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Transcending Business: Insights into DIMO's Purposeful Diversification Strategy

DIMO’s diversification reflects a long-term approach to inclusive growth and holistic impact

Transcending Business: Insights into DIMO's Purposeful Diversification Strategy

DIMO, a cornerstone of Sri Lanka’s automotive industry, has boldly ventured beyond its traditional roots, embracing a diverse array of sectors to fuel the dreams and aspirations of the nation. Today DIMO has ventured into different sectors with its diversification strategy. This strategic shift not only reduces dependency on a single industry but also enhances local value addition and economic resilience. Agriculture, Healthcare, Power, and Education are critical components of any economy fundamental to food security, well-being and growth.

Their diversification strategy has focused on areas that not only offer growth potential but also how the company could enhance local value addition through manufacturing, improve exports, develop human capital and facilitate the well-being of the nation.  These efforts are aimed at bolstering local industries, creating employment opportunities, and reducing the need for imports. The company’s export-oriented ventures in the agriculture and power sectors are instrumental in generating foreign exchange, which helps stabilize the national currency and contribute to economic prosperity.  In the education sector, DIMO has established initiatives to enhance vocational training and higher education fields equipping the local youth with the skills necessary to meet the demands of a changing economy and fostering entrepreneurship, thereby contributing to the development of human capital in Sri Lanka.

Additionally, DIMO has partnered with international experts to introduce advanced technologies in the healthcare sector, aiming to improve the overall quality of life in Sri Lanka by providing better healthcare outcomes, thus contributing to the nation’s broader public health goals.

By diversifying its business portfolio, DIMO has not only expanded its market presence but also played a significant role in supporting the Sri Lankan economy.

Agri Prosperity

One of the most impactful elements of DIMO’s diversification strategy is its emphasis on agriculture, the staple of any economy. DIMO through its agriculture arm DIMO Agribusinesses covers the entire agriculture value chain in Sri Lanka.

The Flava brand, under the aegis of DIMO Agribusinesses, is pivotal to the local agriculture sector with its holistic approach to the production of agri-based foods locally. The Flava brand that caters to the local market consists of processed agri-based foods from fruit chunks, drinks, dehydrated fruits to virgin coconut oil and more.

Employing an extensive out-grower network, Flava ensures full transparency of the entire process from cultivation to packaging, providing essential technical expertise and access to cutting-edge technologies. This endeavour also secures stable incomes for farmers by offering guaranteed prices through established market platforms. By partnering with local farmers to cultivate a diverse range of Sri Lankan tropical fruits, such as mango, pineapple, and jackfruit, Flava champions biodiversity and sustainable agricultural practices. These fruits are meticulously processed into value-added products at DIMO’s state-of-the-art facilities, ensuring premium, sustainable offerings. “Flava by DIMO” acts as an active marketing hub, boosting market exposure for the stakeholders of the agriculture value chain via modern trade channels and online platforms. This comprehensive involvement from production to market seamlessly integrates farmers as agripreneurs into the broader market. These initiatives exemplify the company’s leadership in innovation, environmental stewardship, and the promotion of healthy, sustainable living.

The Miditer brand, another critical facet of DIMO Agribusinesses, specializes in producing a diverse range of organic value-added food products from unique tropical fruits and coconut for the export market. This portfolio includes both wet and dehydrated items such as fruit chunks in juices, dried fruits and vegetables, coconut milk, virgin coconut oil, and dehydrated coconut kernel products. Sourced from fruits like mango, pineapple, papaya, banana, passion fruit, tamarind, soursop, watermelon, wood apple, rambutan, durian, and jackfruit, Miditer emphasizes unique products tailored for customized export orders. DIMO Agribusinesses leverages its expertise with cutting-edge facilities to ensure fair trade, ethical practices, and premium-quality organic products. The brand’s unwavering commitment to sustainability is evidenced by numerous globally recognized organic and social certifications, underscoring its ability to meet the rising demand for organic and sustainable food products.

