Nirmal Madanayake M.D ATLAS on a saga spanning over 50 years of building a dynamic brand…
When your company has a rich history of 50 plus years,maneuvering through good and bad times, some of it rather significant at watershed moments in Sri Lankan history, you have arrived not just as a business, but as one with a heritage deeply tied to the roots of Sri Lanka. With Ceylon Pencil Co, a Sri Lankan company with a rich history and an even richer present, Nirmal Madanayake, its second generation M.D, has nurtured it from troubling times to a powerhouse of world class stationary.
Nirmal’s insights into a business that started out and still remain a unique Sri Lankan business identity are derived from both the company’s history and his own experience at running it as M.D since 1995. It personifies the capacity and the capability of a Sri Lankan company to scale the heights and emerge a stronger, efficiently run powerhouse that has successfully overcome all the odds, even in an age when tough competition exists.
Ceylon Pencil Co was founded by D.S Madanayake, Nirmal’s father, over fifty years ago. The Madanayakes were already into operating a bus service and insurance – MJ Insurance and MJ Buses were successful ventures when they were nationalized back in the late fifties– “There’s still an old board of the company,hanging outside, in front of the Fort Railway Station, “Nirmal recalls.
Following his education at Cambridge University, D.S Madanayake joined the Central Bank but left in 1959 and started the Ceylon Pencil Co with Japanese technical collaboration. Those were tough times but the company grew during the Sixties and pioneered the manufacturing of pencils. In 1970, theyinitiated a joint venture with Atlas Pencils of UK , a rare feat at the time and engaged in exports. “ Sri Lanka is one of the best sources of quality graphite and we exported high quality pencil lead to the UK.” Nirmal remembers – old pictures show him beside his father and others, ready to export a shipment the old fashioned way to the UK.
In 1973, the family migrated to Australia, leaving the company in the hands of a relative. Nirmal’s father returned in 1977. Nirmal himself came to Sri Lanka in 1992 – for a six month stint, as he called it at the time. It was a culture shock for him but he was able to somehow, fit in and was determined to steer the company out of troubled times.
In 1995, he took over as M.D as the company was facing tough times – financial debt was mounting but the young man at the helm persevered. An export order that came at the right time, turned the fortunes around – “I remember sitting down with the staff members to personally pack the order – it was a lifeline for us.” He recalls, “These were the days before India and China were opening up and we were able to actively engage in export of pencils.”
Nirmal found himself steering the company through some of the country’s and the company’s trying times – from a strike that was a result of misinformation to being challenged by the LTTE for tax. “ We can proudly say that we have never bribed our way nor compromised our integrity at any point in our journey. “ he says quietly, “ But that was how this company was built and that’s why we are proud of our journey.”
Under Nirmal’s guidance, the company grew. He appointed young graduates to the management team, ensured they were trained and given the right exposure. Today, they run a vibrant and a successful company that has grown into a powerhouse of stationary and related items. In 2012, A.C Neilsen placed Atlas in the top 7% of brands in a global survey index of 8,551 brands surveyed in 73 countries. “We have always focused on introducing and maintaining the highest quality but with mass market appeal. We do have niche ranges such as the stationary and books manufactured under licensee for global brands such as Ben Ten, Barbie and Disney – our quality is world class and our products meet the highest quality standards, proudly manufactured in Sri Lanka.”
The company has experienced double digit growth and maintains a strong market presence throughout the island.Nirmal sees a future of growth and tremendous possibilities –“Sri Lanka’s GDP growth is estimated to surpass that of China in five years. We are likely to see a bigger focus and a greater investment on the education sector.This would results in a further expansion of the market for stationery products in the medium term”
Commenting on the industry, Nirmal is of the view that during the past few years competition has become more intense across all business categories. However he asserts that ATLAS has been successful in overcoming all these challenges and maintains a commanding market leadership position.
Nirmal remains hands on but is confident of a dynamic team headed by Muhammed Hamza, CEO taking the company to a new level of growth and expansion. “It is an exciting time for us all – as the economy takes off and the country poised for a new phase, Ceylon Pencil Co is confident of the possibilities the future brings.
