Financial Times

Kelani Cables aiming for more exports
By Quintus Perera
While the corporate sector in developed countries is now investing in human resources which helps to increase productivity and reduce labour disputes, most of the developing countries are still exploiting workers, ignoring job security needs and retirement benefits.

In Sri Lanka however there are a few exceptions to exploitative companies with some firms treating human resources as a very valuable asset. Last month, Kelani Cables Ltd (KCL) management was transferred from the Pacific Dunlop Group (an Australian Company) to ACL Cables Group.

To mark the smooth transition the management of KCL decided to award certificates of appreciation to all the employees numbering around 300 and set aside Rs. 6 million which could be encashed by them at retirement or resignation whichever comes first. Under the proposed formula, 80 percent of the benefit would be based on the number of years of service and the balance 20 percent on the position held by the employee at the time of transition.

There is also a proposal to introduce a loan scheme for employees to be provided against these certificates as a welfare measure. Hemantha Perera's appointment as the Managing Director of KCL in July 2003 also appeared to have expedited the transition as well as the awarding of Appreciation Certificates.

From July to November 2003 company turnover has risen by 25% compared to the corresponding period last year, by way of improving output, minimizing stock out situation and strengthening the marketing division.

Perera worked at John Keells Holdings for 17 years before joining KCL. A quoted company in the Stock Exchange, KCL has been in the manufacture of electrical and telecommunication cables - enamel copper wires for the last 30 years and its quality manufacturing enabled it to secure ISO 9001 -2000. It has a dealer and distribution network covering the entire country with a host of major customers like the Ceylon Electricity Board, Sri Lanka Telecom Ltd and Sri Lanka Railway.

Kelani Cables officials say they take their role as a responsible corporate seriously. With the expansion of industry, business and a whole gamut of other activities to the rural areas where there is a demand for electrical wiring and motor winding, KCL - through a series of programmes - is infusing some confidence in young people to be successful entrepreneurs and to start their own businesses.

The company conducts day-long workshops in various parts of the country for rural electricians and motor winders so that their social status would be elevated from just 'Baasunnehei' to either 'electrical technician' or 'motor winding technician'. It not only gives them a push in the social ladder, but also enhances their quality of work to apply modern technology into day-to-day work.

The company maintains a data bank with information on all dealers, electricians and winders and also has a Technical Services Division where any technical issue faced by these electricians and winders is referred to for practical advise. KCL has declared a dividend rate of 25 percent to shareholders for the last three years.

Though its markets are outside Sri Lanka in countries like Japan, India and Maldives its export values for the year were Rs. 41.6 million which ended in March 31, 2003. KCL also exports its products indirectly to the European Market as it supplies to projects which operate in Free Trade Zones.

Exports are also growing and KCL expects to open new vistas as they are trying to get into the Indian market where volumes are being currently negotiated.

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