Innovation THE WAY FORWARD
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Chairman of Flexport Group, Nandadasa Narayana is the grandson of D J Wimalasurendra, who is considered the father of hydroelectric schemes in Sri Lanka. Inspired by his grandfather's vision that it is one's duty to leave something for the country, he has created a number of inventions that have received global recognition. Nandadasa has two Guinness World Records in his name and has brought fame and recognition to Sri Lanka. He spoke to Business Today about his various creations and the need to promote innovations in the ‘New' Sri Lanka and the world.
by Thilini Kahandawaarachchi
Photography by Menaka Aravinda
You are an engineer by profession and you are also an inventor. Would you like to share with us how you got into this field?
There is a long history. My grandfather was an innovative engineer working under the British rule. He was D J Wimalasurendra, who initiated the Laxapana Hydro electricity plant. My grandfather always used to say that we must leave something for the country. So following his advice, I also believe and work with the same vision. Working with Dr Kulasinghe at his R&D workshops sharpened my innovative skills and I remind him with gratitude.
Inventors are people who always see the positive side of any negative situation. I believe that there is no point in perpetuating the blame culture inherent in our society. Instead I advocate a research culture; I see an opportunity in every failure. When there is no funding forthcoming, I search for a need of the market and innovate using what is available. In the end I find that I have invented a new process, a new procedure or a new product. I also train my employees to invent. At Flexport Center for Innovation and Entrepreneur Development (F-CIED), I plant the seed of innovation. It grows and brings opportunities. This is what we should do in every organisation if you want to beat the world competition in the ‘New' Sri Lanka.
I feel that we must cut the subsidies and support the entrepreneurs by showing them how to invent, find a need and give them moral support. The scientists, policymakers, technologists, marketers, publishers and most importantly the investor community must get involved to fund the projects. It is high time to get together to help them to invent and commercialise the inventions and bring the economic development that ‘New' Sri Lanka so badly needs.
We need not go begging to donor countries on bended knees. We have the Diaspora to help us. Media, policy makers and foreign emissaries have a big role to play in this sphere of development. We proved that we never fail when you have a "Yes, We Can" mentality at the leaders level. We proved to the world that the impossible is possible and broke many traditional notions. But it is with the support from everybody that we will be able to share the benefits of the fruits of our labour.
You have qualified for two Guinness World Records. Could you tell us a bit about those achievements?
In fact from 1982, starting from the first England-Sri Lanka test match, we qualified for four records. I qualified for the Guinness World Records for the world's largest test cricket trophy and for the most expensive diamond studded Trophy valued at US$ 305,000 which we made for Steffi Graph, the world's women's Tennis Champion. We also made the world's largest cricket trophy, which was 84" high and it was done within just twenty hours.
How has your company, Flexport contributed to your work?
Flexport means Flexible Exports. Our company is a Global Job shop. We make custom orders. At Flexport, most of our clients come at the last minute, though we finish the work quickly, our creations are always outstanding.
Our recent innovation on Colour printing on to any surface concave or convex or irregular surface has made our products outstanding with faster production. We do not worry about competition as we never stop innovating. Customers always bring their needs to us. We invent. They call us Flexport Innovations. It helps keep our imaginative fires flaring strong.
Once Tony Greig said that whenever he sees our trophies, he knows it is Flexport. We have made our own corporate identity because we always make something different; this is our achievement that brought many worldwide clients to our doorstep. As a result, Flexport won the National Most Outstanding Entrepreneur of the Year '96.
It is thanks to Flexport that I was able to do all these things because everything I do is funded by Flexport. At Flexport, our motto is "you name it, we make it". Therefore, people come up with all sorts of requirements. We don't do mass production, but if a customer wants it, we make it. So we have been able to create many things using our innovative 160 indigenous production processes developed in-house. We are at an advantage in the world market because our production costs are lower. Sometimes we have to meet orders within a few hours. If you ask me to show you our machines, there is nothing much to show, but we have the systems in place to create and manufacture what is required within a matter of few hours. That is our innovative skill.
Through Flexport Centre for Innovation and Entrepreneur Development, I aim to inculcate the habit of innovation in our children. This is what should be done for the generations to come.
"It is only by commercialising local inventions we will be able to stand on our feet with high profit margins no other business could earn."
I believe that "PacGro" was the world's first no garbage packaging solution. Can you tell us about it?
A friend of mine in USA wanted me to come up with a packaging solution without using expanded polystyrene, styrofoam, but using natural material that is biodegradable. I had not done anything like that before, but I usually take on such challenges.
I received a scholarship from the EDB to attend Design & Packaging Centre in Korea. It was there that I developed my packing system. I realised that we can use waste by-products of the coconut industry and few other ingredients for packaging.
