Retail
Subscription
to Advertise
  • ISSUES
    • 2006 to 2009
      • 2006
        • January 2006
        • February 2006
        • March 2006
        • April 2006
        • May 2006
        • June 2006
        • July 2006
        • August 2006
        • September 2006
        • October 2006
        • November 2006
        • December 2006
      • 2007
        • January 2007
        • February 2007
        • March 2007
        • April 2007
        • May 2007
        • June 2007
        • July 2007
        • August 2007
        • September 2007
        • October 2007
        • November 2007
        • December 2007
      • 2008
        • January 2008
        • February 2008
        • March 2008
        • April 2008
        • May 2008
        • June 2008
        • July 2008
        • August 2008
        • September 2008
        • October 2008
        • November 2008
        • December 2008
      • 2009
        • January 2009
        • February 2009
        • March 2009
        • April 2009
        • May 2009
        • June 2009
        • July 2009
        • August 2009
        • September 2009
        • October 2009
        • November 2009
        • December 2009
    • 2010 to 2019
      • 2010
        • January 2010
        • February 2010
        • March 2010
        • April 2010
        • May 2010
        • June 2010
        • July 2010
        • August 2010
        • September 2010
        • October 2010
        • November 2010
        • December 2010
      • 2011
        • January 2011
        • February 2011
        • March 2011
        • April 2011
        • May 2011
        • June 2011
        • July 2011
        • August 2011
        • September 2011
        • October 2011
        • November 2011
        • December 2011
      • 2012
        • April 2013
        • June 2012
        • July 2012
        • September 2012
      • 2013
        • January 2013
        • February 2013
        • March 2013
        • April 2013
        • May 2013
        • June 2013
        • July 2013
        • August 2013
        • November 2013
        • December 2013
      • 2014
        • January 2014
        • February 2014
        • March 2014
        • April 2014
        • May 2014
        • June 2014
        • July 2014
        • August 2014
        • September 2014
        • October 2014
        • November 2014
        • December 2014
      • 2015
        • January 2015
        • February 2015
        • March 2015
        • April 2015
        • May 2015
        • June 2015
        • July 2015
        • August 2015
        • September 2015
        • October 2015
        • November 2015
        • December 2015
      • 2016
        • January 2016
        • February 2016
        • March 2016
        • April 2016
        • May 2016
        • June 2016
        • July 2016
        • August 2016
        • October 2016
        • November 2016
        • December 2016
      • 2017
        • January 2017
        • February 2017
        • March 2017
        • April 2017
        • May 2017
        • June 2017
        • July 2017
        • August 2017
        • September 2017
        • October 2017
        • November 2017
        • December 2017
      • 2018
        • January 2018
        • February 2018
        • March 2018
        • April 2018
        • May 2018
        • June 2018
        • July 2018
        • August 2018
        • September 2018
        • October 2018
        • November 2018
        • December 2018
      • 2019
        • January 2019
        • February 2019
        • March 2019
        • April 2019
        • May 2019
        • June 2019
        • July 2019
        • August 2019
        • September 2019
        • October 2019
        • November 2019
        • December 2019
    • 2020 to 2023
      • 2020
        • January 2020
        • February 2020
        • March 2020
        • April 2020
        • May 2020
        • June 2020
        • July 2020
        • August 2020
        • September 2020
        • October 2020
        • November 2020
        • December 2020
      • 2021
        • January 2021
        • February 2021
        • March 2021
        • April 2021
        • May 2021
        • June 2021
        • July 2021
        • August 2021
        • September 2021
        • October 2021
        • November 2021
        • December 2021
      • 2022
        • January 2022
        • June 2022
        • February 2022
        • July 2022
        • March 2022
        • April 2022
        • August 2022
        • May 2022
        • September 2022
        • October 2022
        • November 2022
        • December 2022
      • 2023
        • January 2023
        • February 2023
        • March 2023
        • April 2023
        • May 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40 2021 – 2022
  • ABOUT US
No Result
View All Result
Business Today
No Result
View All Result

CRUNCHING ON OPPORTUNITIES

0 0
0

From humble beginnings, Rancrisp, a brand dedicated towards quality and the sustainability of the industry, is on a journey of becoming a formidable Sri Lankan export brand. Leveraging on product innovation and diversification in agricultural exports, Rancrisp is creating new opportunities for Sri Lanka. Samantha Thamel, Managing Director, Rancrisp is committed to ensuring their success serves to benefit the farmers as well. He believes the Government must join hands with the private sector in supporting these initiatives to ensure the sustainability of Sri Lanka’s agricultural exports. Following in his father’s footsteps, Samantha Thamel is also dedicated to raising the profile of native Sri Lankan produce in the international market.

