The village council or ‘gam sabaawa’ would meet to discuss the management of village affairs, resolve issues and develop strategies for the future.
Var . ri . ga Ath . tho
Statements and reviews by the Executive Management
A message from the Chairman and Managing Director, Mr A.R. Pandithage
A.R. Pandithage
Chairman/Managing Director
In our 75th year of conducting business, we are excited for the future and nostalgic about the past. From humble beginnings DIMO has evolved over the decades to become one of the most innovative business houses in the country.
Automobiles remain our core business. The global automobile market grew by 3% in 2013 and for the first time global automobile sales exceeded 82 million units. Sales grew in China and the United States but continued to decline in Europe. The IMF reported a 3% growth in the global economy for the last year. The forecast for this year is 3.6% and 3.9% for 2015.
Sri Lanka recorded some impressive economic indicators, but the automobile sector showed a decline. However, DIMO’s non-automobile segments delivered an improved performance and this made our profit before tax improve by 4.7%, compared to the previous year. A higher tax charge made the after tax profit reduce by 13%. By our standards this was a modest performance in a turbulent and challenging environment. The Board has decided to pay a first and final dividend of Rs. 10 per share.
At DIMO we build value in multiple ways. Our 75th year was another year of building sustainable value for the company, stakeholders and the environment.
Three key relationships define business at DIMO: our relationship with the customers; our relationship with the employees; and our relationship with the principals.
The bond that we share with our customers has been akin to a marriage, a lifelong commitment. Over and over again our customers return to us with the certainty of our trust and excellence.
Our employees are the soul of the Company. We are successful in attracting the best skills and their inputs are what carry our business. In turn we have sought to give meaning to their aspirations and their lives. It is our culture to be sensitive to their lives and support their goals, thereby making DIMO a “great place to work”. Of our Assets, a long-term employee relationship is of great value. Our employees have powered the Company for 75 years with their commitment and for this I am very grateful.
It is our privilege to represent the best brands in the world while forming trusted ties with our principals over these 75 years. Their class and expertise have been a source of inspiration to DIMO. Today, we look
to acquire new principals, and develop long-term relationships in a similar manner to those maintained presently between us and our principals.
Innovation is a value that we pursue relentlessly. Unless companies constantly innovate they can never grow to their full potential. The DIMO 800 Mercedes-Benz Centre is a major step in this direction. The investment was substantial and the return is likely to take time. The leader we have become beckons us take on this challenge and move automobile care in this country to an unparalleled level. It is a centre like no other, offering unique, state-of-the-art care and services that are on par with the best in the world. We want to ensure that our customers have access to the best products and best after-sales services. We want to ensure that our employees have access to the latest technologies. DIMO will continue to provide the leadership that we have imparted on the automobile industry in this part of the world.
DIMO’s strategic focus is on nourishing and nurturing its different types of capital. This is done through innovative and responsible value creation activities that add value to the Company’s diverse forms of capital. Sharp business strategies ensure the Company remains competitive, a much sought after employer, and in many cases, a pioneer of new and responsible value-creation processes.
The value creation model we have adopted ensures that the diverse forms of capital in which we invest in are replenished and enhanced. At the same time the Group stands firmly by its value framework that is a key motivating factor for the Company. ‘Responsible entrepreneurship’ is the overarching framework of all of the Company’s activities and DIMO remains committed to perpetuating these values.
The fourth integrated report published this year revolves around DIMO’s unique value creation model. The Company’s capital and value-creation activities are discussed in different sections of the report together with strategies. We have supplemented these with candid disclosures of our corporate governance processes and our approach to risk management.
Good governance leads to positive and sustained growth and DIMO sees itself as a trailblazer where corporate governance is concerned. We are scrupulous about following all disclosure requirements and to ensure the expected accountability processes are integrated into each tier of the Company’s governance structure.
How much value we add is as important as how we create value. The process is as important as the product. Our management approach and value-creation model allow us to blend corporate strategy with corporate responsibility seamlessly. We take responsibility for every step of the supply chain, and sustainability is built into all aspects of the Company’s operations.
As a Company we continue to re-define ourselves. Entrepreneurship is about breaking boundaries and adventuring forward. Vehicles will continue to remain our core business. At the same time we will look at new opportunities in newer markets while ensuring that the DIMO brand is safeguarded against the vagaries of local and global economies.
We have made significant investments, within our capacity, to all segments of the Company’s operations. These investments are now beginning to deliver. We are confident that we can ride the wave of post-war growth that the country is experiencing, while contributing to its growth.
Many factors have contributed to the triumphant journey that our Company has taken so far. To our customers, our employees and our principals, thank you for inspiring us and placing your faith in DIMO.
To my colleagues on the Board, thank you for your astute guidance. My special thanks to Gladwin Peries, who retires from the Board after 37 years. Thank you for the contribution you have made to the future of DIMO.
The DIMO Tribe was exemplary in managing the good and the bad times of the past 75 years.
We are here to stay.
A.R. Pandithage
Chairman/Managing Director
23rd May 2014
Colombo
