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Local
textile industry on verge of collapse Sick The former regime cut import duty from 50 percent to 35 percent in its first budget in February 1995 at a time when the industrialists were getting ready for the Sinhala New Year seasonal sale after building up huge stocks of fabric. The textile manufacturers could not dispose of their stocks as the dealers preferred to import their requirements for the season at a reduced rate of duty. The manufacturers were compelled to sell their stocks after the season at a price very much below the cost thus incurring heavy financial losses. The details of profits earned and losses incurred during three consecutive years by three leading public quoted textile companies are given below as per their published accounts, just to indicate the extent of the damage the unplanned reduction of duty caused. Sadly, these mills are not in operation today. Losses Then these companies suffered huge financial losses in the following year (as at 31/3/96) as they were compelled to dispose of their stocks accumulated in the previous year at low prices. This was the beginning of the downward trend in the textile industry. Had the Government listened to the industrialists and postponed the effective date for cutting the duty at least by three months this disaster could have been averted. Deathblow The apparel sector asked for the removal of duty for import of textiles since they felt that the major obstacle to the growth of their sector was the protection given to the local textile industry. The apparel industrialists expected a huge boom in their sector after the removal of duty for textiles. They further expected a free flow of good quality fabric into the country so that apparel exporters could purchase their requirements of fabric from the local market. They also had indicated to the government that they would absorb the employees from the textile sector if they were given further concessions such as additional quota allocations. These expectations never materialised. Decline The biggest problem the local textile industry is faced with in competing in an open market is the large scale dumping of imported textiles into the local market. All the existing mills are operating at very low production levels because the local market is flooded with low-priced, low quality fabric. At this rate the local textile industry may not survive unless remedial action is taken immediately. An industry should not be over-protected but there should be a reasonable level of protection against unfair trade practices. Mills Apparel sector
fabric The indications are that apparel buyers would be looking to develop their future contacts with apparel producers in countries where the textile manufacturing bases are established in order to cut down the lead time of their orders. Thus, there is a need to set up many world-class textile mills in Sri Lanka in order to save the apparel industry. Workshop
on anti-dumping Some 30 foreign participants are attending in addition to local participation, while the resource personnel will be a group of foreign experts. A NCE press release said Peter Naray would speak on the inter-relationship between trade liberalisation and trade remedies and the post- Doha agenda, while Daniel Porter will speak on Trade Remedies in the World Trade Organisation (WTO) System which would cover "Purpose of remedy laws, business implications of trade remedy laws under the WTO legal frame work, anti-dumping, countervailing duty and safeguard measures." Fabrice D'Aprile will speak on National Trade Remedy Systems. The two-day workshop will conclude with a panel discussion on the role of business strategy in avoiding the initiation of trade remedy procedures and recommendations to prepare the region for foreseeable use of trade remedies in major markets. Dr. Sanath Jayanetti, Consultant, Institute of Policy Studies will be the moderator. E-"mOre"
cards from Mobitel Mobitel, which introduced the facility of online payment with HSBC and Sampath Bank, last year, will initially use the HSBC payment gateway for this initiative. The company also plans on opening Sampath Bank's payment gateway to enhance the service facilities. The website has a new option in which the customer could buy the e-more card. To purchase the card online, the customer is required to mention the prepaid phone number and the value of the card he proposes to purchase. This information will be checked by HSBC's secure payment gateway and confirm the details to the Mobitel system enabling it to write a credit value for the approved amount. The customer will be informed via email, the statement added. Phoenix
