Though there are several Sri Lankan brands which have made it to the global arena, only a few companies have been able to thrive with their operations overseas. LAUGFS is one such Sri Lankan brand which had stamped their footprint successfully in a number of countries. With an annual turnover of over Rs. 28 billion and a workforce of 4,000, the company has diversified aggressively with businesses currently in Sri Lanka, Bangladesh and UAE.
“In a mere two decades we have been able to firmly imprint the LAUGFS name not only in Sri Lanka, but also across the region, touching the everyday lives of millions,” remarked LAUGFS’s Group Managing Director, Thilak De Silva. He recalled how the company started its journey in 1995 with the revolutionary auto gas conversion business - Gas Auto Lanka. LAUGFS has since expanded rapidly into over 20 industries covering power and energy, industrial, services, consumer retail, leisure, logistics and property sectors.
LAUGFS has been strengthening its presence in the power and energy sector within the region with a number of ventures. The LAUGFS LPG Import & Export Terminal, which is currently under construction, is one such project, which it believes will help positon Sri Lanka as an energy hub, by taking advantage of its strategic geographic location in the Indian Ocean. In 2015, LAUGFS entered Bangladesh, becoming one of the largest LPG downstream players in the country. Last year, the company also set up its energy trading arm with SLOGAL Energy DMCC, which is based in Dubai.
“Commissioning Sri Lanka’s largest solar power project, setting up our maritime logistics arm and expanding our LPG vessel fleet, as well as expanding our LPG operations to Bangladesh and becoming the first Sri Lankan energy brand to become a multinational are some of our great achievements,” Thilak De Silva commented. “As a Sri Lankan conglomerate, we are proud of what we have achieved within a very short span of time.”
In addition, LAUGFS has also now ventured into Health Care & Wellness Sector. LAUGFS Pharmaceutical is setting up Sri Lanka’s largest pharmaceutical manufacturing facility, with a massive investment in excess of USD 30 million. “Our LAUGFS Wellness is a distributor of international Wellness products and also operates our own Pharmacy chain. We also have plans to go into the online Pharmacy platform in the near future,” he remarked.
These efforts also won both local and global accolades for LAUGFS, with Chairman W. K. H. Wegapitiya and the Group Managing Director Thilak De Silva being presented with a haul of awards. “We have a philosophy to not compromise anything less than perfection in whatever we do. Our continuous focus is on delivering value to our stakeholders,” Thilak De Silva said.
Q: How did you get involved with LAUGFS?
A: After I came back from England having completed my studies, I joined our family business and was involved in that for several years. Then in 1995, I got the opportunity to be part of a pioneering venture in auto gas conversion, which became the inception of LAUGFS. What started that day with just a few people, has today become a diversified conglomerate with over 20 businesses in Sri Lanka and overseas, employing over 4,000.
Q: Given the current market and economic conditions, where do you see the country within the next 10 years?
A: Sri Lanka is on its way to becoming a middle income country. World power is shifting to countries like India and China and we are geographically very well centred to cater to the market demands of these economies and the country needs to rapidly gear up for this.
I see Sri Lanka becoming a service hub in South Asia, and as a Sri Lankan conglomerate, we have also identified these strategic opportunities and have made investments for future growth. Our LPG Import & Export Terminal in Hambantota is one such example.
Q: As a company with local roots and expanding beyond borders, what is your vision for the country and its people?
A: We believe that Sri Lanka has the resources to compete effectively on a global platform. Sri Lanka has a vibrant and diverse culture and strong values and ideals. We have a workforce with tremendous potential, and as a company with a strong Sri Lankan identity, we believe that we can stand shoulder-to-shoulder with international companies on a global platform.
We have shown this when we first started LAUGFS Gas competing with a multinational in 2001. Our LAUGFS Lubricants became the first to launch a Sri Lankan lubricant brand, again competing with international brands in the market
Q: The group recently expanded its operations to Bangladesh and what is the potential you see and the vision behind diversifying beyond Sri Lanka?
A: We are always looking to identify emerging market trends and to leverage on our expertise.
Bangladesh is one of the fastest growing LPG markets in the region. With depleting natural gas reserves, the government is currently promoting alternative energy sources, especially LPG. With over 160million population, it is also one of the most populated countries in the world. We see tremendous potential for growth in Bangladesh.
Going into Bangladesh has helped us take the first step in becoming a serious regional energy player. We are the only player in the market with own vessel fleet, which in itself provides a strategic advantage.
Q: What are the future investment plans for the Hambantota terminal?
A: The LAUGFS LPG Import & Export Terminal at Hambantota is a world class facility and will be one of the largest terminals in South Asia.
This is a significant project not just for LAUGFS, but for our country, as it will help position Sri Lanka on the global energy map, taking advantage of Hambantota Port’s close proximity to some of the busiest shipping routes and our strategic location amidst some of the largest emerging LPG markets in Asia, such as Bangladesh.
