Sri Lanka could capitalise on the reputation of apparel industry products and become a more competitive player in the global market place. The country’s abilities in terms of skills and technology use could be put to good use to expand the market base and generate more foreign exchange, Senior Vice President of the National Chamber of Exporters and the Chairperson of Ramya Holdings Ltd., and Trendywear Ltd., Ramya Weerakoon said.
“The future of the apparel industry will be design driven. Speed to market will play a key role in sustaining demand. Sectoral growth will be fueled by digitalisation of the process and technology will play a vital role in making apparel industry a key economic driver of the country,” she said at an interview with the Business Observer.However, she said that the Government needs to implement the initiatives taken to develop the country especially with regard to exports as without the implementation of initiatives nothing could be achieved.
Excerpts:
Q. The Government has taken initiatives such as the National Export Strategy and Enterprise Sri Lanka. How would this help the country, especially the export sector?
A. The initiatives taken by the Government to develop the country is a positive step towards the future. Having said that, I must stress that these initiatives need to be implemented to achieve the desired results. Just having initiatives will not be sufficient as they must be implemented and put in to action to gain advantage.
The present initiatives are still at the verbal stage. Therefore, there is a long way to go. It is also necessary to think about the practicality of such initiatives. The exporters should be given a platform to advocate in a more resilient environment.
For example, we do our costing for a year, but we are unable to adhere to these figures due to the ad-hoc policies brought about by the Government. Where the apparel industry is concerned, the main feature in making the process digitalised has not happened. It has far reaching benefits. It will be more cost effective and ease the time taken.
Q. What are your suggestions to overcome the labour shortage in the apparel industry?
A. There is a labour shortage. However, what the industry believes is that we have enough people, but with the various opinions and questions about the dignity of labour some people do not come to the industry.
This is relevant to the fields of carpentry, masonry and plumbing. The dignity of labour should be maintained in the mechanical section in the apparel industry for youth to join the sector.
Unlike in the past, the present day youth are educated. They need certain recognition. Though, in the apparel industry staff are paid much higher than the office workers, there is a reluctance among the younger generation to join the industry.
The Government with the private sector need to take measures to address this situation as it will affect the industry in the long run. However, the private sector alone cannot do this.
Q. Has the rupee depreciation helped the apparel industry?
A. Most people think that the rupee depreciation is a boost to the export sector. There is a short term gain, but in the long run the sector suffers due to the depreciation effect. As exports, especially, apparel inputs are mostly imported (over 60% ) the advantage of the devaluation of the rupee is short lived.
The long term effect will be increased consumer prices and the wages which will affect the income generated by the industry. Other industries which are import based will also face a similar situation and there will not be much of a benefit in the long run.
All the products which are exported from Sri Lanka should be in value added form to gain advantage of the export supply chain. These products should be exported to top end markets to ascertain better markets and better prices.
We, in the apparel industry have entered the high-end garments segment where small quantities of high priced products are exported. We should develop other sectors too to export value added products.
The industry needs to achieve technological advancement and skill development while introducing systemised digitalisation. However, the apparel industry is well ahead of the other industries in this regard.
The Government should support in the field of research and development activities. This will help the industry to remain in the competitive export market.
Q. In your opinion, where will the apparel industry be in the next five years?
A. The apparel industry should focus on improving quality further while concentrating on increasing value and not the volume. The industry needs to focus on value addition to earn more foreign exchange.
The industry will be further mechanised in the future and other sectors too will follow this trend. High value and low volume garments will be the trend in the future.
However, we should be geared with high tech and high skill systems in the industry with mechanisation and computerisation. It will also require to enhance worker skills to handle the advanced systems of operation which also include 3D systems which are there in order confirmation to delivery. While concentrating on up-market demand, measures should be taken to have a short lead time.
The industry will be design driven, work with speed to market, smaller volumes and high values. The e-commerce business will be picking up along with the retail business.
Q. What are your suggestions to develop the industry further?
A. We import fabrics from Korea, Thailand and China. If we could produce these fabric locally, we could save a lot of foreign exchange as well as generate employment for our youth.
Fabric manufacturing facilities could be set up with foreign partners as joint ventures. The Government should consider this option seriously and support the apparel industry which will be able to reduce the cost and time taken in meeting the global demand. The dignity of labour is the key factor in attracting young blood to the industry. Sri Lanka has an intelligent workforce and it is an asset for any industry.
