Leading fund manager Nimal Perera says profits are possible even at hard times, “it’s all about managing one’s business”
“While I was serving the PABC, the biggest milestone in my life took place, as the young business tycoon Mr. Dammika Perera approached me and hired me as his Fund Manager. The relationship I started with Mr. Perera, became a journey of success for both of us, as we were able to acquire a number of companies to our Vallibel Group”
According to him, trust and loyalty have today made him, the closest confidant of Dammika Perera and resulted in holding nine director posts in Dammika’s companies.
Today, he is the MD/CEO of Royal Ceramics, Vice President of PABC, MD of Fortress Resorts Ltd, MD of Vallibel Electric (Pvt) Ltd, Group Finance Director of Connaissance Holdings and a Director in LB Fiance.
“I do not agree with that. If the Sri Lankan economy is performing poor, how can the banks in the country perform, so well? Just have a look at Commercial, Samapth and HNB banks and their profits. We should agree that, they are making billions of money. No need to go far, just look at our Royal Ceramics. I’m proud to say that, we have increased our profits, capacity and yield annually. This year, 2007-2008, is the best year for Rocell. We will record the highest profitability and the turnover this year, in the history of the Royal Ceramics. How can we achieve such revenue and profitability? We also have to pay Rs.300 million as interest. Instead of complaining you should try to work hard and have profits even during times of crisis.”
By Indika Sakalasooriya
He is a man who describes himself as a bottom-top man, who came to Colombo from a remote area of the country, with empty hands, but with a head full of money making ideas.
“I describe myself thus because, I have a very humble beginning. I’m not a person from Colombo, but from Rambukkana. I did not have the sophisticated education as most of the CEOs or MDs of present day. I received my secondary education from Pinnawela Central College, Kegalle,” Nimal Hemasiri Perera, leading Investment Advisor and Fund Manager, says smilingly.
“I started my career as a teacher. I first taught at a Pirivena in my hometown, and then moved to Colombo, in 1977 and started conducting tuition classes. My main aim in coming to Colombo, was not to conduct classes, but to do my chartered accountancy exams. Simultaneously, I enrolled for a four year diploma course in commerce subjects equivalent to a degree in the Technical College, Maradana”
While pursuing his education, Perera started conducting classes for both O/L and A/L students.
“I taught Social Studies for O/L students, and for A/L students, it was mainly Accountancy and Economics.”
As time went by, the protagonist in our story had become a well known tuition master, especially in Moratuwa, Panadura and Kalutara areas.
“As a teacher, I was making a lot of money and as I became so tempted for it, I gave up my education and still I remain, as a drop out”
“Then I joined Shermans and I was given the responsibility, to mange the company’s funds. As a result of that, I got exposed to the stock market, and as time went on I was managing Shermans’s funds, while managing my own, in a large scale”
Another career change came his way, as he was offered the post of Assistant Marketing Manager in the PABC bank.His talent for marketing and public relations, overwhelms his ability in accountancy.
“While I was serving the PABC, the biggest milestone in my life took place, as the young business tycoon Dammika Perera approached me and hired me as his Fund Manager. The relationship I started with Perera, became a journey of success for both of us, as we were able to acquire a number of companies to our Vallibel Group.”
According to him, trust and loyalty have today made him, the closest confidant of Dammika Perera and resulted in holding nine director posts in Dammika’s companies.
Today, he is the MD/CEO of Royal Ceramics, Vice President of PABC, MD of Fortress Resorts Ltd, MD of Vallibel Electric (Pvt) Ltd, Group Finance Director of Connaissance Holdings and a Director in LB Fiance.
Following are the excerpts of a conversation, The Nation Economist had with him to gain his insights about the present state of the Sri Lankan Economy, and the business environment.
Q: Today most of the business people grumble that, the country’s economy is going down and doing business in the present context, is not at all a pleasant experience. How do you perceive this situation?
A: I do not agree with that. If the Sri Lankan economy is performing poor, how can the banks in the country perform, so well? Just have a look at Commercial, Samapth and HNB banks and their profits. We should agree that, they are making billions of money. No need to go far, just look at our Royal Ceramics. I’m proud to say that, we have increased our profits, capacity and yield annually. This year, 2007-2008, is the best year for Rocell. We will record the highest profitability and the turnover this year, in the history of the Royal Ceramics. How can we achieve such revenue and profitability? We also have to pay Rs.300 million as interest. Instead of complaining you should try to work hard and have profits even during times of crisis.
Q: Being a key player in the local tourism scene, can your explanation also be extended to the leisure sector?
A: Leisure sector is not doing well, may be due to the macro economic situation, prevailing in the country. However, I can still argue on the matter. Today the whole world is facing the same situation, we are facing here, more or less. Therefore, I don’t see any rationality, of some countries having travel advisories on us. Anyhow, we have to accept that, these things have affected our country badly. However, in spite of all these, most of the companies in the leisure sector are doing fairly well. Even in our group, only the Fortress is making losses, due to heavy investment and interest payment. Amaya and other leisure properties are doing well. As I said, it is all about managing your business properly.
Q: At present, most of the businesses are speculating on moving out of the country. Being a director in nine companies, that engage in starting from leisure to manufacturing, to plantation, any plans to venture outside the country?
A: At the moment, in terms of leisure sector we do not have plans to expand into other countries or regions, due to lack of experience and to confess, we do not have enough resources to do that, too. But we have ambitious plans, when it comes to our industrial manufacturing sector. At the moment, Rocell is seriously considering, having a presence in the Indian market. In fact, at the end of this month, I’ll be visiting India, to see the possibility of opening up a factory there. Most probably, we’ll do this venture with Lanka Ceramics run by the Page family. Today we hold a 25 percent stake, in Lanka Ceramics and the Pages are in very good terms with us. At the same time, we have signed a Rs.1.5 billion agreement with the BOI to manufacture construction materials, specially roofing products.
Apart from that, we have already invested in a sanitary wear project, called Rocell Bathware, and most probably in June or July, we would be able to put these products into the market. We are planning to go for another tile factory in Kiriwaththuduwa, with a capacity of 15000 square meters.
Q :You said that, your group has ambitious plans in the manufacturing sector, specially building materials. But it is perceived that, the local construction boom is slowing down largely due to high interest rates and inflation?
A: Right now the construction industry is doing well in Sri Lanka. Many of us have mixed up the construction industry, with the high rises in Colombo. There is a problem with the high rises, condominiums and high end apartments, that we all sincerely have to admit. But there is a huge growth in the general construction industry including houses, offices etc. and that is why, we are increasing our turnover day by day. In March, Rocell recorded the highest ever turnover of Rs.440 million in Royal Ceramics history, and that was our annual growth, six years ago. In addition, every month we are making about Rs.50-60 million net profit. So how can one say the construction sector is experiencing a recession, and the Sri Lankan economy is going down?
Q: According to you, despite having the highest interest rates in the region and inflation literally hitting the roof, the Sri Lankan economy is performing well and good for businesses?
A: Some people with vested interests are saying various things, may be to tarnish the government’s image. They are the ones who say that, the industries are not moving and economy is going backward. But have a look at the growth rate of the economy. During the last three years, the country has maintained a growth rate around 6 percent, having a war in the backdrop. I think the Central Bank Governor is doing a very good job. There may be sectors, which are not performing well, due to macro economic situation in the country. But I should say relatively the country’s economy is doing well, and still there are enough opportunities for business.