are an incredible team.
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