Maliban Group’s Managing Director Kumudika Fernando and Group Chief Executive Ravi Jayawardena discuss the brand’s pioneering spirit, its remarkable journey of growth, resilience, and the unrelenting passion for excellence behind this iconic Sri Lankan success story.

As the Group celebrates over six decades of excellence in the confectionery industry, Fernando and Jayawardena delve into their strategies for international expansion, the transformative power of diversification, and the strong connection that the Maliban Group maintains with its people and communities, and how innovation, sustainable practices, and a consumer-centric approach drives Maliban towards its goal of emerging as a global confectionery powerhouse and a world-class Sri Lankan brand.

What have been the major hurdles faced by the company in recent years, especially during the unfolding economic crisis? What was your biggest priority in charting a course through difficult times?

Fernando: The past few years have presented several challenges for Maliban. One of the major hurdles we faced was the impact of the global pandemic on the FMCG industry. We have business interests in several segments, such as biscuits, milk, cereals, agriculture and pharmaceuticals, and the rising costs of raw materials, manufacturing, and operational expenses significantly affected our profitability. Moreover, disruptions in supply chains and fluctuating consumer behaviours posed additional challenges compounded by import restrictions during the economic crisis. To manage these, we had to adapt and consider alternatives to ensure zero impact on taste or quality.

Of course, our key priority was to ensure business stability and continuity while safeguarding our employees. We focused on implementing cost efficiencies without compromising on quality. Moreover, we explored opportunities to diversify our offerings to cater to evolving consumer preferences, which allowed us to navigate the crisis while staying true to our commitment to customer satisfaction.

Beyond biscuits, Maliban has transformed into a food company with a diverse product portfolio. Could you elaborate on this transition and its impact?

Fernando: This transition was driven by our vision to expand our footprint in the food industry, cater to the changing demands of consumers, and even step into new markets. We realized that diversification was vital to maintaining a competitive edge and achieving sustainable growth. We understood early on that allowing customer preferences to guide us would be an excellent way to continue to delight.

As a result, we have maintained our market dominance in the biscuits space through a wide range of products catering to diverse customer preferences. Thus, our portfolio of biscuits now includes many varieties under various ranges such as crackers, cream biscuits, puffs, health biscuits including sugar-free biscuits, sweet biscuits, gift assortments, savoury biscuits and a range of premium biscuits, catering to an emerging group of customers with more sophisticated tastes.

Our strategic approach thus involved investing in research and development to create innovative and nutritious products that align with contemporary health and wellness trends while expanding into entirely new markets and diversifying our product portfolio.

Meanwhile, our commitment to product quality is a cornerstone of our offering and a fact well-known locally and internationally. Consumers savour Maliban products in 40+ countries across five continents, and this global presence continues to expand. As we forge ahead with innovative and novel products, we have solidified our reputation as a trusted Sri Lankan brand that delights consumers around the world.

These endeavours include milk under the “Maliban Kiri” brand, which includes full cream fresh milk along with convenient powdered products, Maliban Malt, Non-Fat and Melkco Full Cream Milk Powder, and Vitagen, which is a protein supplement. In fact, in the milk powder segment, we have quickly gained traction and the brand is now among the leading brands in the space

Alongside this, we have also entered into the agri products space with Maliban Agri, which includes tea, coffee, and cereal products such as Yahaposha and Nutrifix, along with Pure Harvest Mangoes which we grow on our farms, along with tissue culture facilities to further our presence in the agri space. In 2021, we also entered the organic fertilizer market, looking to support the national effort towards more eco-friendly agricultural practices. We also support a strong local network of over 3000 farmers from whom we directly source our natural ingredients, and we are committed to their development by providing the necessary resources and guidance, enabling them to continually improve and prosper.

In addition to this, we have revived Zellers – Sri Lanka’s first chocolate brand, established in 1964, and re-established it as a leading brand of chocolates and enrobed cookies, including fan favourites like Roundies and Immore. Our portfolio diversification has also been helped by Little Lion, our sister company, which specializes in wafers, cookies, cakes, biscuits and bakery items, catering to niche and mass market segments.

Recently, we made a foray into the area of pharmaceutical manufacturing here in Sri Lanka to support the nation’s pharmaceuticals supply chain, which has been under some stress in the recent past. The manufacturing operations, together with our pharmaceutical imports and distribution activities are carried out through Maliban Bio Ventures (Pvt) Ltd.

As a result of these factors, the impact of our transformation has been significant. Not only have we increased our market share in the confectionery industry, cementing a dominant position in the market, but we have also expanded our reach to diverse consumer segments and entered entirely new markets.

In terms of future growth, what are the key factors that you believe will shape or influence the company’s trajectory?

Fernando: There are several key factors. One such factor is the ever-evolving consumer landscape. We recognize that consumer preferences are continually changing, and we must stay attuned to these shifts to remain relevant. As the industry leader, we will continue to prioritize consumer-centric product innovation and consumer engagement to anticipate and address their needs effectively.

Furthermore, sustainability and environmental responsibility will be critical in shaping our growth strategy. We are committed to minimizing our environmental impact and implementing sustainable practices across our value chain. This includes optimizing energy consumption, reducing packaging waste, and supporting local communities through various environmental initiatives. By prioritizing sustainability, we aim to resonate with eco-conscious consumers and contribute positively to society. We have demonstrated this commitment through our having received Carbon Footprint Certification from the Sri Lanka Climate Fund, which also makes us compliant and in alignment with the ISO 14064-1:2018 standard for greenhouse gas (GHG) emissions quantification and reporting.

Moreover, global market dynamics will play a significant role in our future growth. We will continue to explore opportunities for international expansion and strategic partnerships to extend our reach to new markets.

Maliban is a prominent company with aspirations for further international expansion. How will you achieve this? How important is leadership in this endeavour?

