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American "bunis" is big business
Buns provide a delicious mid-morning snack to apparel workers
What is a bagel?
A bagel is a doughnut-shaped, yeast-leavened roll that is characterised
by a crisp, shiny outcrust and a dense interior. It is a fast but nutritious
snack, which can be eaten with a topping of your choice. Made from the
basic bread ingredients of flour, yeast, salt and sugar, the high gluten
flour gives the bagel roll its spongy, chewy texture.
Traditionally, the bagel dough is shaped by hand into a ring, boiled
for a short time in water and then baked in an oven. But in modern production
the rings are machine made and steaming is substituted for boiling.
The origin of the bagel is not known but it has been long regarded as
a Jewish food item.
By Naomi Gunasekara
As a young science graduate of Vidyodaya University, Sri Jayawardenapura,
Mahinda Ranasinghe, Managing Director of Finagle Lanka (Pvt) Ltd, may not
have dreamt of venturing into a partnership with Martin Trust, a multi-millionaire
chain-store owner and the second largest shareholder of US-based The Limited
(a Fortune 500 company), to transform a family bakery into a world-class
baking facility.
But today, Ranasinghe, among the first engineers employed by the Ceylon
Timber Corporation and a one-time powerloom factory owner, has his thoughts
while asleep or awake on making his joint venture, Finagle Lanka (Pvt)
Ltd, a complete success.
"We started in a very small way. The credit should go to my wife, who
started baking in a Baby Belling oven," said Ranasinghe, recalling how
his wife, a home science teacher at that time, started baking cakes as
a hobby for his father's hotel.
"She mixed the ingredients with a hand mixer and sold the cakes at my
father's food outlet, Ranasiri Hotel," he said. His father has been operating
a small hotel at Kottawa since 1943 he added. "That is how we came into
baking. Gradually we moved on to bigger mixers and ovens as we increased
our clientele. At that time we had a fairly large clientele and my wife
used to bake 600-700 cakes during the Christmas and New Year season."
Though there has been a big demand for the cakes, they have not been
marketed under a brand name. "They came to be known as Nona cake, because
they were baked by my wife," said Ranasinghe with a sense of nostalgia
as he went down memory lane.
As the demand increased, the Ranasinghes' decided to expand the production
at Ran Ovens, their home bakery. "We thought the best thing would be to
go for a conventional type of oven. Hence we got a diesel operated second-hand
German oven in 1994."
Low-key
According to Ranasinghe, they had started with a couple of girls on a low
key and moved on to other products like maalu paan and kimbula bunis. Their
road to success has not been an easy one. "We went through a lot of ups
and downs. Sometimes we didn't have adequate working capital and my wife
was compelled to pawn her jewellery to provide the capital. This wouldn't
have been possible if not for her faith, perseverance and hard work," said
Ranasinghe proudly.
He added that he would not have achieved the desired success without
support from Phoenix Ventures, one of the leading conglomerates dealing
in yarn and textiles under the name of Firoze Ltd in Sri Lanka, and his
partner in the powerloom business, Mr. Ashroff Omar.
Joint venture
When they reached the zenith of their baking business Ran Ovens was approached
by Martin Trust, the second largest shareholder of The Limited and former
President of MAST Industries, with a proposal to start a joint venture
baking plant.
Finagle Lanka (Pvt) Ltd, situated at the Industrial Estate in Ekala,
Ja-ela, was then launched as a joint venture between the US-based Finagle
a Bagel, Phoenix Ventures and Ran Ovens. According to Shyam Dissanayake,
General Manager of Finagle Lanka (Pvt) Ltd, the joint venture is the brainchild
of Martin Trust, who purchases over 50 percent of Sri Lanka's garment exports
for The Limited.
"Trust operates a bagel operation in Boston called Finagle a Bagel and
Mr. Trust wanted to introduce it to Sri Lanka even before the bagel operation
covered the whole of the United States. They operate a large-scale operation
in the US. They have a fully computerised baking facility for making bagels
and this produces over 96,000 bagels in an eight-hour shift," he said.
Bagels are similar to buns but with a hole in the middle.
After Finagle Lanka (Pvt) Ltd was established, Ran Ovens was purchased
by Finagle Lanka (Pvt) Ltd. "We had our bakery at Kottawa, adjoining my
house. As the demand increased we started expanding. But we did it in a
very hygienic way. We tiled the floor and the walls and got the workers
to go through a foot-bath before they entered the bakery."
It was these hygienic standards maintained by Ran Ovens that led to
the joint venture. "When we were requested to send photographs of our bakery
to Mr. Trust we included pictures of the foot-bath. He had inquired what
it was and when he realised the emphasis we have placed on hygienic conditions
he expressed his willingness to join us immediately." said Ranasinghe.
Apparel industry
Trust has over 34 joint ventures in Sri Lanka and a workforce of over 25,000
girls. "His sole aim in setting up the joint venture was to provide his
workforce with a decent meal. A research study carried out in these factories
indicated that most of the girls came to work without breakfast because
they were provided with lunch. Their efficiency levels drop around 10.30
am (due to lack of food). So Mr. Trust wanted to provide them with a snack
to revive their spirits," explained Ranasinghe, who had been feeding the
apparel industry through Ran Ovens even before the joint venture was established.