It is constructed with a total investment of USD 80 million, with a total capacity of 45,000 MT, of which Phase 1 will be of 30,000 MT. Construction is well on track and we plan to commission the new Terminal in the 2nd half of 2018.
Q: What are the future plans for the maritime and LPG sectors?
A: We recently acquired our third LPG vessel – Gas Courage, in January this year. Our plan is to expand our vessel fleet to service our expanding businesses in SL, Bangladesh and other countries. This will strengthen our LPG logistics capabilities to cater to regional demands as well as our own LPG operations in Sri Lanka and Bangladesh.
Q: Today start-ups have become the culture across the world and what advice would you give to young entrepreneurs?
A: Entrepreneurs face many challenges, especially at the early stages, and persistence and courage become very important. It’s important to look after your team as you go along, since it’s them who will help you drive your vision and make things a reality.
Once you become successful, it’s very important to never forget your roots. The people who have been there for you, your family, your upbringing, your school, have also had a tremendous impact on you to become who you are today. So, it’s important to remember that and give back in whatever way you can.
Q: What are your views on the importance of sustainability and company initiatives?
A: I believe that sustainability of our businesses also depends on our team. I believe that having a great team with a strong trust-based relationship is vital for any business to succeed. We have a very strong family culture, with a great team spirit at LAUGFS. Our teams have worked tirelessly over the past two decades with a single vision to make LAUGFS what it is today.
Also, as a conglomerate with Sri Lankan roots, we believe that we have a responsibility towards helping and supporting our communities and our nation. We have been able to make a significant positive impacts on our local communities and our country’s economy as a whole – from infrastructure development to supporting industry growth, to employment creation to skill and knowledge enhancement and more.
We have a similar approach to our environment, where environment sustainability and responsible practices have been an important part of our business strategy from day one. In 1995 we offered auto gas conversion as a cleaner alternative for motorists. Today, our businesses include LAUGFS Gas, which offers LPG as a cleaner alternative to traditional fuel, Eco Sri, which is a pioneer in air quality management, as well as LAUGFS Power, which engages in renewable energy generation including hydro and solar. In addition, there are various projects we are currently working on to minimize our impact on the environment. For instance, LAUGFS Solutions is currently working on electric–powered trishaws, with 4 trishaws already converted as part of the pilot project.
Q: what are your personal ambitions?
A: I believe that remembering our roots are very important, no matter how successful we are. I grew up in Ahangama and I constantly focus on giving back to the community I grew up in and have been spending a lot of time in projects to uplift the local communities there.
I’m currently planning on setting up a total community centre there, which would include a theatre, library, playground, and a Montessori.
My pet project at the moment is a Tuck Shop I’m setting up at Mahinda College, dedicated to Dani Aiya, who helped me when I was a young student at the college. He used to give me a free cup of tea when I didn’t have any pocket money, and I have always been grateful to him for that. Helping to develop my former schools (Ananda College, Mahinda College and St. Aloysius College) have been a key focus for me.
Thilak De Silva is a prominent industry leader, a noted philanthropist and the Group Managing Director of LAUGFS Holdings.
One of the founding partners of LAUGFS, De Silva has been instrumental in the phenomenal growth of the company over the years. His untiring efforts, unparalleled business and industry knowledge, and remarkable charisma have made an indelible imprint in the story of the Group’s growth.
Having completed his undergraduate studies in Engineering Technology and Business Management in London, UK, De Silva returned to Sri Lanka to assume responsibilities as an Executive Director in his family businesses, which rapidly expanded under his leadership.
In 1995 however, he became part of the pioneering project that transformed the automobile industry by converting vehicles from the traditional petroleum fuels into liquefied petroleum gas, which became the inception of LAUGFS. This proved a phenomenal success and became the turning point that laid the foundation to create one of the largest business conglomerates in the country today, employing more than 4,000 staff across over 20 industries.
The warm, nurturing nature of De Silva has enabled him to inspire and drive his teams into achieving many great feats, which has been pivotal to LAUGFS’s success over two decades. He is well respected for his strategic foresight, collaborative and engaging leadership style, and entrepreneurial skills that have helped withstand many challenges and build LAUGFS into a trusted and respected Sri Lankan conglomerate.
Noted for his philanthropic work, De Silva has been part of many community and national projects as well as numerous charitable causes. His contribution has extended into many areas including community development, livelihood, education as well as healthcare.
Driven by a firm nationalistic pride and a strong desire to contribute towards uplifting communities, he acts as a strong advocate of eliminating rural poverty and empowering communities.
De Silva has been a participant of a number of entrepreneurial and management development programs both local and overseas and was also the recipient of the prestigious Association for Overseas Technical Scholarships (AOTS – Japan) in 2003. He is a regular participant in many LP Gas business forums conducted at various parts of the world and widely connected with industry leaders in the energy sector.
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