In the international market, the Miditer brand has solidified a strong presence, particularly due to its emphasis on organic and sustainable products. Since its launch in 2022, Miditer has targeted health-conscious consumers globally with its range of organic coconut products and exotic fruits. Participation in international trade fairs and exhibitions has been instrumental in promoting Miditer’s offerings and securing partnerships with international distributors and retail chains. The brand’s focus on high-quality, sustainable products resonates with a growing global market segment that prioritizes health and environmental considerations. Additionally, Miditer offers white-labelling and bulk purchasing options, appealing to businesses seeking premium organic ingredients.

DIMO Agribusinesses plays a crucial role in sourcing crops for its products from its out-growers, ensuring high-quality raw materials while supporting the livelihoods of local farmers. This network encompasses over 1,000 primary producers cultivating a variety of fruits such as pineapple, papaya, mango and vegetables. The company also sources soya and fodder maize from its out-grower network while some farmers produce seed paddy to supply the seed market. To bring next-generation Agriculture solutions, the company provides farmers with assured prices and reliable market platforms, contributing to their economic stability. The programme engages smallholder farmers through forward contract agreements, continuous knowledge transfer, and access to agricultural inputs. DIMO Agribusinesses also conducts field programmes, demonstrations, and training at its Agri-Techno parks, enhancing farmers’ skills and expertise. As Sri Lanka’s leading supplier of melon seeds and local seed paddy, DIMO plans to expand this network to 10,000 farmers over the next five years. These efforts ensure a consistent supply of raw materials for the company’s food processing operations, fostering positive impacts on local economies and the environment while integrating small and medium agripreneurs into the broader agribusiness ecosystem.

Energizing Growth

DIMO’s strategic focus on the Power and Energy sector stems from the industry’s crucial role in supporting and driving the broader economy. Recognizing that reliable and advanced power infrastructure is fundamental to the productivity and growth of all economic sectors, DIMO has prioritized this area in its diversification efforts with its power and energy arm DIMO Energy.

Representing different spectrums in the power and energy sphere the company further extended its focus into the manufacturing aspect of the sector by producing power panels with a mission to “powering the future”. The partnership with Siemens to manufacture SIEMENS SIVACON S8 and SIEPAN 8PU Low Voltage Power Distribution Boards and Motor Control Centres (MCC) in Sri Lanka exemplifies this commitment. Launched in January 2024, this initiative addresses the need for type-tested (design-verified) panels that ensure greater safety, efficiency, and reliability—essential qualities for power distribution that sustain industrial and commercial operations across the country. By establishing a state-of-the-art manufacturing facility in Weliweriya, DIMO Energy is not only enhancing access to high-quality electrical solutions but also supporting the foundational infrastructure that powers the economy.

The introduction of the DIMO Lumin Power panel brand in 2019 further underscores DIMO’s dedication to the Power and Energy sector. Initially aimed at fulfilling internal project needs, DIMO Lumin panels have since been made available to a wider market, reflecting the company’s understanding of the sector’s impact on economic productivity. The success of these panels paved the way for DIMO Energy to enter into an agreement with Siemens to manufacture advanced type-tested (design-verified) panels locally under license and reinforce the company’s role in advancing the nation’s electrical infrastructure.

DIMO’s efforts to expand into the export market for electrical power panels, alongside their already commenced sales expansion into neighbouring countries, highlight the broader implications of their focus on the Power and Energy sector. By producing Siemens-licensed, design-verified panels that meet international standards, DIMO is not only contributing to the local economy but also positioning itself as a competitive player on the global stage.

Nation’s Well-being

Healthcare, being fundamental to the well-being of a country’s citizens, naturally became a concentrated focus for DIMO. Through its healthcare realm, DIMO Healthcare, the company aimed to achieve positive societal and economic impacts.

DIMO has a longstanding presence in healthcare, supplying critical capital equipment like MRI scanners, CT scanners, CATH Labs, and cancer treatment equipment to both government and private hospitals. Recognizing the potential in the cardiology space, where they already had a strong foothold with operational CATH Labs nationwide, DIMO Healthcare expanded into the implants and devices segment with the acquisition of a company called Ceegeez Associates. This includes products such as stents and pacemakers from globally renowned brands like Boston Scientific and Abbott, which are leaders in their respective specialities. This expansion not only enhances DIMO’s healthcare offerings but also supports the advancement of medical treatments available in Sri Lanka, particularly in cardiology.

