Milestones

Plea of a textile tycoon in distress:

Give back my quota

By Priyantha Gamage

Name: Kumar Devapura

Date of Birth : 23rd January 1951

schools attended: St. Peter's College (1956-1960) Royal College (1961), Thurstan College (1962-1970)

Educational Qualifications: After leaving school he went abroad to do a Higher National Diploma in Business Management at Middlesex Polytechnic in 1971.

Career : Joined the 'Mayura Group' as a Trainee Production Assistant in 1977.

•Six months later he became the Production Manager.

• Got the opportunity of being the consultant and advisor in the setting-up of the biggest Garment Factory in Hong-Kong.

• Came back home in 1979 and started his own factory 'Thushara Garments'' with just ten sewing machines at Katubedda, Moratuwa.

• Set up the second factory under 'Tristar' name in Ratmalana giving employment to 1100.

• Started-off a collaboration with SR Gent, the company owning 27 factories in Barnsley, UK at the time with SR Gent - holding a 23% stake in the Group.

• Started exporting to 'Marks & Spencer' UK under 'St. Michael' label with the first order of 200 pieces.

Today he exports 50,000 dozens per month, the biggest exporter to Marks & Spencer from the Far-East.

This is a man who set a new trend in the national economy, embarking on a brand new concept of taking the industry to the villages and targeting the global markets.

A man who started with a single factory of just ten sewing machines today runs a chain of 30 factories employing 30,000 persons and earning Rs. 9 billion in foreign exchange.

But petty politics has put his group in dire straits today. In true fighting spirit of a entrepreneur he is holding up and hoping for a change of heart.

Q: What was your motive in taking the industry to the village?

A: I took the industry to the village, because I realised that it was the only way we could solve the unemployment problem. Also, when the girls get boarded in Colombo they cannot save any money. Their earnings are spent on lodging, food and transport, while their families starve. When they live apart their chances of marriage are also affected. Poverty leaves them no option but to come to Colombo to work.

Realising this I opened my first factory at Dodangaslanda in Karandagolla at the height of the JVP uprising. Today there are 1300 girls employed there. Even my eleventh factory has been established in Dodangaslanda.

What's more, I have developed a very successful and a very faithful workforce. I realised the value of this. Because they live in the village they do not spend on transport. All they earn can be saved. Their families are happy. Society develops. They wear gold, wrist-watches, good clothes. All because they can save. Not like working in Colombo.

As a businessman, I also had an advantage because there are no labour- disputes, no labour-unrest. Everyone comes and works with a lot of pride. They are very happy.

Since I realised its value, I started expanding the business in the remote areas. From Dodangaslanda I went to Mawathagama, Kamburupitiya, and other villages.

Q: How did you happen to meet the late President, R.Premadasa?

A:It was during the construction of the Kamburupitiya Factory that I met President Premadasa. He saw this construction. However, I didn't know him. I am an independent businessman who was doing something for the country the poor and my business.

I didn't have experience in going behind politicians or getting tenders and help. The President saw efforts and made inquiries about it. Ours was next to the Gamudawa site. And he walked to our site one day, introduced himself and invited me to lunch where I explained everything to him.

He was very impressed and said that he'd like to open that factory.

When he entered the factory which had 600 girls working under one roof, earning Rs 5000, he realised the value of my concept.

He said, "I want to set up factories in every remote village'' In his subsequent 200 Garment Factory programme I opened eighteen. I did not open those 18 factories to make money. I did not have a single feasibility report. I did it for the sake of my country and the people.

Q: How did the fortunes change?

A: Whatever happens I cannot go to a factory and tell my employees, I don't have a sufficient quota. I don't get any help from the government. So I'll have to close the factory.''

I am struggling to keep the 30 factories together with this huge work-force.

At that time we had to recruit the entire 30,000 work-force from Janasaviya recipients. We had to recruit unskilled girls who had not even seen a sewing machine. Calculate the losses. Exports cannot be made from day one from these factories. It takes one year to three years to achieve this phase of production.

I took the challenge, long-term. Our industry is a white elephant without quotas. I do 65% of my production on non-quota. So, at least the government or those responsible must see that Tri Star cannot be compared with another government factory. Policies must be there. But they must be flexible to support large groups who contribute substantially to the export economy.

I think it is very unfair to compare a person with one garment factory and one with 30 factories. And, mind you all of them are not in Colombo. They are in far-away places, 6 factoires down - south, five in Uva and 12in the North-western province.

If you calculate, my production cost, it is much higher than that of a Colombo factory. Therefore the Government must consider all these things.

Q: What do you want the government to do?

A: What I feel is that the government should appoint a committee. People ask as to why only Tri Star needs help. My humble request from the government and the President is to appoint a committee to analyse the Tri-Star situation. Let the committee decide.

