MAS spearheads automation, cuts new jobs
MAS Holdings is on a drive towards automation for its factory floor operations and office workflow as the company looks at staying ahead financially and not focusing on topline growth.
MAS will be more focusing on resilience and making the business stronger and financially staying ahead, the company’s CEO Suren Fernando said in an interview with The Sunday Times Business on Monday at the MAS head office at Battaramulla.
The company is predominantly in North America and Europe and a significant opportunity is envisioned in the APAC region.
Spools at a MAS factory.
MAS is currently engaged in establishing an even stronger presence in India as an export market, also while working for Indian brands and for other international brands that want to cater to the Indian market, he said.
He noted that the Indian consumer is a discerning one difficult to crack and so growth opportunities are limited.
Some time back MAS had also tried to supply into China but due to tough price competition this did not work out, he explained.
Mr. Fernando said that in 2023/24 the company had achieved “some level of recovery with a modest growth and noted that the margins had come under pressure”.
In this respect MAS is looking at increasing productivity by modernising the factories through automation on the factory floor that would help increase the output by using the existing employees.
Out of the total capital input about half will be spent on modernisation and therefore there will be reduction in their recruitment as well, Mr. Fernando said.
In addition it was noted that using different tools on the office level they will automate there as well by moving into digitised automation and bot (a computer programme that can simulate human activity).
“If we automate and modernise and improve, it will help the existing workers,” the CEO stated.
MAS expanded into Bangladesh about 15 years back where it has its largest footprint outside Sri Lanka. “We’ve been working on few disruptions and we were fortunate since we were located in Chittagong,” Mr. Fernando said.
In India the MAS presence has been around for 30 years where they hope to now expand their operations and venture further into the export market from India. The company has plans to continue to grow their business within this market as it’s a strong economy, it was pointed out.
Commenting on the orders for this year, the CEO noted that they are now receiving orders on a month on month and quarter by quarter basis without the previous system where orders would be given for the season.
A single digit growth is expected in the topline as the last two years have been tough in Sri Lanka as the currency has not been moving up and the imposition of taxes has also impacted on the industry.
In addition companies have been facing issues in line with growing migration trends of skilled staff.
“We are not planning for ambitious growth but for modest growth,” he said and added that they will not be reducing the workforce either but will look at upskilling them in order to work within the automation environment.
“We don’t see a need to increase our numbers with the drop in volumes, we looked at how to increase productivity.”
In this respect, the company is eyeing opportunities to invest in Research and Development and move upstream to use technology and reduce lead times.
He also pointed out that they will play in a position of strength in terms of sustainability as the company that built the first carbon neutral facility in Thulhiriya. In this respect, MAS has tied up with two companies to make strategic investments in sustainability.
MAS joined in 2023 with the Los Angeles-based materials science company Ambercycle in a bid to cater to growing demand among large brands and manufacturers for new streams of high quality next generation materials made from textile-to-textile regeneration.
MAS has also teamed up in 2024 with the Swiss-based HeiQ AeoniQ company as part of its plan for change initiative to support the development of next generation cellulosic filament fibres to replace polyester and nylon. This is said to be a climate-positive cellulosic yarn.
Meanwhile, MAS is optimistic of experiencing stability within the Sri Lankan economy as they are confident that the government is continuing the policies of the previous administration and retained some of the government leaders in their same positions.
Moreover, brands are also optimistic of Sri Lanka, Mr. Fernando said adding that they are awaiting the first budget as they expect more push and incentives for the exporters.
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