By Uwin Lugoda
A leading supplier of building material and equipment in Sri Lanka, Building Materials Corporation Ltd. (BMC), has documented a record income of Rs. 425 million during July this year alone. This has made the corporation confident in achieving its target of earning a profit of Rs. 1 billion monthly before the end of this year.
According to the Urban Development Authority (UDA), this income was based on the advice and planning of Prime Minister Mahinda Rajapaksa and State Minister of Rural Housing and Construction and Building Material Industries Promotion Indika Anuruddha.
Speaking to The Sunday Morning, Anuruddha stated that the state-owned enterprise, which was running at a loss earlier, experienced a spike in income thanks to its new management. He explained that the BMC, which was earning Rs. 1.5 million a month during the previous government, increased that revenue to Rs. 155 million by June this year.
“At a time when state-owned organisations are running at a loss, the BMC’s new administrative authority should see these profits as a good sign for the local economy. They even managed to almost triple June’s income of Rs. 155 million to Rs. 425 million by July.”
Govt. project to the rescue
Speaking on this accomplishment, BMC General Manager Dilum Ratnayake stated that the first step in making a profit of Rs. 425 million came when the corporation supplied tiles and cement for Prime Minister Rajapaksa’s assistance programme “A house for you – a country for tomorrow”. He explained that this greatly increased the sales of the corporation, at a time when they were in severe debt.
Their biggest debt of Rs. 204 million was owed to INSEE Cement, and it was the result of a loan obtained during the previous regime.
Ratnayake stated that the corporation was running on money given by the Treasury, with even the employees’ wages being paid through it. However, with the “A house for you – a country for tomorrow” programme, he stated that they received Rs. 70 million, from which Rs. 50 million went into settling INSEE`s loan, while the remaining Rs. 20 million was equally divided between purchasing roofing tiles and iron.
“This is how our journey to a profit of Rs. 425 million began. Following this, we got the cabinet approval to purchase goods from a single source, with the aid of State Minister Anuruddha and the Prime Minister. This resulted in us supplying the state institutions with goods under a single source and carrying out work from the money earned from September in 2020.”
He explained that the Prime Minister also obtained cabinet permission for all government institutions and corporations to purchase goods from the BMC. As of now, around 45 state institutions have connected with the corporation for their projects, and discussions are underway with the Army, Navy, and Air Force as well.
Ratnayake also attributed the corporation`s massive profit to its ability to fulfil customers’ needs without competing with other institutions and being able to restock within 48 hours.
“We give personal attention to every customer and supply quality goods at a lesser price than our competitors. We`ve also incorporated new marketing strategies, those that range from a village level to a greater traditional market.”
Several projects being implemented
In 2020, the BMC opened 17 branches across Sri Lanka, including a modernised supermarket centre, under the instructions of Prime Minister Rajapaksa. Three of these stores were recently reopened, after being closed in the recent past.
The corporation is known to house a number of products with recognisable brand names in its showrooms. Equipment required in the field of construction, materials required for the building of houses and internal enhancement, equipment and tools required for home gardens and parks, agriculture, and industrial and engineering services, equipment needed when obtaining electricity from solar power, and raw materials, are being sold through all the branches.
Among the other services provided by the BMC is the manufacturing of block bricks and porcelain bricks. In addition, the corporation is also implementing several projects in 2021, which include the Polonnaruwa Sand Project and the Peraliya Sea Sand Project.
The BMC has expanded and streamlined its processes further, by giving discounted goods to all public servants, acting as the main supplier to government agencies, providing vacation homes to the corporation's customers, recruiting employees required by the corporation, establishing a network of suppliers, and directly purchasing goods and building materials.
Moreover, the BMC has already made plans to provide its customers with a wider range of services and products in the future.
Building Materials Corporation: Transforming into a profit-maker
28 Aug 2021
Building Materials Corporation: Transforming into a profit-maker
28 Aug 2021