JAT Holdings is the market leader for wood coating products and one of the country’s top multinational conglomerates. Subsequent to its recent IPO, the company has been hard at work acquiring land and commissioning the building of its new state-of-the-art Research & Development (R&D) facility, using the capital raised. Funding the company’s ambitious R&D efforts is one of the major stated goals for the funds raised at the IPO.

We sat down with Mr. Ajith Bandara, the General Manager for Research and Development at JAT Holdings as he discussed the present progress and future R&D plans of the company.

R&D was a primary stated objective for the funds raised at the IPO. Could you give us a brief overview of R&D at JAT Holdings?

Presently, our R&D operations are modest, focusing largely on value additions to our products and benchmarking competitor products. Our focus on new product development and value engineering of product formulations have been lagging due to a lack of facilities. This is why we decided that a sizable portion of the proceeds from the IPO funds should go towards the commissioning of a new state-of-the-art R&D facility. We understand that, in the future, our strength will come from new product development and this new facility will enable us to devote the necessary resources towards that objective.

What does the new R&D Centre bring to the table?

Our new R&D Centre will consist of units dedicated to Waterborne Wood Coatings, Solvent-borne Wood Coatings, Decorative Coatings, High-Performance Coatings, Reverse Engineering and Microbiology. Decorative coatings include interior and exterior coatings used for aesthetics, while high performance coatings include marine coatings, waterproofing and other coatings that need to be resilient against harsh environments. Through our reverse engineering unit, we will be able to break products down into their parts and study them further with the intention of finding ways to improve. When it comes to coatings, microbiology is something that you normally do not think about, but it is a very important area, especially as we live in a tropical country where fungi and algae can quickly destroy coatings that are not suitably designed to protect against such microbes.

Another main unit which we will be setting up is a unit for polymerization, where we will be able to perform polymerization experiments and develop new resins polymerization techniques. The binder or resin component of a paint or coating is one of the most important elements of our products, as it decides how durable and long-lasting they will be. It is also one of the main cost governing factors of the product formulations. Thus, this unit will give us an edge, as we will be able to develop new techniques that may not be available to the competitors.  

What are the immediate objectives for the new R&D Centre?

Presently, we are working on a two-year plan focused on new product development. We hope to launch these new products and technologies as we go along. Our product development process consists of four stages; understanding the scope of the new product development process, assessing the feasibility of the project both financially and technically, developing the formulation and scaling it up to a level where it is viable and, finally, commercial production and launch to market. The first three steps will involve intense R&D initiatives and activities, while the 4^th one will involve working together with our marketing team to create a saleable product, highlighting the unique advanced technologies and techniques used.

How is the R&D Team Structured? What kind of human/academic/technical resources do you have available?

We are putting together an R&D dream team, which is something we were planning to do a long time ago. Now we have the funds and the facilities to do so. The team will consist of 3 senior scientists, experienced in the areas that we intend to work in. One of these senior scientists will be from Sri Lanka, while the other two will be recruited from overseas. In addition to this core group of researchers, the team will further include at least 7 junior scientists and 7 technicians. Further team members may be added as we progress and, as and when we need specialized expertise, we will also augment the team temporarily, as required. Presently, we are in the recruitment stage and some of the suitable candidates are already being considered, whereas some positions have already been filled.

Has the necessary land been acquired for the facility?

I am pleased to say that the land acquisition deal has been finalized and we are now in possession of the real estate. Presently, we are in the process of doing the initial design work and groundwork, before construction can commence. We expect that the building will commence within the next three to six weeks, provided we do not encounter any delays.  

Will the new R&D Centre help to improve sustainability? What projects are being looked at in the immediate future?

Yes, it most certainly will. One of the amazing things about R&D is that it leads to more efficient, cleaner and simpler ways of doing things, but which lead to superior products. So naturally, through R&D, our products will become more sustainable and environmentally friendly and this will be our main focus. In addition to this, we are planning to implement a VOC (Volatile Organic Compound) reduction plan on a year-to-year basis, while also maintaining a priority substance list for chemicals that require tight control, such as formaldehyde, heavy metals, APEO, etc. Together, these measures, along with the technical developments we anticipate, will help us to engineer more sustainable, more effective and more affordable products for our markets in Sri Lanka and abroad.

Caption: Mr. Ajith Bandara - General Manager for Research and Development, JAT Holdings.