DSI projects new vision at 50th anniversary

A young man from Galle gets a job in a shop selling 'Good Year' tyres in Pettah and comes to Colombo. Even though the pay was meagre, he makes an effort to save a little money. When it was sufficient to start a little business, he begins to sell 'sudu redi' - white cloth, which was a scarce commodity at the time. World War II had just begun - in 1939.

Chairman DSI Samson Group Dr D.S. Rajapaksa

Having met a group of Tamil businessmen who imported goods from India via Velvetithurai, he starts going to Jaffna a couple of times a month, brings the cloth and starts selling on the pavements in Colombo. Carrying a bundle of cloth on his shoulder, he moves from place to place. It is tough going, yet he is so persevering.

With sales improving, he gets a

nephew to assist him. They move one step further - they erect a makeshift rack between the walls of an oil boutique and a dry fish outlet at Fifth Cross Street-Price Street junction and start selling textiles. As business improves the young man looks for a little shop and finds one in First Cross Street.

The Japanese air raid on April 12, 1942 forces the young man to abandon Colombo and get back to his native village Bataduwa. Back in Colombo when things settled down, he resumes business. Keen to expand the business he borrows Rs 250 from a chettiyar at an interest of two rupees per day. (It was increased to five rupees later).

Hearing of a place at Dias Place turning out shoes as a cottage industry, he offers to sell them at his shop on the understanding that the money would be paid after the shoes are sold. The business gradually grows and the sales staff increases to eight.

This is the beginning of the success story of Samson Mudalali - the founder of DSI, a leading footwear manufacturer and distributor in Sri Lanka today.

Diyanuge Samson who lost his parents when he was a child, was a self-made man who had confidence in himself. Hard work and honesty were the secret of his success.

He started importing shoes and at the same time set up a little 'factory' at Kaapiri Mudukkuwa in Pettah to make shoes.

With the restrictions imposed on imported products in 1962, he successfully negotiated with his Japanese business contacts to manufacture shoes in Sri Lanka. Machinery was imported and a workshop was set up in Galle. There was no electricity in the village at that time and the machines were run on a generator.

The range of products gradually widened - starting with ladies Ballerina shoes to slippers and children's shoes. Vehicles were bought to distribute the products throughout the country. The factory was expanded to manufacture other products as well - the first being travelling bags. Suitcases and brief cases were introduced later.

Having got married at the right age, Samson Mudalali brought up a well knit family with five sons and three daughters who, in due course, were groomed to take over the business. He promoted the sons to work with him during their university holidays thus providing them with an opportunity to familiarise themselves with the business.

DSI was established in Galle in May 1962 - Samson Mudalali's 50th birthday. After their graduation, the sons joined the business. The arrival of the second generation marked the beginning of a trend of modernisation.

Third generation directors celebrate 50th anniversary

A trip to Japan by the father and son Kulatunga gave them an opportunity to study operations at the Nishin Rubber factory and at the end of the week-long visit the owner offered the old machines which they gladly accepted.

DSI was expanding. With the enactment of the Business Acquisition Act, for fear of a possible takeover it was felt safe to re-name some of the companies handling different businesses. Thus Rajapaksa Engineering Works (fabricating and maintaining machinery), Taiyo Rubber Products (making shoes) and Galle Packaging (manufacturing wooden boxes for export) were born. Once the Act was repealed, these companies were renamed again as Samson Engineering Works and Samson Manufacturers.

Exports to Saudi Arabia was a big breakthrough as a result of the Israeli war.

The second generation saw the need for diversification. A garment factory was opened with Japanese and Koreans providing the expertise. With joint ventures being the order of the day after the liberalisation of the economy in 1977, DSI set up Lanka Polymer Limited as a BOI project in association with the Fiji buyer who was buying rubber products from BOI. Samson Exports Ltd concentrated on exports.

Since the 1980s the expansion has been rapid. Showrooms have been set up in key towns. Factories have been modernised with state-of-the- art facilities. Local and international awards have been won. The product range expanded.

DSI has not looked back and today there are 29 companies in the Group. Samson Mudalai's sons give the lead in managing the entire operation.

Meanwhile, DSI has not forgotten the community. Through numerous CSR projects, DSI maintains a close link with the community.

The second generation has strengthened the company making DSI a household name in Sri Lanka and capturing market leadership in the footwear industry. The third generation is gradually moving in to take the business to further heights.

To mark the 50th anniversary of the DSI group, the new vision is 'Local to Global' .

There are two main categories of DSI products which have been the main contributors.

The first is the core business - footwear. DSI claims more than 60 percent market share in the local market and the product range is being exported to more than 40 countries.

Specifically manufactured product ranges are sent to specific regions including Europe. The second category is tyres and tubes. Their products account for more than 70 percent of the local market share . Currently, these products are being exported to more than 60 countries.

The export business of these two categories has grown significantly over the years. In addition, the other product export businesses too play a vital role in achieving the global vision.

Over the past 50 years , the first and second generations have been instrumental towards the success and the market leadership the Group enjoys today.

They have been able to convert the single business entity in to a conglomerate in keeping with the founder chairman's corporate philosophy.

The task of the third generation will be to firmly establish the DSI brand in the region, increase its global presence and move forward diligently.

As DSI celebrates fifty years from the day it was established in Galle, it has 29 companies in the Group. The key companies are DSI Samson Group (Chairman Dr D S Rajapaksa and Managing Director Kulatunga Rajapaksa), D Samson and Sons (Pvt) Ltd (Chairman Nandadasa Rajapaksa) and D Samson Industries (Pvt) Ltd ( Jt Managing Director Kasun Rajapaksa).

The other second generation directors are D.N Rajapaksa, D. M Rajapaksa, D.R Rajapaksa, and D.A Rajapaksa.

The third generation directors are D.T.R Rajapaksa, D.D.K Rajapaksa, D.K.S Rajapaksa and Ms. D.D.S Rajapaksa. As the Chairman DSI Samson Group, Dr D S Rajapaksa said: "The leadership our father (D Samson Rajapaksa) provided us to achieve our business objectives and the support he gave us to live together and work together under one roof as brothers and sisters is legendary.

It is this guidance that has enabled all of us to be united and work together in taking the dream through to its 50th year.