Maharajahs: A story of Sri Lanka’s key investor
View(s):The Capital Maharajah Group (CMG) venturing into its 90th year of operations has grown to become a family friendly organisation, a reason why some of their top rung seems rooted in its growth plans like gaining Test status for Sri Lanka cricket or establishing a flour manufacturing company and becoming the face of social welfare in the country through their key media brands.
Mr. Nimal Cooke
Investing in numerous industries, the CMG believes in forging ahead with assisting the economy to grow as well thereby engaging themselves in governance, according to Senior Group Director Nimal Cooke.
Joining the company in October 1975, as an accountant Mr. Cooke first served at Reckitt and Colman and later Ceylon Tobacco Company. But since entering the Maharajah Group he noted “I didn’t want to move out. This is not a company, this is a large family.”
Speaking of the prospects of working at this company, he noted it was possible to even meet the Chairman down the corridor and arrive at a decision whereas “in other places you do what someone has planned.” He added, “here if you have good ideas the sky is the limit” with most given entrepreneurial freedom to do what is best for the company and the country.
One of the significant milestones for the Maharajah Group was the opening up of the economy back in 1977, Mr. Cooke explained.
At the same time they also faced setbacks like the great fire that consumed their operations compelling them to re-build after the1983 riots.
“Six of our factories were burnt like ICL, S-Lon, Jones Furniture, Hettiarachchi, and the printing press and pharmaceuticals.”
“The next day we met and decided to rebuild,” he said but noted that they faced impediments from the existing laws that they had to fight against.
Speaking with the Business Times he recalled his first years with the organisation teaming up with its leadership to establish the Maharajah Projects that involved a 50/50 business operation to engage in new projects.
From automobiles they moved to hydro power to boost power supply to the country engaging in the establishment of the Victoria and Samanalawewa reservoirs with the latter mooted to benefit from the South West monsoon to ensure availability of energy during both seasons, Mr. Cooke explained.
Otherwise the hydro power projects were mainly in the North East monsoon areas, he said adding that these activities were introduced by them.
Also with the establishment of Prima by the group they had ensured that tax concessions could be facilitated by forming another unit, the Board of Investment (BOI) that was previously the Greater Colombo Economic Commission (GCEC).
Mr. Cooke also said that the growth has been based on strategic investments with other governments like Singapore, Malaysia and New Zealand.
An interesting move for cricket in Sri Lanka was made it is stated when Chairman of CMG Killi Rajamahendran due to his close links with the late Minister Gamini Dissanayaka and his affiliation with officials at the International Cricket Council (ICC) was able to obtain test status for Sri Lanka, Mr. Cooke said.
“In the ‘70s we were on the sports page not the front page of the newspapers making strides in netball, cricket and hockey,” he recalled adding that there were about 12 members of the cricket team and some from the netball team that were working with the group.
Similar sentiments of the company and its leadership style were echoed by former cricketer and CMG Senior Group Director Jayantha Monnekulame now resident in Australia and who spoke to the Business Times from there.
Joining in the early 1970s he was later asked to learn about tea and it was in 1989 that the company bought over Harrisons and before that AF Jones and thereafter expanded the business into various countries in the Middle East and Europe.
“We moved to Darley Road and amalgamated the business but shipments were taking place under their respective names to different markets,” Mr. Monnekulame said.
Investing in tea bags, the company set out to engage in further value addition and bulk sales having also installed a new tea bagging system and blending and clearing system.
Right now the company is ensuring they convert the tea bags sold with staples to those sold with knots as this is the current demand, he explained. He also noted that the Chairman’s daughter Anjali Rajamahendran is currently the head of tea.
Having faced a setback during the initial days of the lockdown in Sri Lanka, in March/ April however, they were able to export the teas to traditional markets subsequently.
With the second wave of the COVID-19 in countries like Kuwait there had been a stoppage in the sale of tea stocks, he said adding that even in the US there has been a drop in the consumption of teas due to the current situation.
Tea tasting room has also been moved to Ja-ela and within a few years the company hopes to move packing and tasting to one location, he noted.