|
|
 |
 |
| Sunday, 30 May 2004 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
Tri- Star reaches for the stars by Elmo Leonard In January 2005 the Multi Fibre Agreement, under which garments are exported on quota basis, will end. Of 800 of Sri Lanka's apparel export factories, 50 are geared to meet the situation, of a globally competitive export apparel arena, according to Chairman, Tri-Star Apparel Exports (Tristar) Kumar Dewapura.
A leading personality in the export garment industry said that with the end to the quota system, Sri Lanka's apparel export industry, employing 200,000 largely female workers, will gradually fall apart. "Quotas are now being supplied at a loss; sometimes, there are small profits, but profits are diminishing," he said. However, Sri Lanka's largest apparel exporter, Tri-Star says that the scrapping of the quota system is the best thing that could happen to Sri Lanka. This situation must be capitalised upon, and intelligently, where exports could soar and the country could earn many times more forex with shipments of up-market products. Tri-Star has done just this, since they were denied quotas unjustly (as they said) from 1992.
Since receiving no quotas, 12 years ago, Tristar, which commenced in 1979, with one small factory, went up-market, constantly replacing its machines which could do faster and better work and bring down cost of production. The company's current services include computerised embroidery, hand and machine smocking, pleating, transfer printing and screen printing. Hand embroidery work is undertaken on a large scale, often done in the workers' rural homes. These products bring in premium prices from ready markets. Tri-Star's deputy chairman, Sarath de Silva said. What the Sri Lanka government should lobby for is the abolition of import duty of Sri Lanka produced garments into the United States, Dewpura said. Even at this eleventh hour, the government of the day should form a committee of people with open minds, and with the Sri Lanka Export Development Board (EDB) and others from outside and inside the industry, plan out how the export apparel industry could find other markets which bring in far more profits. With factories undertaking up-market exports, more money would come in and workers could be paid higher salaries, Dewapura said. Supplying garments under the quota system is turning out garments in the manner of slaves, where the masters name the category and price, Dewapura said. In the Sri Lankan mentality, a lot of companies fight for the same market, Tri-Star director, Shion Dewapura said. Further, whichever country supplies garments on quota, including China, comes under corruption, Dewapura, said. Internally, quotas are given on receipt of commissions, which in each case, could run into millions of US dollars, Dewapura alleged. "And that is why some people want the quota system to continue," he said. "Sometimes, we begged for quotas, but no longer," he said. In 2002, Tri-Star had closed eight of its factories. While most banks rate garment industries as "dead industries" Chairman Seylan Bank, Lalith Kotelawela supplied the funds needed to open these factories. Seylan Bank earns Rs 10 million interest per month, from loans, given, to these companies, Dewapura said. A US garment buyer who visited Tristar factories, here, placed an order for millions of pieces, at a price, they named. The company chairman had asked for six months to begin production. He purchased new machinery, which could produce the orders faster and at a profit. If he had attempted to produce the goods on the slower working machinery the company had at the time, it would not have been feasible to execute the order. "The problem with Sri Lanka's apparel industry is that far too many companies have outdated machinery," Dewapura said. Tri-Star sends out 30 million pieces per year mainly of the value added types, reach several world capitals, including those in UK, USA, Canada, Hong Kong, South Africa, Australia, Israel, Jordan and others in Europe and Asia. Tristar's 25 fullyfledged apparel units supply to such brand names, Marks and Spencer, Studio 1, Petite, Style and Co Woman, Classics Collection, Disney's 102 Dalmatians, Old Navy, Blue Jeans, San Francisco and New York, Cargi ,Gap, Just Friendsn and Karen Scott. Tri-Star buyers in USA are, No Excuse, Kikoma, Oxfor, Halmode, U.S. Again, Regatta, Fila, Classic, Heart Strings, Speigal, Susan Bristol, Capital, Mercury, American Eagle, Americo Group, Jamie Brooke, Celebrity, Lee Fund, Do-well, Macyu's Victoria Secret, Lane Bran, Besty, Chorus Line, Warner Bros and in Canada, Le Mans. Tri-Star 25 plants spread around the country have eight support service centres backed by a total workforce of over 25,000 skilled workers and 12,500 machines. Tri Star also operates offices in UK, USA, Germany, Tanzania and
Uganda. With 25 units, Tri-Star could produce on sub-contract for other
local exporters, Dewapura said. In December this year, Tristar is expected
to sign a contract with Wall-Mart, for the supply of 10 million pieces of
sports and swimwear to be produced during 12 months. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
