From humble tyre-repairing to Richard Pieris'

Shirajiv Sirimane

PLASTIC PRODUCTS: Six people some of whom were family members who started a motor and tyre repair shop way back in the 1930's has grown up to be one of the most talked about companies in South Asia.

Richard Pieris set up a tyre repairing and an estate supply shop in Hyde Park in 1932 was soon awarded the Ford car agency for the reputation they gained in quick time. Later they were also appointed as local agents for Grundig, Nordmende and several other leading brands.

The company that later became known as Arpico, and commenced manufacturing of rubber moulds and several rubber based by products. Rubber and coir based mats were one of their first export oriented products and they also purchased dry rubber and latex from which they produced mattresses.

When the world went to war, rubber became a precious commodity to the Allies, and tyres were reserved for military use. Seeing a business opportunity in the midst of those dark days, Richard Pieris launched a tyre-rebuilding business to meet the demand for these essential products. The company's first manufacturing venture met with abiding success; today, Arpico and Arpidag brands remain leaders in the domestic rebuild tyre market.

Managing Director Arpico Plastics Ltd, Sunil Liyanage said that the introduction of plastics brought about a new lifestyle to Sri Lanka. "In addition we also introduced Arpihyde the leather and plastic based cloth which also opened up several new self employment opportunities. "Entrepreneurs used this material to produce bags, cushions and seat covers and many other similar products," he said.

Liyanage who was with the company for over 25 years said that another product that revolutionised the country was regiform, which was used for make shift flask, cool boxes and was a common item used when travelling. The regiform board too became very popular and its by-products were used for the fishing industry as well.

Arpico also tied up with Bandag to introduce Arpico rebuild tyres to the local market. "The US Company introduced the coal curing technology for rebuild tyres which extended the life of a rebuilt tyre.

Soon after the open economy was introduced the company faced more completion and still their products were in demand. "One reason for this is our dedicated staff and also the superior distribution network," he said.

He said frequently the company celebrates workers' who completes 25-year service with a bonus and other incentives while some workers' second generation too is working in the company.

In the year 2000, a new corporate thinking was introduced and several differed product lines which were under the same company were allowed to form their own divisions.

This proved to be a very productive move as the divisions had more freedom and new factories were set up in several areas.

Richard Pieris Natural Forms in Biyagama with Italian collaboration was one such company, which is now exporting latex mattresses globally. Richard Pieris Exports at Ekala and the Plastics division at Mattegoda were formed as a result of this move.

The introduction of Polyurethane (Yellow sponge cushions) was also another product, which helped entrepreneurs to start their own business. Their factory mainly producing these items is one of the largest in South Asia. The plastic water tanks 'Plastishell' produced here since 1991 is also a breakthrough product and is a hailed by the construction industry.

This has a triple layer to reduce the heat and now comes in several sizes from 250 liters to 10,000. The garbage control composit bin that converts garbage into compost manure too is another Sri Lankan made product.

Today their rubber, plastic and plantation sector needs are bringing in their highest revenue. The company has also diversified to the real estate, financial services, travel, transport, logistics, and also entering the newspaper field employing nearly 30,000. The company has also won many ISO and SLS certifications and haul of other awards.

Today their portfolio counts 45 subsidiaries, 5 public quoted companies and one associate company, Asian Alliance. Their motor division was sold out 15 years ago.

The company also owns and operates Arpico USA, Europe, Asia Pacific and are looking at setting up factories in India and the sub continent. "We are also looking at setting up rubber based manufacturing plants in Europe," he said.

Under their CSR programme they built a village affected by the recent Ratnapura floods and has donated valuable equipment during the tsunami and are involved in many other educational promotion events.