JANASHAKTHI GROUP: WHERE RESHAPING FUTURES IS A CONSTANT

INNOVATION AS A GROUP

What do innovation and reinvention mean to the Janashakthi Group and how do you see these playing a role in the group’s expansion strategy?

The Janashakthi ethos is about empowering people. That was our founding purpose 27 years ago and is our guiding principle today. Through the years, we have always reimagined and reinvented customer service across the group. We are innovative in how we approach expansion and deliver aggressive value addition to our customers, shareholders and all stakeholders. We guided our forays into insurance, finance, capital markets and real estate by a desire to do something radically different in the market, in an ethical and transparent manner that will give all our stakeholders including customers and employees real value. We continue to push boundaries within those businesses while constantly exploring market trends and needs. We are also looking at how we can make a meaningful impact in our communities and empower the nation alongside our group’s expansion journey.

Tell us about the culture at Janashakthi Group that enables innovation and helps leaders and teams to drive change for growth?

From the Janashakthi Group’s perspective, creativity is key, and we empower our people to do the right thing while encouraging opinions and innovation. That is how we are able to constantly reimagine and reinvent ourselves. Over the past year, we have been able to start a shared service unit enabling us to expand and drive innovation across the group as a lot more people came together to share ideas and build a collective forward strategy for the group.

What is your outlook for the Janashakthi Group?

The group is progressing rapidly and we are in what I like to call an exponential growth phase. We raised substantial capital this quarter and have another capital raising round in the next quarter. We hope to list Janashakthi Group on the Colombo Stock Exchange with an IPO within the next two years. That is the broad strategy of the parent Janashakthi Group. We are embarking on acquisitions that will bring value to the table and to every business unit that we acquire. We like to see ourselves as a group that is always innovating, striving for excellence in everything we do and creating value with every venture that we align ourselves with.

You see it when you consider the big-ticket businesses of the group: Janashakthi Life, First Capital, Orient Finance and Kelsey Homes which are all listed companies.

Janashakthi Life has seen tremendous growth over the past couple of years, growing market share with a range of innovative products and solutions. We are continuing to invest in technology and training so Janashakthi Life can continue on that trajectory. Growth does not come from investing capital alone. You need to invest in people, the right people, and that we have done and will continue to do.

First Capital is the dominant player in several of the areas we operate in and has continued to provide a seamless customer experience and enhanced accessibility through the introduction of digital services. In the fund management space and unit trusts, we are in the top five. As a licensed Treasury dealer, we are the biggest primary dealer in the treasury bill and bond trading market. In investment banking, we are developing more activity in the capital market area in addition to debt instruments.

At Orient Finance, we engineered a dramatic turnaround during the last financial year ending March 2021, and that momentum continues. We are looking for opportunities in the efforts to consolidate non-bank finance companies that would propel Orient Finance to the top 10 finance companies in the country.

We hope to list Janashakthi Group on the Colombo Stock Exchange with an IPO within the next two years. That is the broad strategy of the ” parent Janashakthi Group

The most exciting prospect for us is the property segment, the purview of Kelsey Homes. Here we saw impressive growth in the last 24 months. Our 15-acre gated community project – Central Park, Ja-Ela is already changing the market. The global trend is towards townships and that growth will materialize for us in the future. So, I am excited about Kelsey Homes’ expansion in the property space. We are the pioneers of gated communities with over 35 years of excellence and we are trying to invest further into the company to build that up to its true potential.

LIFE INSURANCE: ASSURING FUTURES

What is Janashakthi Life’s approach to innovation and reimagining the company for growth by influencing change in the life insurance industry?

True to our corporate purpose of uplifting lives and empowering dreams, Janashakthi Life has always aimed to create greater value for all stakeholders. On the customer front, we bring this to life with pathbreaking insurance solutions and services that cater to their evolving needs at every stage of their lives. Extending our purpose to employees, Janashakthi Life has always sought to offer team members an enabling and empowering working environment that helps them to grow and realise their dreams and aspirations.

Our commitment to stakeholders has won their love, trust, and respect over the 27 years we have served the nation. This goodwill reflects in our performance. Also, Janashakthi Life recently recorded 65 MDRT (Million Dollar Round Table) qualifiers as of October this year, surpassing global standards. This is the premier global recognition bestowed upon insurance advisors in the world and we are looking forward to crossing the 100 milestone for this global recognition in the upcoming months. This significant milestone demonstrates the sales teams’ strong professional reputation, high work ethic and deep commitment to excellence.

Janashakthi Life has launched several innovative insurance solutions like Janashakthi Life Unlimited which provides lifelong hospitalization, and Janashakthi Covid Guard, the world’s first in providing financial protection from Covid-19. The solutions are coupled with digitally enabled processes to create a virtual office for the sales team to operate efficiently. We offer a range of life insurance solutions and services that cater to each stage of a person’s life cycle from childhood to retirement and provide for educational needs, savings and investments, healthcare, and mortgage protection.

Can you tell us how you create a culture of empowerment for leaders and teams to excel?

We inspire individuals to excel and succeed as a team to create winning memories that last a lifetime. All our relationships centre around the core values of the organization, fostering a culture that values freedom and empowerment to do the right thing. As part of the Janashakthi Group, we share a strong culture that enables meritbased decisions, embraces diversity, and fosters hard work and collaboration across the group.

Tell us how you plan to revolutionize the industry?

We are harnessing the power of digital technology to serve customers and communities better by introducing innovative processes, products, and services. As a group, we are mapping out the strategy that will revolutionize how we do business in the future. We are building innovative financial solutions, with innovation-led product development along with digitalization, all centred around ever-evolving customer needs and expectations.

