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CEAT Kelani boosts earnings of local rubber industry

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CEAT Kelani representatives conducting training for rubber suppliers.

Increased production to meet local demand has enabled CEAT Kelani Holdings to increase its monthly purchases of natural rubber in the domestic market by as much as 35 per cent by September, the country’s leading tyre manufacturer has disclosed.

The company, which sources all of its natural rubber requirements locally, said its purchases in September 2020 alone would reach 500 tonnes (500,000kgs), generating Rs 150 million in revenue for Sri Lankan producers in areas such as Kegalle, Kalutara, Ratnapura and Monaragala.

In the pre-pandemic months of December 2019 to February 2020, CEAT Kelani’s purchases of rubber averaged 366 tonnes a month, generating average monthly revenue of Rs 107 million for local suppliers, the Company said.

“One of the major reasons for CEAT Kelani’s existence in Sri Lanka is the availability of natural rubber, and we have always been focussed on maximising local value addition,” the company’s Managing Director Ravi Dadlani observed. “With our ramping up of production in response to the temporary import restrictions imposed by the government, our contribution to local natural rubber producers has increased sharply, by as much as 40 per cent in value terms in just seven months.”

Increased production of truck, bus, radial and two-wheeler tyres by CEAT, while supporting the government’s efforts to conserve foreign exchange through import substitution, would also help local industry achieve the ‘V’ shaped post-pandemic recovery that is expected of it, Dadlani said.

CEAT Kelani engages with a base of nearly 30 dealers for the purchase of natural RSS rubber and interacts with them on daily basis. Besides daily procurement transactions, the Company imparts knowhow to the dealers to help them improve the quality of RSS grades. “We periodically audit dealers’ operations and help them maintain high quality standards,” Mr Dadlani added. “As a result many of our dealers are now recognised as “CEAT approved NR dealers.” This recognition not only helps them to be consistent suppliers to CEAT Kelani, it also helps them to establish themselves as quality suppliers of RSS grades to rest of the local industry.”

CEAT’s ramping up of production of truck and bus tyres since the start of the pandemic-linked lockdown has resulted in the Company now producing 100 per cent of the segment’s requirements and enabled the government to make a saving of Rs 11 billion a year in foreign exchange. The Company has also achieved an 85 per cent increase in the production of tyres for the ‘two-wheeler’ segment over the past three months; enabling a further saving of Rs 350 million a year through import substitution.

CEAT Kelani can currently produce two million tyres annually across multiple categories, and an addition of a further 200,000 Car and Van Radial tyres is imminent with new machinery being installed, pending the arrival of foreign technologists to commission the additional capacity.

Notably, CEAT Kelani Holdings has kept the prices of its tyres unchanged since December 2019 to support customers and the economy, despite the additional investments made in increasing capacity and an increase in market prices due to demand.

CEAT Kelani Holdings is considered one of the most successful India – Sri Lanka joint ventures in the manufacturing sector. The joint venture’s cumulative investment in Sri Lanka to date totals Rs 8 billion, inclusive of Rs 3 billion committed in January 2018 for expansion of volumes, technology upgrades and new product development. The company’s manufacturing operations in Sri Lanka encompass pneumatic tyres in the radial (passenger cars, vans and SUVs), commercial (Bias-ply and radial), motorcycle, three-wheeler and agricultural vehicle segments.

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Union Assurance empowers its policyholders by introducing free COVID-19 life coverage

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Union Assurance PLC being one of the largest insurance solution providers in Sri Lanka has further established their commitment towards the nation by staying true to its promise, ‘Your Life, Our Strength’. In turbulent times such as COVID-19, the company has taken initiative to persevere and adapt by responding to customers’ needs irrespective of the unanticipated circumstances presented.

The free COVID-19 cover has been reinstated to support both existing and new policyholders to ensure additional protection during these uncertain times. The cover provides a free death cover up to a maximum of LKR 1 million per policyholder. This free cover is valid for a period of one month commencing from 02nd November 2020 to 01st December 2020.
Union Assurance was also recognized as one of the first life insurance companies to offer hospital cash benefits for quarantine treatments since the outbreak of COVID-19 in Sri Lanka. The company therefore assures all its valued policyholders this initiative would be continued in which hospitalization per day claims directly resulting from COVID-19 will be considered from 20th October to 31st December 2020.

Amidst grave adversity Union Assurance strives to provide its unwavering commitment in offering the best in class protection coverages to its policyholders while ensuring that their families are financially empowered to face any challenge and uncertainty.

Jude Gomes, Chief Executive Officer of Union Assurance stated, “The COVID-19 pandemic is a global health, economic and social crisis and has affected people from all walks of life. We offer this timely protection cover free of charge to provide our policyholders the added peace of mind that the future of their families will be secured during these uncertain times. The specialty of this cover is that it is not just limited to our existing policyholders but is also offered to new customers and thereby giving Sri Lankans access to secure the future of their families.”

To obtain more information about this free COIVD 19 cover, call the Union Assurance 24-hour hotline on 1330, email: info@unionassurance.com; or chat with the company on www.unionassurance.com
Union Assurance is the oldest private life insurer in Sri Lanka, and is a member of the John Keells Group, Sri Lanka’s largest listed conglomerate. Union Assurance completes over three decades of success in the industry with a market capitalization of Rs. 18 Bn, a Life Fund of Rs. 38 Bn and a Capital Adequacy Ratio (CAR) of 434% as at August 2020. Set to empower the Sri Lankan Dream, Union Assurance offers Life Insurance solutions that cover education, health, protection, retirement, and investment needs of Sri Lankans. With 76 branches and an over 3000-strong workforce, Union Assurance continues to invest in people, products, and processes to remain agile and responsive to emerging changes in the Life Insurance industry.

