Approaching its 50th year of operations, Abans, that has grown into one of the biggest brands in Sri Lanka, earned another distinction when its founder chairperson Aban Pestonjee was interviewed by Prof Geoffrey Jones, faculty chair of Harvard Business School’s (HBS) Business History Initiative on the topic of "Creating Emerging Markets.” Among the most prestigious business schools in the world, HBS will preserve the full transcript of the two-hour-long video interview in the archives of its Baker Library that can be accessed by students for research and case studies. In addition to aiding students at the HBS in Boston, Massachusetts, the interview will also be included in the Library’s Historical Collection and "Creating Emerging Markets” website.
"You learn when you make mistakes, and then you come out stronger because you know more about the business even after that,” Pestonjee’s words were quoted on the HBS website. During the widely acclaimed sit-down discussion at the Sapphire Room of the Taj Mahal Palace Hotel in Bombay, the duo covered topics such as "The process of innovation,” "The acquisition of international technologies,” "The role of family,” "The issue of succession,” "The recruitment of professional management,” "Relationships with government, non-governmental organizations and international organizations,” and "Responsibility for society and natural environment.” In response to Parsiana’s request seeking information on Abans, we were sent an 18-page transcript of the candid interview.
Prestigious Colombo City Centre being developed by Abans
Starting as a small corner shop selling used home appliances, Abans has emerged as the market leader in electronics and household appliances with 30 independent diversified fields of business and services and a network of nearly 750 showrooms around Sri Lanka and about 50 in after sales service and franchise. Abans Duty Free shops at the arrival and departure terminals at Colombo’s Bandaranaike International Airport familiarize even foreign tourists with the Abans name. Some of the other companies included in the Abans brand are Abans Electricals, Abans Environmental Services, Abans Construction and Engineering, Abans Tours, Abans Tourist Hotel, Abans Investments, Abans Graphics, Abans Marketing, Abans Warehousing, Abans Development, Abans Auto, Abans Office Automation, Abans Engineering. The roads in Sri Lanka are being cleaned up by AP’s Environmental Services.
Considered one of the most successful businesspersons in the country, Pestonjee was able to nurture the group of companies into a mega empire that has a workforce of nearly 13,000 employees. The flagship company of the Group is Abans PLC, the trading arm for varied products comprising globally trusted brands of electronics and home appliances, mobiles and security surveillance systems, communication equipment and sanitary ware plus a host of other household appliances.
The scenario today is far removed from the one in 1968 when yearning for foreign electronic appliances that were banned in Sri Lanka, she coaxed expatriates leaving the country to sell her their used kitchen appliances and scoured auctions for washing machines, floor polishers, grinders, ovens and other gadgets. In her garage workshop these gadgets were serviced and spruced up before putting them up for sale with a guarantee. This emphasis on quality and reliable after sales service has earned Abans a valued reputation over the years.
When the Sri Lankan economy opened in the 1970s, Pestonjee succeeded in getting franchise contracts from major British brands like Hoover and Electrolux, as well as Japanese brands like Mitsubishi. She managed to overcome manufacturers’ fears about a single agent representing multiple, competing brands. When she first introduced Korean brands like LG (formerly GoldStar), the Sri Lankan consumers were hesitant until she assured them of Abans’ after sales service.
As Pestonjee noted in her chairman’s statement in the annual report for 2016-17, "The diversified Abans Group of companies have performed well during this challenging year and we have made steady progress in our landmark mixed development project, the Colombo City Centre. The 47-storey joint venture with SilverNeedle Hospitality of Singapore is on track to change the Colombo skyline by redefining family-style entertainment, international cuisine and luxury residential facilities.” This lifestyle mall project on Sir James Peiris Mawatha, Colombo 2, overlooking the picturesque Beira Lake, "is fast approaching completion with food courts, branded shopping complexes, 3D cineplex and many other exciting facilities lined up for Sri Lankan consumers.” Comparable with the best in Singapore and Dubai, the "impressive piece of innovative architecture and engineering” will accommodate an upscale hotel operated by Next Hotels, the flagship brand of SilverNeedle Hospitality.
The company’s success is attributed to "innovation, willingness to take risks, courage of conviction, ethical operations and personalized customer care.” Supporting Aban in her ventures are her children Behman Pestonjee who is the managing director, with Saroshi Dubash and Rusi Pestonjee serving as directors, along with Hiran Embuldeniya and Sriyan De Silva Wijeyeratne as independent non executive directors. As Aban acknowledged in the interview, many of the Group’s new initiatives were led by her children. Although she initially felt skeptical about some of their proposals, she eventually learnt to place faith in their judgment and gave them latitude to take decisions for the Group. To ensure that the children have "complete independence” in their respective "territories,” the elder son looks after marketing and sales, their daughter is in charge of the inventory and stores part of it, and the younger son is in charge of the accounts. "I now still look after the service part of it,” conveyed Aban during the interview. She was equally appreciative of the role of professional managers in the company and referred to the plans under way to make Abans a public company in the next three or four years.
At the age of 70 years Aban serves as a trustee for the local Parsi community that has now dwindled to 40. She continues her practice of personally visiting Abans showrooms across the island. To prevent complacency and idleness, she believes in the strategy of shifting employees to new locations and investment in job training for employees. "I have this thing called HHP: honesty, hard work and persistence — I am a very persistent person,” she declared during the interview.
"In a business environment that is becoming increasingly crowded and competitive, (where) customers are continually bombarded with new brands, new products and new conveniences, making purchase decisions even more complicated… we reiterate our commitment to our customers to introduce the latest technologies, conveniences and modern ICTs (information communication technologies) to people all over the country,” assured Aban.