When you consider the fact that I have given 30,000 jobs, my quota is a disaster. Some factories don't have a quota of a single piece.

I am doing cheap non-quota items and contracts losing money. I feel that the Quota-Board must comprise civil servants or government bodies. If it is to take independent decisions it should not be my competitor who himself is a garment factory chairman.

Representatives from the BOI the Central Bank etc. Appointed by the President or the Minister concerned should run the quota board.

Q: Where does Tri-Star stand today in the industry and the national economy?

A: If you analyse the number of factories and the jobs created, the value of Non-quota exports the value of foreign exchange earned Tri-Star is number one. Tri-Star is the biggest (net) foreign exchange earner to the country - Rs. 9.2 billion, according to customs statistics last year.

The second is only Rs 2.7 billion. The biggest employer is our group. The biggest non-quota exporter is Tri-Star. The largest exporter to Marks & Spencer from the Far-east is Tri-Star.

So, even though the group does all these things, if the quotas are not properly distributed we will be paralysed, losing Rs 30-40 million every month. It is very easy for me to close 20 factories, keeping the cream of my business.

But we have to think in a broader perspective. What I really can't understand is that the government is sending various ministerial delegations around the world appealing to investors to come here. They are trying to solve unemployment while a local who has given employment to so many is without the quota. After the PA government was elected I opened seven factories, creating over 7000 jobs.

Q: How many factories do you have right now?

A: Now we have 30 manufacturing plants and 8 support plants. Support plants make corrugated boxes and the ploy-bag plant. We have our own washing plant, embroidery plant, smocking plant and 3 big stores.

Q: How do you plan to overcome all these problems?

A: I have restructured the entire operation now. I have applied for a dollar loan from the World Bank. Once I get it, I want to pay up my loans to banks as interest is a killer. I have to pay Rs. 180 million for a year.

Q: How many employment opportunities has it provided?

A: A total direct and indirect number of 30,000 persons are working in the group.

Q: What was your export income for the last year?

A: Rs.1700 million. We export about 24 million pieces per year.

Q: What was your operation result for the last year?

A: Because of these problems and the vast expansion programme we had a huge loss of Rs. 500 million.

Q: What is your total investment like in the group?

A: I think around US $ 25 million.

Q: So, what is your appeal to the authorities concerned?

A: Coming back to the point, my only humble request is that, due to whatever reasons if the quotas were taken-out, based on the machine capacity, number of persons working, the government should restore my quotas to keep these people together.

How can I run a business without a single piece of quota. Policies are there. But you have to be practical. I cannot close down the factory just because there is no quota. So, I have to do non-quota, sub-contract etc.

My price margins are very low. So, I lose money. No bank is coming forward except the Seylan Bank. The Banks are only worried about their profits and interests. I am helpless. The bankers and politicians are not coming forward and there's nobody to help me. And they ask for results. How can I show the results?

I can show results if I close down 30 factories and put 30,000 people on the road. Because all my cream of business profits are pumped into 'Group B', to keep them together.

The funny thing is that, there is quota in the pool. But they are not giving it to me. Can you imagine that?

Just give me my entitlement. That's all I am asking. I am not asking for any excess quota. They have taken-out 400,000 dozens (pieces) of quota from. Tri-Star. I am only asking it back.

Q: What are your plans for the future?

A: Once I get this dollar- loan, my priority is to settle my debts. Then I want to slim the group. We have put up a lot of systems on the new management skills into the operation. For instance, we want to divide this big organisation into small groups and give the responsibility to each Deputy-Chairman. And we have started a new operation with GAP on a very high value order for the US market.

I want to slim the group and take it forward smoothly with a lot of new machinery, new technology etc., improving efficiency, productivity etc. So that we can be in the world-market in the proper manner.

And then, I want to give the responsibility to the people and retire. Because, I want to tell you very openly I don't want this concept to die. It will take someone else another twenty years to create what have done today.

Special achievements

* Winner of Presidential Export Awards for garment industry in 1987, 1991, 1992, and 1993.

* Winner of Special Presidential Export Awards in 1992, 1993, 1994 and 1995 for being the highest foreign exchange earning enterprise in the garment sector.

* Winning The National honour of "Deshabandu'' in 1992 for his outstanding services to the people and nation.

* In 1994 he was adjudged the first runner up in the entrepreneur of the year competition of the Federation of Chambers of Commerce and Industry of Sri Lanka, and the outstanding entrepreneur of the year 1995.

* In May 1996 he was awarded the gold medal by the International Association of Lions Club (District 306 A) as the outstanding citizen in business and commerce.

* In 1998 he was awarded the ''Mahaweli Randiyara'' by the Association of United Engineers of the Mahaweli Authority for distinguished services to the nation.

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