BROAD BASING ACCESS TO CAPITAL MARKET SOLUTIONS

First Capital is leading a culture shift offering alternatives to conventional banking and finance, and building itself into a financial services powerhouse. What are the factors driving this strategy, and why is it a gamechanger for Sri Lanka?

We are committed to delivering seamless financial solutions to help our customers achieve their financial goals. We are Sri Lanka’s premier non-bank primary dealer and provide solutions in stockbroking, corporate advisory, debt structuring and wealth management as well.

Sri Lanka is too dependent on banks and financial institutions; this is due to a lack of awareness and barriers to access, whereas banks and financial institutions garner more trust and visibility. But if you really look at it, these institutions are limiting both corporates and investors. What we are addressing is this need for broader access to the capital market and building investor confidence, which would encourage investors to access the capital market directly. We are also allowing issuers, the companies that are seeking funds to grow, to look beyond traditional sources and find opportunities to directly access investors through a vibrant capital market system.

With the launch of our digital onboarding facility, our customers (a Sri Lankan NIC holder) can open an account from anywhere to invest in our unit trusts and in government securities, which is a first in Sri Lanka. This level of simplicity and access really is a gamechanger for the industry.

We face our challenges with a solutions mindset and are committed to delivering on our brand promise of Performance First, going the extra mile for customers, and setting new benchmarks in our space.

Can you tell us how First Capital is reimagining the financial services sector?

In the last few years, we have played an active role in the market as a knowledge hub, to build awareness, and to create access to the capital market. We have used digital mediums to introduce our products and services to a whole new segment and build investor confidence in the process.

Addressing the shift to alternative solutions from traditional banking services, our flagship unit trust product, the First Capital Money Market Fund, was positioned as an alternative to savings accounts – “as attractive as a fixed deposit with the flexibility of a savings account!” With the decline in interest rates to historic lows, and investors seeking other financial solutions and peace of mind, this strategy proved to be successful.

CUSTOMER – CENTRIC FINANCE IN HARD TIMES

Can you tell us how Orient Finance is disrupting the norm with innovation?

Orient Finance is focused on pushing the boundaries and disrupting the financial solutions offered. The company has continually evolved, focusing on providing innovative and customer-centric financial solutions to customers. For instance, Orient Finance introduced the first vehicle trade-in facility which allowed customers to trade in their existing vehicles for second hand or a brand-new vehicle of any model. By doing this, this timely innovation gave our customers peace of mind as it is a win-win solution for all customers for a long-term mutual gain.

Apart from this, we are fast-tracking our digitalisation drive to bring convenience and seamless experiences for our customers. This digital drive will no doubt make working exciting for employees and enhance efficiencies and productivity across the company, which in turn will create more value for customers and stakeholders.

As a finance company, we are cognizant of our duty to be with our customers during their trials. For example, we introduced flexible loan repayment plans, allowing customers to pay whatever they decide they can until cashflows improve. We also introduced a new working capital loan to help businesses navigate the challenges from the lockdowns and curfews. Furthermore, we are fasttracking our digitalisation drive to bring convenience and seamless experiences for our customers, make working exciting for employees and enhance efficiencies and productivity.

What is the outlook for the NBFI sector and Orient Finance in the years ahead?

The future for the NBFI sector is going to be particularly challenging. At Orient Finance, we are constantly engaging everyone across the company so that we share a common purpose and vision. Our customers must survive for us to survive, and this strategy has built trust and growth even during the unfolding crisis. Our customers came through for us. As a company, we enjoyed a turnaround in this period.

We have a Rs16 billion balance sheet and over 18,000 customers. We expect to double those numbers over the next two years and be among the top 10 finance companies within the next five years. Orient Finance has 31 branches and employs around 500 people. We are looking at consolidation in this sector and increasing our reach across the Island.

REIMAGINING HOUSING FOR A NEW AGE

How do you see Sri Lanka’s real-estate landscape evolving?

These are exciting times for the property market. It is performing exceedingly well, and growth is exponential for several reasons. Investors are turning to tangible assets amidst the prevailing low-interest rates in the search for stable returns in the medium to long term. There is also a growing middle-income population looking for innovative housing solutions with the increasing trends of growing urbanization.

Considering the market shifts shaping the future of the real estate market, is now a good time to invest in real estate?

Certainly! Whether you are an investor looking for a medium to long-term investment option or a prospective home buyer, now is a great time for you to purchase a property. Be mindful that property prices will continue to appreciate. Delaying the purchase decision can result in having to pay more for the same property later. Also, construction costs are on the rise again so a fixed-term contract with a reputed developer will give you stability and value for your money.

How is Kelsey Homes gearing up to meet the emerging needs of different consumer segments?

We share the Janashakthi Group’s commitment to creating greater value for our customers, investors, business partners and team members while having a positive impact on the communities we operate in and the economy at large.

Kelsey Homes is a firm believer in the untapped potential of Sri Lanka’s real estate market and seek to support more investors and homeowners to avail the benefits of investing in property. We are also deeply committed to addressing the country’s housing challenges. We will deliver high-quality housing with unparalleled features and amenities to cater to Sri Lanka’s growing demand with several new projects that offer affordable housing units.

We have firmly established our reputation as one of the country’s most trusted premier housing developers, known for beautifully designed, high-quality homes delivered within promised budgets and timelines. Over 200 real estate and housing projects and more than 2,000 highly satisfied customers around the island stand testament to this.

The exclusive Urban Gateway in Kottawa sold out completely, with all 30 units grabbed by discerning clients and recently we completed the sales and handed over Verdant Villas, Negombo. Encouraged by the success of Central Park Ja-Ela, we have embarked on Phase 3 of this iconic gated project. We will also start work on an apartment project in Nugeg