Raigam Wayamba Salterns: A tale of consistent success

By Randheer Mallawaarachchi

Raigam Wayamba Salterns PLC started its journey in 2005 as a BOI company engaged in the manufacture, refining, packing and marketing of salt products. 

By the time Raigam entered this trade, despite the fact that Sri Lanka was surrounded with sea and blessed with best weather conditions for manufacture of salt, unfortunately the country was depending on imported salt, bleeding its treasured foreign currency and neglecting all potential economic benefits of the industry. 

Despite several industry barriers, Raigam’s challenging decision to invest in the industry has brought many advantages to the country at large. Today Raigam Wayamba Salterns PLC is reaping the harvest of its strategic investment, recording substantial growth even in the wake of the sudden unforeseen global challenges that engulfed the world. 

Raigam Co-Founder, Chairman and Group CEO Dr. Ravi Liyanage shared the inspiring tale of the success of Raigam Wayamba Salterns throughout the years.

Back in the day, salt in the form of crystals was unwashed and uniodised, and was sold in the market in gunny bags and folded newspapers. A process of purification was non-existent since the salt was directly extracted from the salterns before being released to the market.

The product has evolved rapidly throughout the years. Within the course of half a century, the basic product ‘salt’ has changed to ‘value added salt’ and available in granular, free-flow (table salt), fine powder forms as well as specific purpose salt such as pharmaceutical salt.

PVD (Pure Vacuum Dried) salt came into existence; was a significant step up of the industry. 

Sri Lanka’s first-ever salt refinery (table salt plant) was established in Puttalam by Raigam Wayamba Salterns PLC. Later the second refinery was established in Hambantota under the own subsidiary of RWS, the Southern Salt Company Ltd. With these early initiatives RWS played the leading role in fulfilling the ever-increasing demand of consumers for free-flow salt. Although there were few followers, the number is yet to pass five. 

Establishing another milestone, in 2011 RWS commenced to manufacture PVD salt for the very first time in Sri Lanka. PVD salt which comes with the assurance of almost 100% purity (insoluble matter), low traces of magnesium and calcium and other chemicals is manufactured under a fully mechanised process. 

The national demand for salt is 180,000-200,000 metric tons per annum out of which 160,000-170,000 metric tons are to be used for human consumption while the rest is utilised in industry-related activities. 

With such statistics, one might raise the question whether the Sri Lankan salt industry is self-sufficient to cater to the entire island. Sri Lanka is indeed self-sufficient with a few minor exceptions. In other words Sri Lanka needs to import very special specific purpose salt varieties such as pharmaceutical salt only. The demand for such salt is significantly minute. Compared to the above mentioned statistic, the demand for pharmaceutical salt is around 100 metric tons per annum. 

These particular forms of salt varieties require special specifications depending on intended use. RWS is in the process of upgrading production facilities to cater to this demand and consistently attempting to match the quality that this particular field requires. The success story of any company depends on customer satisfaction. That is not restricted to a mere marketing jargon for Raigam Wayamba Salterns. When RWS came into the market, 80% of the market demand was focused on 

crystal salt. 

That gradually shifted to table salt. Then people started to demand value addition. This is as a result of the ever-changing lifestyles of the public. Identifying these changes is the key for success of any company.

RWS is able to interpret the changing needs and wants of its customers. The entire corporate plan revolved around this. Investing in the ideal sources leads to the company offering exactly what the customers demand.

RWS Group has two salterns – Puttalam and Hambantota. In addition to that Raigam Group (holding company) owns another saltern in Trincomalee and also a significant stake in Puttalam Salt Ltd. Accordingly the Raigam Group holds a significant control over the salt industry. 

This forms a strategic triangle. Instead of putting all the eggs in one basket, the group has diversified its operations. It is known that the weather patterns of Sri Lanka are fairly unpredictable. If one saltern is hindered by unfavourable weather conditions, the supply remains relatively unaffected given that the rest are operating unobstructed.

Year 2020 has brought many challenges to the RWS Group. The pandemic crisis brought many dents in the growth of firms across the island. However, the group managed to tackle these challenges optimally. At a time when companies sought to cut down their labour forces, RWS refused to resort to layoffs. The relevant dividends were paid off on time. The employees were even offered an enhanced remuneration package due to the hard work and commitment shown during the difficult period. The need for moratorium did not come up at any stage.

The consistent growth of the company is partly due to the merits and support extended by the Government. The Special Commodity Levy of Rs. 40 per kilogram of imported salt imposed about 10 years ago was a great protection measure for the local industry. Finally that resulted in many investments and the country achieving self-sufficient status. There is no doubt that this is a great example for benefits of prudent fiscal policies of a country.

Again during the first wave of COVID-19, very correctly the Government has imposed import sanctions on many products that can be manufactured in Sri Lanka, including salt to preserve treasured foreign exchange reserves. However, as the country is self-sufficient in commonly used salt, these sanctions will affect only the special purpose salt imported in a small volumes and certain industries who imported their own requirement at a higher cost.

Irrespective of the volume it is an insult to import salt in a country where there is extreme potential to source the product locally. The Government has identified this crucial fact. Increasing the supply of products with special characteristics overnight is impractical. Therefore, patience is necessary without resorting to importing the product. The Government is requested to urge the public to show tolerance and patience until the company delivers the relevant products whilst maintaining quality. RWS has positively shouldered this national endeavour.

Considering the present situation, the PVD salt production capacities are being enhanced drastically. This is the next generation product which the future demands and also used as an ingredient for high-end products. 

RWS has set its sights on the production of flake salt targeting the international market. There is a high demand for flake salt in countries like Australia and Japan. This form of salt is to be produced in hygienic conditions whilst adhering to organic processes. The research and development aspects are nearly complete, and in due time, Raigam Wayamba Salterns will be able to charge into the international market.

Additionally, the company plans to introduce a new product line to the market with a new patent application. This product will be produced through a mix of new technological innovation and organic production processes. The specifics of the product shall be kept undisclosed as of yet, but rest assured that the loyal customers of RWS can expect a pleasant surprise in the near future.