Global Vinyl produces a range of vinyl flooring, sheeting, and synthetic leather, covering a broad range of industries. Today, the second generation of the business comprising experienced professionals is focused on product improvements that ensure an even larger share of the market and is on a quest to achieve corporate excellence, says Ganendran Kumaraswamy, a Director at Global Vinyl.
Can you tell us about Global Vinyl, its founding and journey thus far?
Global Vinyl is a family business primarily dealing in vinyl flooring. The company was founded by my father in the early 80s as Lanka Vinyl, and in the early 2000s, as there was a need to increase capacity, Global Vinyl was established. Subsequently, the second generation took over the business.
In the 80s and 90s, we were predominantly into making synthetic leather and exporting to Bangladesh, Mauritius and Pakistan. Over time with increasing costs and with free trade agreements, it became difficult to compete on price as the cost of manufacturing in Sri Lanka was relatively high compared to the region.
We then ventured into vinyl flooring, for which we’re the No. 1 supplier locally with over 80% market share. In the last five years, we’ve looked to reinvent ourselves and move into higher end products that are also direct to consumers. That’s where the luxury vinyl tile (LVT) comes in. We are now also exploring export opportunities, especially in the Middle East and African markets.
As a family run business we’ve been willing to take calculated risks through the years. We started with a factory in Ekala, Ja Ela, and now have a second plant in Pannala. We have invested for growth and now we do have the spare capacity to grow further. In addition, we have invested in people so that the business can run with a professional team. Today, we have an experienced management team in place. We are also ISO certified.
How has Covid-19 impacted the business?
With imports being restricted, it has offered a chance for local manufacturers including our business to record improved market share with better sales. But since we trade with the hardware sector, we also witnessed the hardships it faced due to Covid. We had to deal with a variety of collection challenges. On the corporate side and other services, conditions have been relatively more stable.
In the current climate, the government is emphasizing local manufacturing, exporting and attracting foreign revenue. So if you can manufacture a quality product at a reasonable price, the future should be positive for local manufacturers.
As a member of the family business, what is your vision for the company?
We introduced the luxury vinyl tile in the last five years that is as good as or even better than ceramic tiles. But in Sri Lanka, there is an awareness problem. In general, those constructing buildings are looking for ceramic tiles. My vision is to change that mindset for vinyl to be a preferred alternative. We also have plans to diversify the business into other areas.
Where do you see the company when Sri Lanka reaches its 100th year of independence?
When Sri Lanka reaches 100 years since independence, I would like to think that we’ll be in the leagues of the next generation conglomerate with a wide variety of businesses and diversified revenue base.
What does it mean to you, being a part of the SL@100 initiative?
Sri Lanka @100 is an exciting prospect. Many family businesses don’t get professional help, and much stems from gut decisions or private discussions. The SL@100 initiative offers an outside perspective on the business to see what works and what doesn’t. We’re looking forward to collaborating and seeing how we can take the business to the next level.
How do you strike a balance between being involved in the strategic direction of the company and staying hands-on with the operational side?
In a family business, this is even tougher because you don’t always know where the work stops. We dedicate specific days for ideation and spend time looking at new ideas. In addition, we have a management meeting every week with a section dedicated to looking at strategy. You must also have the right people in place, without which you’re going to be firefighting all the time. We spend time evaluating and making sure we get the right people onboard, so there’s more time to attend to other matters.
What was the one leadership lesson you learned the hard way?
People are the most important assets of the business. We have to ensure there is good training and motivation throughout. It is also important that during failures, we all collectively learn as a team and don’t fall into a blame culture. You can do wonders when you have the right team who is well motivated and believes in the company vision.
How do you ensure the company has a competitive edge and is able to sustain it?
In Sri Lanka, many consumers are price sensitive so education plays a big part. We educate our resellers, customers, the architects and interior designers on the product structure and benefits. Additionally, we are probably the only local flooring manufacturer to provide a warranty. We also educate the end user to make sure they understand the different qualities and benefits of the product. Creating awareness is one of our major goals for the next couple of years.
Our flooring products are also completely recyclable. We have recycling facilities that ensure no waste goes to landfill. We even collect plastic waste from outside and recycle to help the environment and keep our product more sustainable.
I would like to think that we’ll be in the leagues of the next generation conglomerate with a wide variety of businesses and diversified revenue base