SMEs go for joint ventures with Indian brass companies

by Elmo Leonard

Fifteen happy SMEs and one large non-ferrous manufacturer returned to Sri Lanka from a visit to Jamanagar and Rajkot in Gujarat, India. They were less captivated by visiting the world's hub of cast metal manufacture, and more, by the realisation that they are within reach of improving the quality of their output, to qualify import substitution and to meet overseas demand.

And, more specifically, of going into joint ventures with Indian companies and the possibilities of subcontracting, when India cannot meet her export demand. The India - Sri Lanka Free Trade Agreement would also be useful to exploit.

Deputy director of Sri Lanka Export Development Board (EDB) Prasanna Jayasinghe, who led the team, said that Jamnagar's brass parts manufacturer supplies the largest part to automobile and cycle tube valve users in the world. Backed by the precision and quality of their products, they reach European and North American markets.

Then, through other marketing channels these products proceed to UK, USA, Canada, Middle East, Europe, Africa, Sri Lanka, Pakistan, Indonesia, Malaysia, Singapore, Japan, Bangladesh and beyond. Sri Lanka's exports of brass products are negligible, but now, their enthusiasm is high.

Local, commercial brass manufacture is known to have begun in Dalugama, in the suburb of northern Colombo, with the assistance of the Portuguese, in the 16th Century.

The local manufacture covers most of the brass needed in the building of houses and factories, but in 2005, imports from India, made up Rs. 35 million and total imports, Rs. 78 million ($780,000), centrifugal pumps Rs. 5.8 million and material needed for furniture manufacture, Rs. 227 million ($2.3 million). Sri Lankans can from now develop their skills towards meeting import substitution in no mean way, Jayasinghe said.

The companies who visited India include Samanala Brass Industry, Dalugama; Asiri Industries, Malabe; Bopitiya Auto Enterprises, Pamunugama; Zenith Engineering, Malabe: Auscar Auto Enterprises, Pamunugama; Auscar Engineering Services (Pvt) Ltd, Ja-ela; Rohan Metal Industries, Kelaniya, Sudath Brass Fittings, Ragama; SMS Distributors, Dalugama; MDH Fibre Industries, Kelaniya; Priyantha Industries, Kadawata; Sampath Industries Panadura; Lucky Brass, Dalugama; Nilwala Industrial Components Malabe and ACL Cables Ltd, Colombo 10, who puts out copper cables, and is a large manufacturer.

Sri Lanka has agreed to purchase brass manufacture machines and equipment from India while in return receive technical know-how.

The exposure program had enabled the Sri Lankan delegates to observe how the Indian non ferrous industry was developed and modernised to meet the Indian and international market requirement of engineering products.

The sub contracting possibilities include engineering products industry in the area of automotive spare parts made out of brass, Jayasinghe said.