Damsila Resources – the evolution of a family business

Palitha Dalpatadu, Chairman & Managing Director of Damsila Resources (Pvt) Ltd., discusses the company’s goal to become a top mineral exporting company.

Take us through Damsila Resources’ journey, and what is your vision for the future?

My father, Arthur Dalpatadu, ventured into exporting phlogopite mica to Libya’s oil industry in the mid-1960s. Phlogopite mica is used in industries such as electrical insulation, high-performance plastics, rubber, asphalt roofing and drilling mud. Drilling mud was used in oil and gas drilling operations to carry rock cuttings to the surface. Subsequently, in 1969 my father founded Krishna Mining Company Ceylon Ltd. to establish a joint venture with an Indian firm called Krishna Mining Company India. However, the joint venture did not materialize, and we established the company ourselves and ventured into the mineral resource industry. Later I founded Damsila Resources (Pvt) Ltd., with my wife and two sons to streamline the phlogopite mica mining, processing, and export business, and have now ventured into silica quartz processing as well. I still serve as the chairman of Krishna Mining Company (Ceylon) Pvt Ltd. while my eldest son is the Managing Director. Krishna Mining continues to be the premier silica quartz mining company in Sri Lanka. We initially specialised in phlogopite mica mining and exports, and later expanded into silica quartz. In the early 1980s, the company also exported salt from Jaffna to Bangladesh before the war started. We have also through our associate companies ventured into heavy mineral sand exploration and resource development. Mineral sands such as ilmenite and rutile are used in the pigment industry and are found in everyday household items. They are also used in the production of titanium metal used in aviation, medical and aerospace industries. Silica quartz is used to manufacture high-quality solar panel glass, ceramics, fused quartz, fibre optics, lenses, and semiconductor-related material. Our main interest continues to be in the mining and export of phlogopite mica, in processed and micronized powder form. Damsila is reputed as a company mining, processing, and exporting premium quality mica. We employ over 250 people and own the only fully developed underground mica mine within Sri Lanka in the Matale district. Our main processing centre is at Palapathwela in Matale. The mica processing plant includes a moisture control system and a powdering facility capable of producing various mesh sizes from 20 to 325 mesh. We export to Japan, China, South Korea, Germany, Austria, the USA, and India and account for more than 90% of the phlogopite mica exported from Sri Lanka. At present, about 65% of phlogopite mica product is exported to the Japanese market. We have long standing relationships with many of our customers who have trusted us over the years for quality and timely delivery. We have established ourselves as the industry leader in phlogopite mica exports from Sri Lanka due to our investments in developing infrastructure and human resources in this industry. Recently, we ventured into silica quartz value addition where we have set up a silica quartz grits production plant and are in the process of establishing a high purity silica quartz powder production factory. All these silica products are for exports and the mineral is sourced from our associate company (Krishna Mining) owned silica quartz mine in Ambalamana Galaha. Looking back, I recall the first consignment of silica quartz to Japan in the 1980s, which did not go as well as planned. We were in a hurry to get our export venture off the ground that we had some quality issues. I had to travel to Japan several times for discussions and replaced the entire first shipment free of charge. The customer continues to place orders with us. I joined the business in the late 70s, and today, my sons are taking the company forward as a third-generation family business. I helped diversify the business into mineral sands, plant biotechnology and ventured into petroleum distribution through associate companies. We introduced mechanisation across our operations, especially in silica quartz mining and processing. Today we also use geographic information system (GIS) technology and satellite mapping for our exploration work, taking Damsila and its associate companies to a whole new level. Today we continue to invest in technology to drive productivity. We are exploring options to diversify into value-added products to reach industries faster and grow the export market rather than exporting semi-processed materials. From there, we hope to get into the finished product space and aim to be a leading industrial mineral company in the country.

Tell us a little about your partnership with Sri Lanka@100. What does it mean to you to be a part of this programme?

The lockdowns due to the Covid-19 pandemic did pose challenges for us. However, we continued our operations with the support of the government and met our export orders on time. We soon started getting inquiries from customers who wanted to diversify their sourcing away from China. We are confident of getting into new markets because of the evolving dynamics in global trade, and the partnership with Sri Lanka @ 100 will help us get there much faster, I believe. I am confident the programme will help the company transition into a more streamlined value-added export company and gain new markets. We will explore opportunities to streamline operations, gain expertise, improve capacity, and identify technical and technological gaps that can help us leap to the next level.

What is the business lesson you had to learn the hard way?

I have been in the mineral sourcing industry for more than 40 years. It has been a difficult journey but also a rewarding one. We have had many failures and obstacles along the way, but we believed in ourselves and kept our eyes on our long-term objectives. There are two things I learnt the hard way in my career: never give up no matter how daunting challenges may be, and don’t be afraid to think out of the box and take bold decisions.

On the same note, what was the boldest decision you took in the business?

The boldest decision I took recently was when a friend said his company would purchase whatever processed silica quartz quantities we could supply locally. There was no agreement between us, only an email. I decided to take the chance and built a processing plant near the mine we operated specifically for this purpose, which was a considerable investment. Sadly, before we completed the plant, my friend passed away. I decided to continue with the project because I knew my friend’s company would honour the agreement, which they did.

As a leader, how do you balance the often-competing priorities of managing day-to-day operational challenges and keeping an eye on the future?

Sometimes it is not easy to focus on my vision for the company when I am involved with the day-to-day operations. My wife and two sons, who are also directors of the company help me with this. We take time to discuss everyday issues, find solutions for problems that need immediate attention. We also plan the future together and track progress so that we are constantly striving forward. We all share the same vision for the company, so the decision-making process is very effective.

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