By Udeshi Amarasinghe and Keshini de Silva. 

Photography Mahesh Bandara and Menaka Aravinda.


Could you tell us about the beginning and journey of Rancrisp?

The journey began on April 6, 1981, when my father Eden Thamel founded the company. I was eight years old at the time, and I can still remember the factory adjoining our home in Ja-Ela. There was a shop called Tony Cool Spot in Ja-Ela, and this was his first customer. My father was a Government Surveyor, and at that time a circular had been issued stating that officials who had completed 20 years of service could leave their positions and retain their pension. My father, who had completed 20 years of service at the time, decided to leave his post and venture into the cashew industry at a small business scale.

In fact, my father was encouraged to enter this industry by his friend Wijewansa, who was engaged in the same industry but at a different level. Previously, my father had ventured into poultry farming. I remember the chicken sheds were at a superior level, considering that time. Workers did not have to enter the coops to feed and provide water or to collect the eggs as everything could be done from outside the coop. Later, my father stopped poultry farming and established Rancrisp.

From the beginning, the factory had always maintained the required standards and quality, and in most instances, operations were way ahead of its time. I took over the reins of the company 13 years ago. Since, we have diversified with products such as chips made from Sri Lankan grown cassava, potato, and taro (kiri-ala). We have diversified our range of snacks through value addition to Sri Lankan roots and yams

The name Rancrisp has remained constant throughout the journey. Ran is the Sinhalese word for gold, and crisp stands for the crispiness (quality) of the product.

Why did your father specifically decide to get into cashew?

In the 1980s Indian and Singaporean companies imported cashews from Thailand and supplied supermarkets such as Cornells, Colombo Apothecaries and Cargills Grocery Fort in Sri Lanka. I believe my father saw an opportunity and decided to enter into this industry

How do you source cashew for Rancrisp?

We have our own plantations; however, they do not produce enough crop to meet our requirements. Therefore, we also lease large extents of cashew estates. We have external suppliers as well. However, our primary source is leased cashew farms. Our cashews originate from Puttalam, Mannar, Dambulla, Ampara, and Batticaloa: virtually all the areas that grow cashew in Sri Lanka.

We Supply Dehydrated And Processed Fruits To All Leading Sri Lankan Ice Cream And Yogurt Manufacturers. Previously, These Companies Used To Import These Products. We Gather Fruit From Farmers And Process The Fruits According To Their Requirements.

Where do you market your products?

While catering to the Sri Lankan market we export as well. In fact, 50 percent of our products are exported to countries such as the UK, USA, Japan, Malaysia, Canada, Singapore, Angola, the Fiji Islands, and the Maldives. We have a range of over 70 products in various flavors and sizes, and the entire range is made available for export. All our products carry the Rancrisp brand. At one point we designed private labeling for exports to certain countries. However, we have since stopped this, and now all our exports carry the Rancrisp name. 

Could you tell us about your diversification journey?

The cashew crop can only be harvested once a year, and this stock needs to be maintained all year long. It is difficult to do so and requires significant investment. Considering this and the opportunities with Sri Lankan yams and fruits, we diversified into producing cassava chips, potato chips, dried fruits, and processed fruits. We opened a factory in Dambulla where fruits collected from farmers are being processed.

Today, we supply dehydrated and processed fruits to all leading Sri Lankan ice cream and yogurt manufacturers. Previously, these companies used to import these products. We gather fruit from farmers and process the fruits according to their requirements. We also supply our fruit products to international food chains and five-star hotels in Colombo. We use minimal processing in our products. Therefore, there is a significant difference in the taste, which is fresher.