I remembered that long time ago when we used to go to school, there were large heaps of coir and we would climb on top of those coir heaps and jump off and nothing would happen to us. When I thought about it I realised that it absorbs the shock. As you know, the brittle coconut does not break even if it falls from 60ft high. That is a brilliant invention of nature and I replicated it. The World Intellectual Property Organisation (WIPO) has found that the value of my packaging solution is worth more than US$ 6 billion.
How did you put these ideas into practise?
Being an engineer, I wanted to do something for the world at large. I developed the first invention in the world with which you can plant trees out of a seed tablet and packaging made out of the same material which can be used to grow trees.
You can put seeds in ‘PacGro', the innovative tablet, seal it and airdrop in hilltops during the rainy season and then it starts growing. It can absorb water for at least one month, a period sufficient for the plants to grow its roots. Trees in inaccessible hilltops bring much needed water to function the turbines that my grandfather initiated. This was copied by foreigners and now they are exporting it. Our local investors ignored the opportunities that were open to them.
Arnold Schwarzenegger, the California Mayor was called by TIME as "The Global Salesman for the War on Carbon". He has said, "it is enough waiting for someone else to lead. Leadership is action." He is selling the concept of clean environment for the future and a booming green tech economy with all the gizmos anyone could want.
If they know that we have invented 125 green product innovations in Sri Lanka and if the media and US-Sri Lanka embassies together with BOI bring this to their attention we can be sure of investments. Then the investments would be forthcoming in this hour of vital need for green products. That is why I say we need not go begging nor do we need to kneel down for investments when you invent for the needs of the world. It is cost efficient, green products that the world needs today. Now that the war is over, wastes of coconut industry in 100 countries around the equator could be converted to make green products that we invented and patented. The royalties are for Sri Lanka. Fears of the Sri Lankan investors will be vanished and they will not be risk averse anymore. New ventures will emerge.
When I spoke about my invention in Australian media, they were very interested and wanted to get my patent and license. By that time I had already signed a joint venture with a Canadian company and I could not sell my patent. As a result of the conflict situaton that prevailed, there was a drop in investments in Sri Lanka, but it is no more. Now it is time for action.
"I am prepared to offer US$ 6b worth of intellectual capital for the development of this country. We proved its commercial viability in USA, but it has been shelved due to the former war situation in the country. Now the time has come..."
However, what is interesting about inventions from a monetary perspective is that, if you invent a product and sell it, you could get about 700% at the start. It is not like buying and selling. Innovation commercialisation is an entirely different game. The BOI must intervene to bring these products on to the market shelves by finding appropriate investors.
In my inventions I focus on natural material that will not damage the environment. They are eco-friendly and designed to preserve our planet earth. I expect my innovative concepts to be picked up by scientists to make use for research, not just to add a few letters behind their names and shelve the research results but towards commercialisation. Here we need our inventors, scientists, technologists, policy makers, marketing, media, angel investors (the Diaspora) and venture capitalists to get together for commercialisation of R&D and their results.
For example, the thirty-five kilometre long Hamilton Canal from Colombo to Negombo is filled with water hyacinth. So, I thought that when my products require water hyacinth as one ingredient, it would also result in cleaning up the canal providing a waterway to connect Colombo and Negombo and make use of it for transportation and to minimise traffic congestions resulting in low fuel consumption for the country. Though many investors were interested in my invention, the situation in Sri Lanka prevented them from supporting me, but now we have a New Sri Lanka conducive for business and commercialising inventions is a must. Business plans are ready, so investment is vital.
During my tenure as Commissioner of Invention at the Inventors Commission of Sri Lanka, I came across about 6,000 innovative youngsters. That made me realise what potential we have in Sri Lanka. Their inventions were very good and from 1997 up to 2009, they have won up to twenty gold medals and trophies. I got the first prize in Geneva for coir pack packaging "PacGro". For the past sixteen years I have been involved in this industry and all that we earn at Flexport is utilised for our research and development.
What were the challenges that you had to face?
For the last five years, I took the challenge of running Flexport without taking any loans from any bank. I am running the company with what I earn from the innovations. We did an invention that does colour transformation to any surface and that is one area that we can get money. There are those who import it, but they can't match my price. My price is one seventh of the American price because it is my invention and because I use local material. I have won many awards for inventions through the years.
The Sri Lankan funding system is not conducive for innovation commercialisation. We win trophies and medals for our inventions, but it ends there. Here the policy makers should be more concerned of the funding mechanism. Today we need a research culture to go forward.
There is no funding mechanism in the country. So, the Central Bank Research Division must intervene and find a solution for the inventors to invent. The challenge is to find seed capital and funds for commercialisation of inventions. Then the bankers can earn and support collection of royalties to make the Sri Lankan economy to grow faster.
