Sri Lankan garment manufacturers are optimistic about building partnerships to reach pinnacle of garment supplying by 2012.
Mahesh Amalean Chairman of MAS Holdings says partnerships have propelled his organization from a small factory with 60 employees 20 years ago to 39 manufacturing facilities in six countries employing 41,000 with a turnover of US$700 million, at a recent International Textile institute conference in Sri Lanka.
While this is the success story of one garment manufacturer many other smaller apparel manufacturers in the country have been forced to close down there businesses. The abolishing of the US quota regulations left many factories that depended on business form America stranded, leading way to countries like China, India and Vietnam.
The Liberation tigers of Tamil Elam (LTTE) have been at war with the government for over 35years costing over 60,000 lives. Their most recent aerial attack launched while the whole nation was watching their team play the world cup cricket final against Australia, cost the damaged Shell Gas Company US$ 700,000.
The apparel industry in Sri Lanka supplies 50% of its annual revenue, with around 95% of the exports being on FOB (free on board) basis. Recently terminal handling charges saw a steep increase by 35%. Noel Piyathilake, Chairman of the Sri Lanka Apparel Exporters Association in a press briefing said it hurts the exporters to not have a choice of picking a shipping line as buyer do all the negotiating.
"So we (garment manufacturers) don't have any choice but to use the specified shipping line. When we try to export, they ask us for more money to take the goods”.
China's Consumer Price Inflation rate dropped 0.1% in April to 2.9% compared to March according to the country's National Bureau of Statistics, while Sri Lanka's races at over 17% and garment factory workers unions petitioned for a wage increase late last year, following the setting up of the industry's new slogan; “Garments without Guilt”
So what is the plan that will alleviate Sri Lanka's apparel industry and set it as a leader in the business?
Mahesh Amalean whose organization MAS Holdings has a record of accomplishment and beating the odds says they did by building “long term partnerships” built on openness and trust with each partner recognizing, agreeing and focusing on its strengths. The foreign partner has tended to bring in the market, product knowledge and technological know how, while MAS has provided local knowledge, management and a skilled workforce.
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