For example, we supply 50 tons of fruits per season to a particular ice cream manufacturer. Our processed mango pulp is used in their third fastest moving item. Previously, it was strawberry. These ice creams are exported to Male and Dubai as well. We also supply strawberries; however, this is not a popular flavor in Sri Lanka. Recently, we received an order for 40 packages of Anoda by a hotel to cater to a visiting world leader. Another leading Sri Lankan hotel purchases our wood apple products to provide to cricket teams. We are happy that our products are reaching such a clientele.

What has been the response from the market thus far?

We have experienced high levels of customer satisfaction. Consumers love our products and continue to purchase them. For example, when we started cassava chip production, we only purchased up to 300 kilograms per day from farmers while today we have purchases amounting to 5,000 kilograms a day from the farmers. The demand has similarly risen for potato and dried fruit products. Moreover, during the mango season, we produced nearly 100,000 kilograms of mango products. In the future, we have planned to introduce a 100 percent environment-friendly glassbottle for our fruit content, especially fruit drinks. We have had a superior customer response rate.

Rancrisp products are featured in distinctive packaging. Could you elaborate on this?

The packaging is essential for processed food for many reasons. Cashew is an expensive product in the market, and cheap packaging would undermine the image of the brand and extent of distribution. In addition to being attractive, our packaging also maintains high levels of hygiene. Our packaging facilities have been designed to suit our requirements, and we have also imported packaging resources from overseas. When we are unable to obtain improved packaging in Sri Lanka, we import.

Could you tell us about your work to empower farmers?

We are the only company that pays the highest certified rate to farmers. This includes potato farmers in Nuwara Eliya as well as cassava farmers in Gampaha. We have agreements with distinctive farming clusters, where they cultivate to target our production. This is because we have already certified a price for them. Furthermore, we also supply planting materials such as potato seeds from the Netherlands to farmers and then buy back the crop. We follow similar procedures with cassava and taro (kiri-ala). 

What more can be done in this industry?

Is the Government interested in developing this sector? Recently, the Ministry of Primary Industries under the direction of Minister Daya Gamage, engaged in a positive initiative to collect information on companies that offer value addition on agricultural products for a grant provided by the World Bank. We were awarded 35 million rupees, and we invested an additional 35 million rupees in importing a fully automated international level production line to improve our production further. However, there needs to be more Government focus in terms of increasing mango and cashew cultivation

When We Started Cassava Chip Production, We Only Purchased Up To 300 Kilograms Per Day From Farmers While Today We Have Purchases Amounting To 5,000 Kilograms A Day From The Farmers. The Demand Has Similarly Risen For Potato And Dried Fruit Products.

For example, a 20-foot container of cashew is worth 15 million Sri Lankan rupees. Other export crops such as tea, coconut and rubber cannot attract a similar income from one container. Cashew is a luxury product, and this means we can attract more foreign currency to the country. Therefore, while we improve production facilities, the only thing that remains to be done is to strengthen cashew cultivation. Farmers must be encouraged to grow cashew and to do so, we need to certify prices. One such way that we can help farmers is by providing them quality plants. 

Initiatives in the cashew industry have been driven by the private sector. Could you elaborate on this?

Recently, we started a CSR project to distribute jak, mango, cashew, and mee plants free of charge. We distribute the plants to growers and monitor the plants until we receive a crop. They need to keep us updated by providing monthly and quarterly updates with photographs using our website and social media. After a year, we will reward the best growers.

We have invested significantly in improving planting products for farmers. These plants have been selected from good quality parent plants. With better crops, we can improve our products, and this will, in turn, further enhance the production capacity of the entire country. We have a plant nursery in Dambulla, we always follow proper agricultural procedures. We launched these projects on June 26th this year, to mark the 80th birthday of my late father. The Chief of the Wannialaetto was the Chief Guest. 

What are your thoughts on exports meeting international quality standards?

Maintaining quality and international standards are extremely important, especially as packaging and quality of products in the global market continue to improve. If we fail to do so, we will not be able to keep up. Sri Lanka has many agricultural products such as cashew, potato and cassava, which have a unique taste and quality. There is great potential.

