Prasanna Kurukulasuriya,
Chief Executive Officer,
Pragmatic International
Expressing his views to new entrepreneurs, Prasanna Kurukulasuriya,Chief Executive Officer, Pragmatic International says start ups should not have a swift schedule. They must have dreams. Without dreams they can’t run the business. However, they must allow a certain period to achieve their goals. Prasanna’s personal view of handling a business is that within a short period, no one can do everything. Some people try to do so and face difficulties and negative results. Talking to Business Management Digest, Prasanna Kurukulasuriya, CEO Pragmatic
International says that he has come a long way in establishing his company in the hospitality sector and has made good progress as a reputed service provider in the Industry.
Following are excerpts of the interview:
Why did you choose this sector?
I was into finance in early 1980s, working for audit firms and obtaining my financial qualifications. Thereafter I worked as an accountant for Associated Auto Industries who manufactured construction items like roller doors, roofing sheets, etc. I was promoted as the General Manager after seven years and was with that company for 10 years. Thereafter, I began my own business, entering the construction business, building commercial units, housing units, etc. I was in that business for about 10 years and finally realized that the construction industry at that time was not prospering as the economy was not that stable.
We started this business on a small scale with only three workers at Battaramulla. After about six months, we recruited more employees and also increased our capital. We continued in Battaramulla for about two years. During two years in business, I realized that nobody in this
business had opened a proper showroom. Most of them have small offices and stores. We saw this as a setback in the industry and used this opportunity to grab new business which resulted in opening our current showroom in 2013 located in Pagoda Road, Nugegoda. We deal mainly with European products as most people have much confidence in European brands. Today most of the Institutions look for dependable products and therefore they come to us. Our company does not cater to homes or domestic usage but to industries and commercial kitchens. Our kitchens are tailor-made, designed according to the customer requirements. The capacity of the hotel, number of restaurants, rooms, wedding receptions requirements etc. are taken into consideration in designing a kitchen.
Our team of designers present a number of designs for selection as most of the Chefs often want changes or special features to suit their individual requirements. Thereafter, on confirmation of the proposal, we provide service drawings such as plumbing, electrical, drainage
etc. we provide total solutions from designing to commissioning. Our service extends to supply and installation of kitchen equipment, exhaust and fresh air systems, gas lines etc.
We have an in-house qualified, experienced technical team and installation is carried out according to international standards. On completion of the installation we demonstrate all the equipment and hand over the kitchen to the client
What are the other products apart from kitchen items?
When I started, I did not have an unit to manufacture stainless steel products. Stainless steel products take 50 per cent of the kitchen equipment, such as cupboards, tables, sinks, racks, etc. We were depending on the subcontractors with whom I had some bad experience with delivery times.
Thereafter, I decided to open up my own stainless steel fabrication factory about two years ago. We got a complete fabrication plant today with modern computerized machinery. We are ahead of most of the other suppliers in this industry who don’t have their own unit for customer fabrications.
I also realized that laundry equipment goes parallel with kitchen equipment and started a new collaboration with a well reputed laundry equipment manufacturer in Italy. We recruited an experienced work force to look after laundry operations.
Today we are fully geared with all required equipment for the field of commercial kitchens and laundries.
How important is this sector to Sri Lanka’s economy?
Although our economy has gone through turbulent times, the tourism sector has brought in a steady income to the country. Hotels, restaurants, villas play a major role in the industry by providing food and accommodation for guests. It is important to note that the kitchen is the heart of the hotel. As such, it is very important for us to provide services to the hotel industry which will definitely contribute to the improvement of the economy of the country.
How competitive are you in your business?
Compared to the European stuff, we are very competitive. But there are Chinese suppliers also in Sri Lanka. If you compare with the Chinese products, our prices are not competitive. However, durability of European products are sometimes three to four times more
than the products imported from China. If Chinese products can be used only for one year, some Europe products can be used for more than three to four years. That is the competitiveness. Most of the big companies in the country are associated with us. They are very satisfied with the products and services delivered by us. We also have a separate team for repairs and undertake to service repairs within 24 hours in
Colombo city limits. Outside city limits it takes 48 hours. When the product quality is high, there won’t be many repairs.
What drives you to success?
We have taken eight years to come to this level. We did not have huge ambitions to be highly successful within two to three years. Our prompt service and customer caring is one of the key factors whch drove me to profits. Most of the stake owners are suffering today due to lack of after sales service from their equipment suppliers. We clearly realized the importance of that factor and never allowed our customers
to be unhappy with us. That went a long way and it is the best advertising campaign I have today. There were not much involvements with banks. There are companies that get loans from banks without any forecasts and face numerous issues. We did not do that. With my
experience as a financer, I monitor all financial matters independently, not to have any burdens. We earned from the business and gradually we increased the volume of stocks and generated the profits.
What are the challenges in your line of business?
When we entered this industry, there were giants with even 25 years’ experience and we had to compete with them. I
am happy to say that we are in that level today as the top kitchen equipment suppliers in Sri Lanka. We did not have many challenges since we did not have much burdens like bank borrowings and other issues. We did experience certain ups and downs, like all businesses. In the initial year it was a challenge to hire good employees, since we were new to the business. What I thought was that without experience and renowned products, it would be difficult to get new jobs, which means, there should be a reputed history. With that concept, I thought of quoting at cost for projects and the Sri Lanka Ports Authority venture was quoted at cost with very low margins and we got the opportunity at the SLPA. With that experience we have secured fairly large projects and that’s how the marketing part of the business commenced
What are the crucial factors for success in this business?
The most important is delivery on time, because kitchen comes at the last point. When the hotels fix the time for opening, we have only a limited period to prepare the kitchen and we simply cannot delay it, because the hotel has arranged and fixed everything for the opening. As
such, delivery on time is very important
How do you manage the employment issue?
Hiring employees was not difficult, as I have a different way of dealing with them. We have about 40 employees and most of them are like my friends. I associate them very closely. When it comes to certain issues, I act like the boss, but most of the time, I treat them as friends. Sometimes, they even work till midnight and it’s not for money. Some people don’t even claim overtime
Those who joined me at the inception are still with me. I started with a small staff and gradually increased the number and most of them are still working with us. I’m lucky enough to get the right people because our technical staff is well qualified and I look after them very well.
What is your message for new entrepreneurs?
Firstly, you have to get to know those who work for you. It is very important and without workers you can’t run the business. You must know about them and be with them. That’s the main thing.
Also entrepreneurs should not have a quick schedule. You must have dreams, without which you can’t run the business. However, you must allow a certain period to achieve your success and goals.
My personal view of handling a business is that within a short period, you cannot do everything. Some people had been affected adversely by trying to achieve goals in a short period of time.
What are your plans to grow the business?
We have already purchased a land in Pitakotte and will construct a five-storey building. Today in this business there are no adequate facilities of sitting with a chef or a consultant to design their kitchen in-house. We wanted to provide this service. If a team of chefs and consultants wishes to come to office for any facility and to have discussions with our designer, we should have provision for such situations. It will be like a “chef’s corner” and we will be able to display all our items. All that can take place in that proposed five-story building. That will be described as a ‘Kitchen Hub’. It will be a one-stop destination and the construction will be completed within one year.