Once Ran Ovens was chosen to work in partnership with the Trust and
Phoenix Ventures, Ranasinghe was requested to visit Mr. Trust to negotiate
the terms and conditions of the joint venture. "Mr. Trust had said, 'choose
the best equipment' so we selected Italian equipment for three of the four
lines of production. He insisted that we use the same equipment which are
being used in their US factory for the bagel line," explained Ranasinghe.
Following the discussions, his powerloom factory has been transformed
into an ultra-modern baking facility with Italian technology. "The land
and buildings were here. We just had to remove the powerlooms and move
them to the other side of the factory," he said revealing the reasons for
establishing the bakery in Ekala.
"When this project was mooted we decided that this was an ideal location
because we are close to the Katunayake and Biyagama free trade zones. At
Katunayaka there are about 60,000 workers and Biyagama has 20-30,000 workers.
Our main target is the factories in and around this area," explained Ranasinghe.
"You find that a lot of factories want to give their workers at least a
snack if not a full meal, especially the apparel industry. That is what
we are aiming at."
Workforce
Having closed down his powerloom industry, Ran Fabrics, by 1995, Ranasinghe
has utilised some of the technicians who were employed at the powerloom
factory as machine operators at Finagle Lanka (Pvt) Ltd. "We absorbed the
whole workforce we had at Ran Fabrics and some of the technicians from
the powerloom factory. We also recruited one of the best bakers in Sri
Lanka, Tissa de Silva as DGM (Deputy General Manager). He is in charge
of staff training and introduction of new products. We sent him to Boston
for specialised training and as for the workers, it was just a matter of
learning how to handle the machines."
Equipment
The bakery, which mainly targets the apparel industry, has four lines of
production, which include the bread line, bun line, pastry line and the
bagel line. The bread line produces sandwich bread, normal bread and "kade
paan" in order to reach the diverse segments of society.
According to Dissanayake, Finagle's bread line caters to all markets.
"Although we have the best technology we are not trying to confine our
bread line to cater to the elite. We even have a loaf for Rs. 11 called
the kade paan."
Their bun line utilises sophisticated equipment, which is used in the
South Asian region for the first time. The equipment is linked to a master
computer in Italy, which receives signals whenever there is a problem in
functioning.
Everything in the bakery from flour mixing to baking and packing the
finished product is done by machines and human intervention is required
only in filling the buns and sprinkling sugar over products that are ready
to be baked.
Bagel line
"We have just started our bagel line. Some Americans were here recently
on a visit to the MAST office and we sent them some cinnamon and raisin
bagels to taste. They sent me an e-mail later saying that there is absolutely
no difference between the Boston bagel and the Ekala bagel," said Ranasinghe
who was elated over the success of their new line of products. "You can
make it sweet or savoury.
It's the filling that makes the difference. The combinations you can
have on the bagel line are endless - you can even have a seeni sambol bagel!"
he said, as he took The Sunday Times journalists to the baking area.
Workers were busy opening oven doors and loading products to be baked
while others unloaded golden-crusted bread in dozens. "We work on two 12-hour
shifts. The baking industry has a peculiar timing. You have to deliver
the loaves early in the morning before people leave their homes and in
the evening in time to enable people to buy them on their way back to their
homes," he noted.
Challenges
Finagle Lanka has over 135 workers today. Having started operations last
June, the company has still a long way to go, according to Ranasinghe;
"We're growing but still incurring millions in losses. At the moment our
machine utilisation is about 18-20 percent but our capacities are big.
If we utilise the machines up to 50 percent of its capacity then we will
have reason to smile," he said.
However, complete success takes time to achieve, Ranasinghe said. "When
we were at Ran Ovens we produced about 8,000 pieces but now we have gone
up to about 30,000 pieces. It took us about 4-5 months to grow. It will
take a little more time for us to make a profit," he said.
Their bread line can produce approximately 30,000 loaves per day and
if it is only hamburgers and hot dog buns that it has to produce, then
the bun line will do about 170,000 pieces per day. "The speed comes down
when you have to do a filling. Sri Lankans prefer a bun with a filling,
like malu paan, because a plain bun like a hot dog bun will cost more.
But when the filling is involved the production rate comes down. So if
we can produce about 80,000 buns per day we will be very satisfied. At
the moment we are producing about 15,000," explained Ranasinghe, detailing
the problems that beset the company in carrying out operations.
"There were swarms of flies when we started operations. We employed
some persons to eradicate this menace.
They said the problem originated from the drain that ran through the
industrial estate and that it was an ideal breeding ground for flies. We
spent over Rs. 20,000 to clean the entire drain. We disinfect the area
once in two weeks because we consider hygiene an important factor," he
said.
Having established a world-class bakery in the Ekala industrial estate,
Ranasinghe intends to expand the business by operating a bagel chain in
and around Colombo and thus make optimum use of the machinery. |