Cashew is our main product, and we gather the crop during the season, sun-dry it and store in optimal conditions. Subsequently, we release the stocks, cut out the nuts, and ensure the product is always fresh. With yams such as cassava, the crop is collected from the farmers and processed within 12 hours. Although it is difficult, we have worked with our suppliers to ensure we always use fresh ingredients.

Rancrisp is the only company that produces cassava chips certified under ISO 22000 by the SLSI.

When exporting to other countries, we need to conform to their requirements. We have to ensure our products meet the unique requirements of the Japanese market. Recently, we started shipping our new product, taro chips, to Japan, and received permission without any issues because we conform to their standards.

Sri Lankan agricultural products face the challenge of lower crop numbers and competition from cheaper products. How can the Government help these industries weather these obstacles?

While other countries produce cashew and cassava at lower prices, Sri Lankan cashew and cassava have a distinctive taste and quality. For example, Vietnam provides taro products, but the taste and appearance are different.

We have been unable to obtain certain large tenders due to the limitation in agricultural crop quantities in Sri Lanka. We no longer grow trees such as mango and cashew because it takes time, and people prefer to earn an income easily and quickly. It is imperative that we start to increase our cultivation. There is plenty of lands that can be allocated for cashew, and the Government must implement appropriate plans in this regard. With a greater harvest, we have the potential to obtain a more significant market share in the world market.

Although increasing our crop numbers will result in a slight reduction in prices, Sri Lankan products will receive a higher rate due to its quality and taste. If we can maintain our prices at two dollars higher than our competitors, we can increase our market share. The world buys Sri Lankan products because they are better. However, at present, our prices are four dollars higher, which is a challenge.

We Aim To Popularize The Rancrisp Name And Bring Global Recognition To Our Brand And Also To Sri Lanka… Rancrisp Will Continue To Work Diligently And With Determination To Achieve Our Goals.

How do you think your father would feel if he saw the present growth of the company?

When he handed over operations to me 13 years ago, my father gave me complete control. He did not attempt to interfere with anything. He was a nice and wise gentleman. When I first asked to join the business, my father advised me to first study, and I pursued my education in the marketing field. When I approached him subsequently, he advised me to work elsewhere to gain experience. It was at this point that my father handed over the reins to me and gave me 100 percent control. Today, I value the experiences I gained before joining Rancrisp as I understand my staff and I am aware of working with respect towards my entire team.

Rancrisp has a considerable number of employees. How do you manage them all?

When I started running the Rancrisp operation 13 years ago, we had 11 staff and one manager. Today, we have grown to a 300 strong workforce with 1,000 to 1,500 indirect workers such as farmers and their families who depend on Rancrisp. We have sustained our operations because the consumers love our products, and we appreciate their trust. We have faced challenges in our journey, especially in terms of diversification and investment initiatives. With the incidents in April, we have faced many challenges, but we have since overcome these issues. We have to face these situations. We also make it a point to recruit those who are academically and practically qualified to the roles. The five departments: marketing, accounting, production, sales and human resources, operate independently. Although I give leadership to all these divisions, I do not interfere in daily operations. My main focus is with regards to marketing and product development because I hail from a marketing background.

What are your future plans?

We aim to popularize the Rancrisp name and bring global recognition to our brand and also to Sri Lanka. We currently earn nearly one million US dollars per year and have planned to increase this to 1.5 million US dollars in the next two years. To meet this projection, Rancrisp will continue to work diligently and with determination to achieve our goals.

TweetShareShare

Business Today May 2023

Business Today

  • Privacy Policy
  • Terms & Conditions

© 2023 BT Options. All Rights Reserved

No Result
View All Result
  • ISSUES
    • 2006 to 2009
      • 2006
      • 2007
      • 2008
      • 2009
    • 2010 to 2019
      • 2010
      • 2011
      • 2012
      • 2013
      • 2014
      • 2015
      • 2016
      • 2017
      • 2018
      • 2019
    • 2020 to 2023
      • 2020
      • 2021
      • 2022
      • 2023
  • FOR DIGITAL SUBSCRIPTION
  • BT AWARDS
    • BT Top 40 2021 – 2022
  • ABOUT US

© 2023 BT Options. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In