Sri Lanka’s coconut processing industry is a cornerstone of the nation's economy, renowned for its high-quality products like coconut oil, coir, and cocopeat. Leveraging centuries-old traditions combined with modern innovation, the industry excels in sustainable practices and global exports. With a commitment to quality and environmental stewardship, Sri Lanka continues to lead as a premier source of coconut-based products, meeting growing international demand.
Heshan Devapriya, Director & COO
Coco Labs Global is an accomplished player in this space, led by Gayan Daulagala Founder and Managing Director, Heshan Devapriya, Director and COO, and the female directress Ashani Mendis, with two decades of experience in the cocopeat industry. The firm stands tall amongst the other peers in the market by prioritizing both production and customer services. It focuses 60 percent of its strategy on optimizing output while 40 percent is dedicated to exceptional customer service. Unlike many competitors, the firm doesn’t just deliver its products; it actively engages with its customers by visiting them regularly. These visits allow the firm to assess its progress, compare outcomes with previous experiences, and provide tailored consultation on best practices for using its substrates. This hands-on approach ensures that its customers achieve better results, fostering long-term partnerships and preference for its products.
Coco Labs Global adheres to stringent quality standards, including Good Manufacturing Practices (GMP) and certification for greenhouse gas emissions from Meo Carbon Solutions in Germany. “Coco Labs Global is fully integrated, managing everything from raw material production to final delivery, ensuring seamless service for our esteemed customers globally”, adds Gayan Daulagala Founder and Managing Director.
Coco Labs Global employs a comprehensive and integrated approach to managing its cocopeat supply chain, ensuring efficiency from production to export. As a vertically integrated company, the firm controls every stage of production, which is crucial in an industry where weather conditions can significantly impact operations. A key challenge is drying cocopeat and coco chips to moisture levels below 13 percent, a process competitors struggle with due to limited drying capacity. However, the firm overcomes this with an expansive drying facility spanning over 350,000 square feet, allowing year-round production.
Coco Labs Global strategically sources coconut husks within a 30-kilometer radius of its factory, maintaining an inventory of approximately 2 million husks at any time. To support its suppliers, particularly small-scale collectors, the firm offers micro-loans, enabling them to gather husks from remote villages. This ensures a consistent supply of raw materials and strengthens the relationships with local communities, ultimately contributing to a seamless supply chain.
Navigating Economic Challenges and Positioning for Global Leadership
The global economic climate, particularly Sri Lanka's economic crisis in 2021 and 2022, significantly impacted export businesses. However, the Sri Lankan government and financial institutions provided crucial support to export companies, recognizing the importance of foreign income during this period. Coco Labs Global implements a strategic approach to navigate these challenges. As a fully integrated firm produces raw materials in-house, eliminating the need for third-party profits. This vertical integration allows the firm to maintain low costs and maximize profitability. Additionally, the firm optimizes labor utilization to enhance production efficiency reducing costs. These strategies have enabled the firm to not only withstand the economic crisis but also to continue delivering value to its customers, ensuring the sustainability and success of its operations with its main exporting countries being South Korea, Germany, Netherlands, and Central Asia.
To support its suppliers, particularly small-scale collectors, Coco Labs Global offers micro-loans, enabling them to gather husks from remote villages
Over the next 5–10 years, Coco Labs Global aims to expand its reach to the Southern Hemisphere, allowing year-round supply and balancing seasonal demand fluctuations currently experienced in the Northern Hemisphere. A key long-term goal is to innovate within the cocopeat industry by developing products that require fewer raw materials while maintaining high performance. This approach addresses the challenge of limited coconut harvesting in Sri Lanka. It aligns with its commitment to sustainability and efficient resource utilization, ensuring continued growth and leadership in the industry.
"As a director, I anticipate significant growth in the cocopeat industry over the next decade, driven by emerging global challenges such as the food crisis and urbanization. With agricultural land diminishing, countries must focus on high-density cultivation and controlled environments to boost food production. Greenhouse cultivation, which relies heavily on cocopeat as a substrate, will become increasingly vital. To leverage this trend, we are strategically positioning our company to meet the rising demand for cocopeat, ensuring we remain at the forefront of industry advancements”, concludes Heshan Devapriya, Director and COO.
Gayan Daulagala, Founder & MD, Coco Labs Global
Gayan Daulagala has 20 years of expertise in coir product production, focusing on quality and sustainability.
Heshan Devapriya, Director & COO, Coco Labs Global
Heshan holds a Ph.D. in Agriculture Optimization, an M.Sc. in Financial Risk, and a B.Sc. in Statistics. With 10 years of experience in agriculture sector consultation and strategic development, Heshan specializes in optimizing agricultural practices and managing financial risks, bringing innovative solutions to enhance sector growth and sustainability.
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