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Ideal Industries acquires home grown e- commerce major Takas.lk

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Ideal Group, headed by visionary entrepreneur Nalin Welgama, in keeping with his ethos of growth through innovation, made a move pertinent with the “new normal” by acquiring one of the pioneers in the Sri Lankan e commerce industry, Takas.lk.

Having invested heavily in developing capacity in the Sri Lankan automotive sector, Founder and Executive Chairman of the Ideal Group of Companies, Nalin Welgama, is determined that a Sri Lankan built and operated company be in the forefront of e-commerce in Sri Lanka. “The Ideal Group has and always will be driven by innovation, hence our foray into the digital space with Takas.lk is both timely and appropriate, said Welgama. “We promise to strengthen Takas.lk, making it the most valuable e commerce company in Sri Lanka. The collaborative synergies of the Ideal Group of Company’s island wide touch points will further enable us to provide an unmatched service, hitherto not experienced”.

Takas.lk commenced operations in 2012 and since then has grown to be a household name in Sri Lanka. Indeed, Takas was the first company to introduce cash on delivery (COD), and enable the tokenization of credit cards. Since inception Takas has taken great pride in being a Sri Lankan company that has served Sri Lankans both here and abroad, adding value and giving satisfaction. Furthermore, the technology stack-which Takas operates on has been built completely in-house, and to date has enabled e-commerce businesses in Sri Lanka as well as overseas markets .

Speaking at the launch which was limited to a few stakeholders due to the Covid situation, Founder and Executive Chairman, Ideal Group of Companies, Nalin Welgama said “e commerce is the way of the future and is the new normal. e-commerce is here to stay, and even when the Covid situation eases, our life styles and methods of business have been irrevocably transformed. We will focus on expanding market share as more companies move their businesses online. What will be key from here onwards will be sustainability of demand from newly acquired merchants. The Covid 19 pandemic has accelerated the trend of online shopping and with it the gross merchandise volumes. Therefore we must capitalise on the prevailing strong e-commerce trends and provide many businesses a life line during these challenging macro economic conditions.”

As per statistics, Sri Lanka’s annual domestic e-commerce sales value including services is an estimated US$40-60 million. This is expected to grow to $400 million by 2022-23. “Currently, only 0.3% of Sri Lanka’s total annual retail sales ( $13 billion) are via e-commerce, thus the opportunity is huge”.

 

Takas.lk is known for its large manage-market place for electronics and under the new ownership will expand on this range of products.

Since it’s acquisition by the Ideal Group, Takas.lk has quickly expanded into the gift giving segment, daily essentials, and cakes/flowers. ” We will be working with Sri Lankan suppliers and empowering them, giving them the ability to function on a basis of ‘business as usual’ during these difficult times”. Takas’ new location on Rosmead place too is more convenient and better equipped to service their customers.

 

Subsequent to the acquisition, the existing Takas.lk management team including Lahiru Pathmalal will remain to guide the company through its transition and will work together with the Ideal team for a stipulated period in their current roles, ensuring a seamless transition. Commenting on the acquisition, Co founder Takas.lk, Lahiru Pathmalal said, “having been a part of Takas.lk from day one, I have a strong understanding of the key operations required for the success of Takas. I like to think I have a creative approach to the industry, and this combined with the wealth of resources the Ideal Group brings to play in the e-commerce game, makes me excited and motivated to help shape its future.”

Under it’s new mantle, Takas.lk has a vision of becoming ‘The’ one stop-shop for all consumer requirements and is committed to follow a service first philosophy!

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SLT Mobitel awarded prestigious ‘Project Management Excellence Award – 2020’ by PMI

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SLT Mobitel, achieved yet another significant milestone by bagging the most esteemed Project Excellence Award (PMI) 2020, by the Project Management Institute (PMI) for its Stage VIII Project themed “Project Rural MPowerment”.

Conceptualized to empower every Sri Lankan with digital inclusivity, the project facilitated rural areas by providing 4G technology across the country. Having embarked on the project in 2018 with two leading strategic partners, namely, Huawei and ZTE, the Mobitel team concluded the project 5 months ahead of its planned schedule. This multi-million-dollar endeavor involved establishing 5400+ base stations including over 3000 4G LTE nodes. As a result, people in and around the rural areas were provided with supreme connectivity and extended broadband coverage.

In 2019 alone, Mobitel made an investment of over USD 100 million in expanding its network and will invest another USD 25 million in 2020 to provide superior connectivity and broadband experience to every Sri Lankan. Having completed just before the COVID-19 outbreak, the project enabled school children to continue their education through e-Learning platforms and helped the corporate sector to adopt to the WFH concept with no interruptions. Further, the project not only enabled people in rural areas to connect with the world but also empowered the SME sector by facilitating them with broadband accessibility thus increasing their contribution to the national economy.

Commenting on the achievement, Lalith Seneviratne, Group CEO, Sri Lanka Telecom Group said “Being recognized internationally for a national level project by the Project Management Institute is a tremendous honor, and I would like to thank the Team Mobitel for their untiring commitment, dedication and loyalty to complete this project in record time. This high level of achievement has not only brought glory to Sri Lanka but has also shown that the skills and capabilities of local professionals to compete in the international market as well. I would like to thank our valued stakeholders, government officials and the PMI Sri Lanka Colombo Division, who went above and beyond duty extending their invaluable support in helping us to secure this coveted accolade”.

(SLT)

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