The strategic acquisition of Mansel and Associated Laboratories for a foray into the pharmaceutical sector further underscores DIMO’s commitment to healthcare. This move aligns with DIMO Healthcare’s vision of building a healthier nation and enhances its partnerships with global pharmaceutical giants such as Medochemie, Hetero, Hovid, Tabors, and Grifols. By integrating these brands into its portfolio, DIMO has expanded its range from capital equipment, consumables & contrast mediums, and implants to pharmaceuticals. This comprehensive approach not only broadens their market presence but also opens opportunities for local production of selected pharmaceutical products, which DIMO plans to explore in the future taking local value addition to the next level. 

Reshaping the Country’s Human Capital

DIMO has been redefining vocational education in Sri Lanka since entering the sector in 1990 through its educational arm DIMO Academy. The company’s commitment is exemplified by offering the Certificate in Automobile Mechatronics course free of charge, an unprecedented CSR initiative in the country. Over the years, DIMO Academy has been at the forefront of vocational education, staying abreast of developments in Germany. In the past decade, DIMO Academy has transformed perceptions of vocational education in Sri Lanka, offering global career opportunities to its graduates. Many students now opt for DIMO Academy qualifications over traditional university degrees due to the secure employment prospects they provide.

DIMO Academy offers a diverse array of vocational education programmes that significantly impact Sri Lankan youth and entrepreneurship. Among these are the Diploma in Automobile Mechatronics and the Diploma in Plant Engineering, both accredited by the German Chamber of Industry and Commerce. These qualifications lead to global employment opportunities, with diploma holders frequently recruited by international companies even before graduation. Notably, 80% of recent graduates from the Diploma in Automobile Mechatronics programme were hired by German firms, while nearly 90% of the inaugural Diploma in Plant Engineering batch secured positions with German organizations at pre-graduation. This success underscores the high demand for DIMO Academy graduates on a global scale, showcasing DIMO’s significant contribution to enhancing local human capital for international excellence.

Further, DIMO Academy offers courses on Hybrid and EV technology, City & Guilds qualifications, and customized technical training for corporate clients, all developed to high standards to equip students with the necessary skills for an ever-evolving environment. Additionally, the Certificate in Automobile Mechatronics is offered free of charge in Colombo and Jaffna.

The Academy has produced over 650 graduates, many of whom have found employment worldwide or started their businesses in countries such as Australia, New Zealand, and the UAE. DIMO Academy courses not only cover technical skills but also other competencies, including entrepreneurship, finance, accounting, and HR, providing a comprehensive education that equips students for success in various fields.

DIMO Academy’s partnership with FH Aachen University of Applied Sciences further enhances the higher education landscape in Sri Lanka and the Maldives. German universities are renowned for their innovation-driven culture and close ties to industry. However, foreign students often face challenges such as language barriers and high admission standards. The partnership with FH Aachen University addresses these obstacles through the “Freshman Programme,” which facilitates access to the German university system while helping students adapt to living in Germany, thus minimizing culture shock. This programme allows students to study in Germany at a fraction of the cost compared to countries like Australia or the UK, making it an attractive option for higher education. Through these initiatives, DIMO Academy continues to make significant contributions to developing human capital vital to the future prosperity of Sri Lanka while helping Lankan Youth to realize their dreams.

Holistic Approach

DIMO’s diversification strategy reflects a forward-thinking approach, emphasizing sectors essential for economic growth and socio-development. By expanding into agriculture, power, healthcare, and education, DIMO not only reduces reliance on one industry but also strengthens local industries and supports sustainable development, enhancing its market presence, driving economic resilience, and fostering community well-being. Further, the group’s focus on innovation and local value addition underscores its commitment to contributing positively to the economy and society. For the community and country, this means more job opportunities, improved skills, and access to advanced technologies, promoting overall economic and social progress.