Jayawardena: To achieve our aspirations, we must cultivate certain qualities and values in our leaders. First and foremost, a visionary mindset is crucial. We need to have a clear, coherent and ambitious vision for the company’s growth on a global scale, along with a strategic roadmap to achieve these objectives.

Our ambitions propel us to seek growth opportunities outside of Sri Lanka, which is a limited and mature market for us.

Navigating expansion in the modern age necessitates a shift in strategic mind set. Traditional expansion models don’t sufficiently accommodate the complexities of globalization, cost efficiencies, or the diverse capabilities offered by different countries. To address this, we have innovated a new model that leverages strategic partnerships and joint ventures with global industry leaders. To amplify our brand’s global footprint, it is vital to develop innovative business models that generate a win-win scenario for all involved. As a demonstration of this strategy, we have established a partnership with Reliance India, a significant player in South Asia’s expansion projects.

The role of people leadership in international expansion is crucial. This aspect of our strategy is about investing trust in our team’s capabilities to steer Maliban’s international growth. Our success hinges on the ability of our people to effectively lead, adapt, and excel in diverse markets around the world.

In this endeavour, we have already commenced a project with global giant, Reliance Group of India to manufacture Maliban biscuits under the Maliban brand name in India. The launch of this product line, slated to take place this year, will mark a paradigm shift in Maliban’s history. We are also aggressively looking to establish manufacturing bases in Bangladesh and a few markets within Africa. We already manufacture full cream milk powder under the Maliban brand name in the Netherlands, which is sold in UK and Europe (predominantly Germany and France).

Next are adaptability and agility. The international market is dynamic and everchanging, and we must be flexible in responding to shifting trends, customer preferences, and market demands. Embracing innovation and staying ahead of the curve will be instrumental in retaining our competitive edge.

Another key quality is effective communication. As leaders, it is vital to communicate our vision, mission, and goals with clarity and transparency to our teams. Engaging with employees at all levels fosters a shared sense of purpose and empowers them to contribute meaningfully to our international expansion efforts.

Effective communication is the foundation of meaningful collaboration, from the leadership echelons to all levels of our command structure. Our emphasis is on fostering robust partnerships both within our organization and with external stakeholders. Key to this process is the integration of positive negotiation skills, ensuring outcomes where all parties benefit – a win-win situation. This collaborative and mutually beneficial approach will fortify our market position, enhance the resilience of our supply chains, and empower us to deliver extraordinary value to our customers across the globe.

All of this is then underscored by our strong and definitive commitment to sustainability and social responsibility. Thus, succinctly, to ensure successful global expansion, we must ensure that our growth aligns with environmental and social ethics, earning us the trust and loyalty of global consumers.

What is your approach to crisis management and people management?

Jayawardena: Effective crisis management is a multifaceted process, significantly involving both internal and external stakeholders. It demands proactive planning, agility, and clear, empathetic communication.

At Maliban, we specialize in devising comprehensive contingency plans, foreseeing and preparing for a myriad of potential challenges. Our experiences with past crises have sharpened these skills and bolstered our resilience. Swift decision-making and prioritization of employee well-being are central to our crisis management approach. We put significant effort into ensuring that our actions are appropriately targeted and controllable factors are meticulously managed. Open and timely communication with internal stakeholders is key, enabling us to address emerging issues promptly and transparently.

Moreover, during times of crisis, we place a high value on personal traits such as honesty and empathy. These qualities allow us to maintain trust and foster understanding, crucial components in navigating challenging situations effectively.

In times of crisis, our processes are designed to enable us to remain calm and avoid making bad decisions under pressure. We cascade regularly and focus on the things we can control while monitoring those things that we cannot control. A great example of this approach in action was how we managed our strategy and operations through the Covid pandemic; we capitalized on the manufacturing and distribution, which were in our control while adapting resiliently to factors we could not control such as lockdown curfews and mandatory restrictions placed by the government.

When it comes to people management, employee well-being is at the core. We prioritize fostering a positive work environment where employees feel valued, engaged and motivated. We invest in training and development programmes to empower our workforce and enhance their skills. We also encourage a culture of innovation and creativity, allowing our employees to bring fresh ideas and solutions to the table. We also prioritize health and safety, providing support and resources as needed. Recognizing their contributions and celebrating their achievements, regularly and in a structured manner, further reinforces a sense of belonging and inspires our people to perform at their best.

What are the key attributes of a great leader who can inspire teams to drive Maliban towards its goals? How do you go about building and nurturing an empowering culture?

Jayawardena: A great leader at Maliban embodies several key attributes. Firstly, they must lead by example, demonstrating a strong work ethic, integrity and dedication to our values. A visionary leader can effectively communicate the company’s mission, goals, and direction, inspiring teams to share in the vision and work towards common objectives.

Empathy and emotional intelligence are essential qualities that enable leaders to understand and connect with their teams. By actively listening to their needs, concerns, and ideas, leaders foster a culture of trust and mutual respect.

Building and nurturing an empowering culture is a collaborative effort. Therefore, we promote a culture of innovation, where employees are encouraged to think creatively and take calculated risks. Providing a safe space for open dialogue and constructive feedback ensures that everyone’s voice is heard and valued.

Additionally, as mentioned earlier, constructive rewards and recognition are crucial. We also believe in investing in employee development and growth opportunities, helping them to achieve their professional goals. To this end, training programmes, mentorship and career progression initiatives empower our employees to reach their full potential within the organization and emerge as leaders who can inspire our people and take the unique taste of Maliban to the palates of the world! A culture of rewards and recognition has helped us maintain high employee morale while motivating them to perform continuously. The company is proud to have been recognised as one of Sri Lanka’s “Best Workplaces” for two consecutive years.