LMD Readers’

MOST LOVED BRANDS

Q: Can you provide some key insights into Velona’s journey from its inception?

A: Velona, which was founded in 1940 – by my grandfather, Ruskin Fernando – began with towel manufacturing, and expanded into a conglomerate spanning textiles, carpets, drinks, toys, mattresses and agriculture.

Notably, in 1956, Velona became the first Sri Lankan enterprise to export clothing, solidifying its brand reputation at the time. The business excelled in fabric manufacturing, eventually diversifying into stitched garments and accessories, and employing some 20,000 workers at its peak in the 1970s and 1980s.

Velona specialised in knitting, weaving, dyeing, finishing, printing, sewing, and the production of stitched garments and related accessories, and was a vertically integrated facility, which catered to both domestic and foreign markets, and had a production flow of four million pieces monthly.

In 1994, the government signed an Indo-Sri Lanka Free Trade Agreement (FTA), and with it the death warrant of the entire local textile sector and apparel industry. Sri Lanka saw local giants at the time being wiped out from the market.

Among the detrimental trade terms, the one which drove the final nail into the coffin was Indian manufacturers exporting finished items on a duty-free basis with a government subsidy of 17 percent – while Sri Lankan manufacturers were importing raw materials on a duty paid basis.

Velona was one of the very few manufacturers to survive ‘the killing fields’ in 1994, which took place after that FTA.

In 2007, the family companies were liquidated when the majority decided to exit. At this point, I took on the brand and its manufacturing facilities – with the exception of the dyeing and finishing facility.

Today, Velona has grown into a fully fledged hygiene product manufacturer producing world-class diapers for babies and adults. We also diversified into the pharmaceutical space, producing baby diapers under the Velona Cuddles brand in 23 countries.

Q: Could you tell us about the brand’s strengths and market share?

A: The greatest strength of the brand is striving to deliver comfortable and functionally advanced products that are safe. Especially in the diapering space, we are the only business in the world to eliminate cancer causing substances.

All our claims are fully backed up by rigorous testing and certifications by the US Food and Drug Administration (FDA). We also have the Australian toxic free certification, which certifies that our products are ‘Made Safe,’ and process control certification by the British Retail Consortium.

The last 12 months have been a challenge to most businesses in Sri Lanka. However, we have made good progress. An increase in VAT and other direct taxes is always a double-edged sword. VAT is great in terms of increasing government revenue but severely handicaps businesses that are already paying tax.

We have seen the tax base narrowing and VAT payers going underground. On the other hand, the government has crippled our ability to create the capital that funds our expansions. Our market share is well over 70 percent in the established retail networks and around 40 percent in general trade.

Q: How has Velona established itself as a household name?

A: Velona embodies safety, comfort and durability, fostering trust through our dedication to superior products. Expanding into the hygiene sector and pharmaceutical industry, we uphold our commitment to innovation and excellence.

Internationally acclaimed, our baby diaper range reflects a commitment to sustainability with rapid biodegradability that establishes new environmental benchmarks. We prioritise breathability, ensuring optimal comfort for babies through engineered airflow in Velona Cuddles diapers, setting a new standard for newborn care.

Backed by 23 patents, we lead the sector in quality, sustainability and customer sa­tisfaction, continuously pushing bounda­ries to redefine industry standards.

Q: Can you elaborate on the range of hygiene products introduced under the Velona brand?

A: Our hygiene range offers a diverse selection of baby and adult diapers tailored to various needs.

Under the Velona Cuddles diaper brand, we first introduced the Velona Cuddles Classic diaper; and since then we’ve come a long way, introducing several other products such as ‘ezy pants,’ swim pants, bamboo diapers, wet wipes, adult diapers, and disposable bed liners.

The speciality of all these products is that they are made 100 percent free of harsh chemicals and they all suit Sri Lanka’s tropical climate conditions.

Telephone: 2626888 | Email: gehan@threadworks.lk | Website: www.threadworks.lk