Trust and service excellence, the driving force of Browns
by: Gamini WARUSHAMANA
 |
 |
| James Brown |
R.L. Nanayakkara |
The Browns Group, is a century-old company in Sri Lanka founded by
British colonial entrepreneurs in the 19th century. There are many
century-old companies, but most of them today maintain only the company
name or brand names while they engage in totally different businesses.
The economy of Sri Lanka has drastically changed over the last
century and these companies too had to adjust and move away from the
core businesses that the colonial masters set up and had to tap new
opportunities and enter into new businesses during the past 64 years
after Independence. Browns Group too has undergone these changes.
Core values
The core values that remain unchanged with the Browns Brand tag
heritaged from its founder James Browns Group Co. CEO of Browns
Investment PLC Rimoe Saldin said that it is "trust and service
excellence" that goes with Browns and we maintain these core values
maintained by the founders of the company.
The company ensures its traditional business areas as well as
diversified into new areas as the business environment of the country
changed. However, in all areas of business we maintain the trust of the
customer and excellence in all products and service we deliver, he said.
History
 In 1872, James Brown a 25-year-old engineer and mechanic by
profession from Hampstead, London reached Ceylon seeking fortune and
adventure. By that time the tea industry of Sri Lanka had just begun.
The tea shrub was introduced to Sri Lanka in 1824 and the first tea
plantation was started in 1867 by James Taylor in Loolkandura estate in
Kandy. The first tea factory was started in 1872, the year James Browns
came to Sri Lanka. However, he had to start his career from zero and set
up a bicycle repair business near Gleneagle in Hatton. Brown & Co
Limited was launched in 1875 and the company started manufacturing,
repair and import of all types of agricultural and farming machinery.
In 1892, Brown & Co Ltd was incorporated as a locally registered
"rupee company" with a share capital of Rs. 500,000 and entered into the
plantation industry focusing on the manufacture and servicing of
machinery for the tea, rubber and coconut industries which were the
driving force of Sri Lanka's economy during that period.
The business grew and expanded and in 1897, the Colombo and
Nawalapitiya establishments were set up.
In 1947, the Browns Group emerged as Brown & Company and bought the
total equity capital of Hatton Bank Limited and the Hatton Transport and
Agency Co. Ltd.
In 1959, Browns became a "Ceylonese Company" with a Ceylonese
Trader's Licence which grants the right to trade with all countries.
From 1959 to 1973, branches were set up in Ampara, Badulla, Hatton,
Haputale, Jaffna, Kandy, Kurunegala, Lindula, Nawalapitiya, Paranthan,
Udapussellawa and Vavuniya.
In 1960, it was Incorporated as an Associate of the Browns Group of
Companies in collaboration with British Batteries (Overseas) Limited and
the Development Finance Corporation, Associated Battery Manufacturers
(Ceylon) Limited began commercial production of automotive batteries in
1961.
Also in 1960 The Browns Group acquired Hoare & Company (Ceylon)
Limited, one of the oldest and most established engineering firms
specialising in marine engineering.
The new company was named Engineering Services Limited. Browns Group
Industries was incorporated in 1963. |
Today Browns Group is a premier bluechip company in Sri Lanka with a
137-year-long history and reputation. It is one of the most diversified
business entities in Sri Lanka with over 20 subsidiaries and associates
and listed on the Colombo Stock Exchange. According to the annual report
2010/2011, the Engineering Service (Pvt) Ltd holds 23.41 percent of
shares while Masons Mixture Ltd holds 19.38 percent shares of the
company and are the main shareholders.
Other shareholders have less than 5 percent equity of the company.
At present, the company broadly covers seven business sectors;
investments, plantations and agriculture, power generation, marine and
manufacturing, home and office solutions, environment and pharmaceutical
and travel and leisure. The traditional business sectors have been
growing and with the end of terrorism new areas have opened and the
Browns group is exploiting these new opportunities, Saldin said.
"Browns Investment PLC is our strategic investment vehicle which we
invest in strategic businesses. Browns Investments has reached out to
invest in a number of sectors including leisure, construction,
plantation and exports. The company has grown rapidly in the past few
years and it is exceptionally well-positioned to capitalise on the
economic boom," Saldin said.
"It is run by a strong team of dynamic individuals who balance
opportunities with risk to provide exceptional returns to its
stakeholders. In addition to long-term, medium-term investments and
joint ventures, the company also manages a portfolio of investments and
listed securities," he said.
LOLC Leisure is a joint venture between the LOLC Group and Browns
Investments where Browns Investments holds 30 percent stake. LOLC
Leisure has the controlling interest and management of the Eden Resort
and Spa, Riverina Hotel, Club Palm Garden and Tropical Villas.
LOLC Leisure Ltd has recognised the increased potential that exists
within the Leisure Sector at large, and made wise move in investing in
these hotels, which are placed on the golden Mile along the South
Western coast of Sri Lanka. In the plantation sector, Browns operates
its business through Free Lanka Capital Holdings. There are two
plantation companies, Pussellawa Plantations Ltd and Mathurata
Plantations Ltd. The history of Pussellawa Plantations Ltd dates back to
the 1840's and was established by the Worms Brothers. The company
comprises 11 Tea Estates, two Green Tea Factories, nine rubber estates
and fair tea cum rubber estates.
Plantations
Free Lanka Capital Holdings is the holding company of Pussellawa and
Mathurata Plantations Limited, encompassing 31 tea estates with 19,000
acres producing 12.5 million kilograms of tea per annum, and nine rubber
estates producing four million kilograms of rubber per annum. There is a
further 3,500 acres of land under commercial timber.
Saldin said that in addition Browns has entered into a partnership
with LOLC and the government to refurbish the Hingurana sugar company.
The company has also entered into the construction sector. Browns
Investments acquired a 10 percent stake in Sierra Constructions as well
as a 10 percent stake in Sierra Holdings.
The Sierra Group is a well-known entity in construction and is
associated with technical expertise, reliability, and superior quality
of work. Browns Investments and the Sierra Group jointly hold Agstra
Fertiliser (Pvt) Ltd which manufactures fertiliser and planting
material, crop care products and agro chemicals. Another success of
Browns is its involvement in Royal Fernwood Porcelain. The reputed brand
name manufactures high quality porcelain tablewear for export at its
facility in Kosgama. After acquiring the company which was a loss-making
venture, Browns has succeeded in turning it to a profit making venture.
 Browns also owns Excel World, the recreation and amusement park in
the heart of Colombo.
Saldin said that the company has shown significant growth during the
past five years after the new management took over the business. The
2010/2011 financial year revenue increased by 35 percent, net profit by
186 percent and share price by 230 percent. The Browns Group is chaired
by R.L. Nanayakkara and the Board of Directors comprise A.L.
Devasurendra, N.M. Prakash, H.P. Janaka de Silva, I.C. Nanayakkara, R.N.
Asiriwatham and S.V. Somasunderm.
The growing economy has created many opportunities. However, the
challenges are global economic crisis and increasing interest rates. Tea
and rubber prices have dropped and the cost of production is increasing
due to wage increases. If wage increases are not balanced with
productivity increase, it will create serious issues in the plantation
sector, Saldin said.
|
