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Pelwatte targets Asia and Gulf markets with compliance push

12 Sep 2024 - {{hitsCtrl.values.hits}}      

ISO 14001 Management System Certificate presented to Pelwatte Daily Industries Ltd Managing Director Akmal Wickramanayake (left) by DNV representative
PIC BY KITHSIRI DE MEL

By Ishan Sheriffdeen

Pelwatte Dairy Industries, one of Sri Lanka’s leading dairy companies, is preparing to enter major export markets in Asia and the Gulf region, as part of its strategic expansion plan. The company is strengthening this move by adopting global safety, environmental and food safety standards to remain competitive in international markets.

“Maintaining the highest levels of food safety and regulatory compliance further reinforces consumer and business partner confidence,” Pelwatte Managing Director Akmal Wickramanayake told Mirror Business on the sidelines of an event at Sheraton Hotel Colombo yesterday, where the company received three major standards compliance certifications.

Pelwatte secured the ISO 45001 certification for occupational health and safety, ISO 14001 for environmental management and Food Safety System Certification (FSSC) for meeting global food safety standards. These certifications are crucial for Pelwatte’s plans to break into the export market, ensuring the company adheres to the rigorous standards expected by the international customers.

“Though we keep expanding our production and capacity, the local market is not growing at the same pace. So, it is very critical for us to concentrate on the export market and keep moving forward. The local consumers are still struggling with their disposable incomes. Pre-Covid consumption patterns are yet to be seen.

“It might take another one or two years for the local consumer buying patterns to go back to pre-Covid levels,” Wickramanayake noted.

With these certifications in hand, Pelwatte will initially focus on the Asian and Gulf markets, with plans to expand into the European and Western markets within the next two years. However, the company acknowledges that entering these markets will require additional certifications, such as the European Food Safety Certification, British Retail Consortium (BRC) Certification and US Market Certification, which are more complex.

“These certifications are very critical because the global customers expect them as they look for fair practices, fair employment, etc. They want to work with companies and brands that adhere to global standards,” Wickramanayake explained.

To maintain compliance and meet international standards, Pelwatte invests heavily in process upgrades and infrastructure. 

The company spends around Rs.75-100 million annually on automation, process improvements and other necessary upgrades to ensure its operations remain compliant with the global safety and environmental requirements.