training on "360º" brand thinking The four days of training consisted of sessions on facilitating group work or meetings, breakthrough thinking and people management. The need for skill to run meetings has been prompted as a result of having different people with different disciplines and expertise to keep in line with the core of "360º" branding. The "360º" branding is a concept of O&M where the agency looks beyond advertising to other aspects of branding to recommending solutions to their clients. The session of people management has particular emphasis on motivation when working as a team. Strachan observed that the local staff of Phoenix were lively, intelligent and worked well together during training of which a large part was spent on practicing the learning process. The training arm of O&M is responsible for increasing the capacity for growth of its subsidiary companies. Andrew Samuel, General Manager of Phoenix O&M said that this was the first time a large group averaging around 35 members was trained. The larger number was constituted with the aim of incorporating what was learnt into the respective departments they work. The staff was drawn from the management, media, creative, public relations and from Outreach, the direct-marketing arm of the company. Though the staff is somewhat experienced in these areas the training is expected to streamline the work into a step-by-step process while keeping to the fast pace of the advertising world. Asked about future training plans, Samuel said that it was about putting into practice what was learnt and that the Regional Creative Director of O&M would be in Sri Lanka to conduct a creative training workshop. Some of the other kind of training that the staff of Phoenix benefits as part of O&M computer simulations, practical application on actual projects with counterparts in other countries, etc. Each member organisation also has a training leader who co-ordinates with the main training division of O&M. Once the training is completed a post review is conducted after a period of time given for practical application. The information and additional materials are shared through the group's network. New
tea pack from Gordon Frazer "This is our first step towards adding value to Ceylon tea," said Michael de Zoysa, managing director of Gordon Frazer and Company. "There'll be many more launches, locally and abroad." The firm's chairman Jagath Fernando, who is also deputy chairman of John Keells, said they plan to launch branded Ceylon tea products in key regional markets during this financial year. "We have been tea brokers for over 100 years. It is the business we know best," he said. "We got into plantations management in the early 1990s. Having been on both sides - we realised the real money is actually in branding one's products." They plan to start exporting to three key regional markets but would not immediately try to enter developed markets where entry costs are high, he said. The new product for the local market, called 'Ran Kahata' (golden brew), will compete with other local branded products such as Zesta made by Watawala Plantations and Unilever's Ceylonta. The local market for tea is around 20 million kg, of which only five million kilos are sold in packets and tea bags. "So we see a tremendous opportunity to make consumers switch from loose tea into branded, value-added tea products," said de Zoysa, the former managing director of Unilever Ceylon's Tea Division. Surveys done for the marketing campaign have found that Sri Lankans consume 36 million cups a day - 75 percent of which is drunk in 'kahata' form - brewed from tea dust which sometimes tends to get contaminated. Gordon Frazer has tied up with Delmege Distributors, a unit of Delmege Forsyth and Co, which has a network of 20,000 outlets islandwide, to sell the new product. Sri
Lanka Insurance Corporation settles Rs. 7.4m life claim promptly The 45-year-old
proprietor of Farmline Agencies (Pvt) Limited, Mr. Padmasuriya,
was a loyal customer of the corporation and a firm believer in the
stability and security that insurance provides, having held nine
policies to obtain maximum cover for business and personal eventualities,
the corporation said in a statement. He had also obtained four mortgage protection policies, in addition to the personal life insurance policy, to cover personal loans and business contingencies. As a caring parent, Mr. Padmasuriya opted for three Minimuthu policies for his children, the statement said. On the demise of the parent, the children became entitled to an immediate benefit of Rs. 500,000 each and would also be entitled to an additional Rs. 500,000 plus accrued bonuses, on each child reaching 18 years of age, even though premium payments for these policies were waived on the death of the policyholder. Mr. Padmasuriya's farsightedness and objectivity has allowed his wife and children to be redeemed of the burden of mortgages or loans and ensures the continuity of his business venture and a complete education and livelihood for his children. On accepting the cheque from the Sri Lanka Insurance Corporation. Mrs. Padmasuriya said that she will continue insuring with the corporation owing to the professional manner in which the business was implemented. Ananda Adihetty, Organiser, Chilaw Branch was responsible for the introduction and client servicing of the policies held by Mr. Padmasuriya. Being the leader in the insurance industry in Sri Lanka, the Sri Lanka Insurance Corporation has over the years come to the aid of many families whose breadwinners had insured themselves, ensuring a trouble-free continuity of life and business for their families after their death, the statement said. |
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