Q. What is your contribution to the local apparel industry?
A. My company, Ramya Holdings is the parent company of Trendywear, Ramya Horticulture, Aditi Infinity, Southgate Property Development, and Ecorich.
Ramya Holdings Ltd. and Trendywear Ltd. celebrate its 30th anniversary this year. My two daughters are also involved in the business. Mahika Weerakoon is the Managing Director of Ramya Holdings and Thushari Weerakoon is a Director of Ramya Horticulture (Pvt) Ltd.
We entered the apparel industry with the setting up of Ramya Apparels Ltd. in 1988, comprising 35 machines and 54 workers. The company was restructured in 2003 with the incorporation of Trendywear Ltd. with two factories and a workforce of 1000 and currently has five state-of-the-art factories in Kadawata, Katupotha, Adhikarigama, Delgoda and Wellawa, providing direct employment for over 5,000 employees.From its inception, the company earned an excellent reputation from clients for quality of products, consistency, reliability and timeliness of delivery.
Due to this it has become the preferred choice of its clients for high quality wear for ladies and children. The fully integrated infrastructure of the company allows the production of a wide range of apparel while paying great attention to detail.
The company provides a comprehensive product range including Knit and Woven garments, dresses, skirts, blouses, pants, jump suits, school uniforms and corporate wear. The factories of the company currently handle large production volumes of more than 8.5 million pieces of high quality garments annually.
The values of the company entail honesty and integrity ,flexibility, accountability , passion for excellence, trust and mutual respect, entrepreneurship and innovation and team work. Trendywear Ltd. serves customers in the USA, the UK, EU countries, Australia and the Middle East. The company has achieved excellence in business aspects related to health, safety and human ethics by acquiring certifications such as ISO 9001-2008 and Wrap Platinum.
The factories of the company are well equipped with modern hardware as well as software for designing, cutting, quality assurance and packing. The manufacturing units are well supported by a fully equipped sample room with CAD/CAM systems.
These are manned by a dedicated team of professionals catering to each and every design and development requirements of customers. Innovation is a creative science engaged by the company, wherein products are developed to create a unique demand in the global market place, through the combination of an innovative spirit, and modern technology.
The Company has implemented a mandatory framework to become an eco-friendly organisation, and to advance sustainability, through clear guidelines for the prevention, reduction, and elimination of harmful effects to the environment and natural resources.
Employees are considered to be the strength of the company, and are driven by continuous learning, valuing, and nurturing the potential of each individual to enhance talent, knowledge and performance.
As a people intensive business, great emphasis is placed on the development of skills, as well as the motivation of all workers. The process of empowering the workers from the factory floor to the Board Room consists of challenging the status quo, expression of ideas, use of innovative thinking, and decision making, to inspire the pursuit of excellence.
Q. How do you plan to capture the local market?
A. The group’s local wing – Aditi Infinity Ltd. is specialised in fashion garments for the local market. The label ADITI was launched to cater the local clientele to meet high demand for quality fashion ladies wear in Sri Lanka.
The company is the stepping stone of the Group to move towards manufacturing high value fashion garments and brand promotion to high-end local and international market.
It owns four retails shops in few major commercial cities in Sri Lanka and has expanded itself in the newly opened super luxury shopping malls in Colombo while initiated its first overseas retail business in Australia and web based business in Europe.
With over 75% of the workforce of the company being female, a difference is made to their lives by fostering pride in their job, as well as an appreciation of their place in the organisation, the community, and the country. A safe and secure work environment is provided to them to thrive in their careers, and their personal lives.
Q. As an entrepreneur what are your immediate concerns?
A. Pricing is a decisive factor as cost of inputs and market conditions fluctuate rapidly. The labour cost is also high compared to regional players. However, there are positive factors too.
The country has a good reputation with regard to the apparel sector and the quality of our products is high. Due to having a high literacy rate there is ease of communication.
Though, reaching theUSA market is difficult due to non availability of fast transit vessels, speed to market regarding the European market is satisfactory. The younger generation’s attitude of working hard is also a concern. This has become a social problem not only in Sri Lanka, but globally.
Pic: Chaminda Niroshana