So, have you commercialised your inventions?
A recent report of the Export Development Board stated that out of my intellectual capital that was patented, 324 exporters have exported Rs 18.4 billion worth of exports. So, I am very happy about that and I feel that I have done something for my country for the free education that I received. I invest whatever I earn from my inventions back in development of setting up a truly authentic venture capital system for Sri Lankan inventors to commercialise their innovations. Debt financing is not the right funding instrument for innovation commercialisation. When this is done I think I have done my CSR as Flexport's Chairman.
Now with the end of the War, do you think there will be better prospects for inventions in Sri Lanka?
Sri Lanka is one of the best places to invent. An invention arises where there is a need. As the saying goes, necessity is the mother of invention. The war is over and now we have the economic war, for national development.
My great grandfather made a seal for the British Governor, Brownrigg. The British emblem was engraved in chemical on a diamond. That was one of the top class inventions and Governor Brownrigg gave it to Queen Victoria and the Queen immediately called for my grandfather to England to train British craftsmen. He was the first Sri Lankan to transfer technology to the British.
As the only country to crush a terrorist organisation, we have to become even stronger. We have very little resources, but we all have brains. It is through innovations that we can go ahead. We don't have to be indebted to foreign nations. The Governor of the Central Bank Nivard Cabraal stated, "we will never go after donors or lending agencies with a begging bowl. We are capable of standing on our own and can raise funds through capital markets. We have dignity and our own identity in the international community. Sri Lanka does not want to go after anyone for aid on bended knees". I add, that it is only by commercialising local inventions we will be able to stand on our own feet with high profit margins no other business could earn. When the policy makers understand this, we can achieve an economic miracle.
We have such a lot of talent in Sri Lanka and we need to use them. We have not created the financial environment for commercialising local inventions. When an idea is published without a proper fund system, that idea is stolen and people put those ideas into practice in foreign countries and then export them to us. First we have to create the financial background and it is only then that we can go forward.
What are your future plans?
As I said, Sri Lanka has a lot of talent and what should be done is to bring all these forces together. One Dhammika Sujith, an inventor who had no engineering background made an invention for de-fibering coconut husks. Five products can be made from the coir husk defibering machine that he invented. Omat fibre, Bristol fibre, mattress fibre, micro fibre and coir pith. All these can be made using one machine. For 120 years Sri Lanka had the coir fibre industry, but no one could invent a machine that is safe. However this new invention is extremely safe. Anyone can use this machine without any training. It's been six years since this invention but still there are machines that do the same thing, but not as effectively or as efficiently as this invention. Usually it requires about 30 people for this operation, but this new machine needs just 3 people. Power consumption is about 70% lower and the price is about 50% of the machine that we import from India.
There is another invention by Prince Electronics Mawathagama, a computer mouse that can be used by a person who does not have both arms. It works according to the movements of the head. Such an invention can be used by disabled soldiers etc. It won the second price out of the whole world at the International Inventors Award in Geneva in April 2009. The coir de-fibering machine won the third prize.
We have received a number of trophies and medals at the International Inventor's exhibition in Geneva for the last 15 years beating 45 countries. It is judged by 65 competent international jurors. But my question is what is the point of winning awards unless we have an appropriate funding system to commercialise them? Either it must be the Diaspora or the angel investors or a truly authentic venture capital system. Otherwise it will be a futile effort.
As we have people with the required expertise, the missing link is funding. If this could be arranged with our Diaspora then a new Sri Lanka will rise with growth not only in infrastructure development but with parallel development in innovation commercialisation. This, as opposed to buying and selling, can generate larger profit margins leading to better National Development.
We must build capital for innovation. One way is to market our innovations by selling licences. We need government support for this as we are in the early stage of development. Another reason for this is our local investors are risk averse and look at inventions as non-starters, even with supporting project documentation, business plans and quantified profit forecasts, they are still not forthcoming with the funding.
Flexport R&D has accumulated number of innovative solutions to Water, Energy, Health, Agriculture, & Biodiversity to take new Sri Lanka toward sustainable development. We should help build this country and we should take the initiative. I am prepared to offer US$ 6b worth of intellectual capital for the development of this country. We proved its commercial viability in USA, but it has been shelved due to the former war situation in the country. Now the time has come for dynamic entities to make investments. Our next step should be to educate our children about innovation and entrepreneurship. I have already pioneered the Flexport Centre for Innovation and Entrepreneur Development.
We have developed 26 franchises to go global and it is another pioneering project for Sri Lanka. So we can become franchisees and bring much needed foreign currency by innovation commercialisation.