Market
The apparel industry in Sri Lanka, one of the
country’s highest foreign-exchange earners for
several decades, has weathered many storms
over the years. Although a plethora of local
companies were involved in the manufacture of
apparel for global brands, few companies have
been able to sustain the momentum, and create
and use opportunities to build an enduring
organisation. Confronted by the elimination of
the Multi Fibre Agreement (MFA) at the end of
2005, many of these companies wilted under
the pressure of dwindling margins and
competition from emerging markets. As the
global apparel-manufacturing market became
more sophisticated, there was a shakedown –
not least in Sri Lanka, where only the preferred
manufacturing partners for large global brands
survived the challenging market forces. MAS is
one such success story.
Apparel manufacturing has evolved through
the years from vendors outsourcing simple cutand-sew operations to working with integratedsolutions providers. MAS embraced the evolving
supplier-vendor relationship, undertaking
functions that were previously the prerogative of
the vendor, allowing the latter to focus their
resources in managing retail brand and
consumer relationships.
As South Asia’s largest intimate-apparel
manufacturer, MAS also happens to be the
region’s fastest-growing supplier of sportswear.
The company manages the entire value chain –
from product design, development,
manufacturing and raw-material supply – whilst
commanding the latest technology and knowhow. With in-house research, design,
development and product-engineering
capabilities, MAS provides sophisticated
concept-to-delivery solutions to its customers.
Design and product development is the new
heart of the business – a sphere in which MAS
excels. In addition to working with vendor
concepts or design briefs to create new product
ranges, MAS also works with vendors to create
new technology and products – often in multiyear efforts that redefine the industry.
Innovation is second nature to MAS. From
working with Victoria’s Secret on fast
replenishment models to lean manufacturing
with rapid product changeovers, the company’s
fully-integrated model allows it to innovate
across the value chain.
Today, MAS is the lead strategic partner for
Victoria’s Secret (VS), servicing numerous global
brands including Marks & Spencer (M&S),
Triumph International, DIM Branded Apparel,
Nike, Speedo, adidas, Reebok, GAP and Banana
Republic. It operates design studios and 28
facilities across five countries with a family of
over 45,000 people.
Achievements
Led by progressive and visionary leader
Deshamanya Mahesh Amalean, MAS pioneered
and perfected the manufacture of lingerie in a
country that specialised in casual wear and
outerwear. From an entrepreneurial venture,
MAS has grown to be a global entity with a
consolidated annual turnover of approximately
US$ 750 million. With an annual growth rate of
15%-20% over the past two decades, MAS is set
to achieve its target of US$ 1 billion revenues
by 2010.
True to its spirit of excelling in every aspect
of the business, MAS has won numerous awards
through its journey, including 5S, All Star,
National Productivity, Export, Software Quality
and HR awards. Last year, MAS won the coveted
Vendor of the Year award from Victoria’s Secret,
the awards for Outstanding Performance and
Innovation from Nike and the award for Most
Innovative Supplier from adidas, while MAS
Intimates was presented with the Award for
Customer Excellence for its implementation of
SAP. MAS was the first in the region to use the
SAP R3 Apparel and Footwear system, and
launched a global SAP consulting firm focusing
entirely on the apparel and footwear industry.
The company has a history of partnering with
vendors in community initiatives, including
piloting the Marks & Start programme to
empower people with disabilities, promoting fair
trade and organic cotton products with
Victoria’s Secret, sustainability education with
GAP, and tsunami reconstruction supported by
customers and well-wishers.
A demonstrated commitment towards
employee well-being, health, safety and working
standards earned MAS the Willis Caroon Risk
Management Award and the Sara Lee Corp
Millionaires Club Award for Health & Safety. It
was felicitated for its dedication to uplifting the
community via the John Bryan Community
Service and National Corporate Social
Responsibility (CSR) awards. Leveraging its best
practices in employee well-being, MAS launched
a unique CSR initiative in 2004, titled MAS
Women Go Beyond. The programme seeks to
empower women employees by supporting
them with training and development to advance
in their careers while successfully balancing their
personal lives. They are recognised and
rewarded for their accomplishments and
developed as role models for others to emulate.
The initiative won the American Apparel &
Footwear Association Award for Excellence in
CSR in 2005. In 2006, INSEAD (France) used it
to model a case study for Strategic CSR in the
apparel industry for its MBA and Advanced
Management programmes. The case study is also
used by the London and Copenhagen Business
Schools and North Carolina State University
(US).
MAS has won international acclaim through
the UN Global Compact for best practices,
embedding human rights in the workplace. It is
currently ranked fourteenth among the Top
Twenty Asian Progressives (World Business) and
fourth among Sri Lanka’s Most Respected
Entities (LMD). Encouraged by the recognition,
MAS continues to work towards positioning Sri
Lanka as the hub for ethical apparel sourcing.
History
In 1986, the founders of MAS Holdings –
brothers Mahesh, Sharad and Ajay Amalean –
invested in a small factory in Ratmalana with 26
sewing machines and 60 employees,
manufacturing synthetic dresses for Limited
Brands Inc., in the US, through Mast Industries,
Inc. (US).
In 1990, Mast Industries entered into a joint
venture, setting up Shadowline in Katunayake.
The next big leap for MAS came in 1992 when
it entered into a joint-venture partnership with
Triumph International (Germany) and Mast
Industries to set up Bodyline in Horana, which
continues to be its single largest plant for
manufacturing bras in the region.
Slimline, which emerged in 1993 as a joint
venture with Mast Industries and Courtaulds
Clothing (UK), a key sourcing arm of M&S, went
on to set benchmarks for excellence in employee
relations and put MAS firmly on the global map.
The first overseas venture for MAS was Linea
Clothing in the Maldives in 1996. Since then, the
group has continued to make strategic
investments overseas with operations spanning
five countries. MAS initiated vertical integration
within the Sri Lankan apparel industry with its
joint venture with Mast Industries and
Charnwood Elastics (UK) to establish
Stretchline, the country’s premier supplier of
elastics, in 1996. Stretchline is now a globally
recognised brand for narrow performance
elastics with a global manufacturing base. A
partnership with Noyon Dentelles of France in
2004 created South Asia’s first lace
manufacturing facility, Noyon Lanka.
Joint-venture partnerships with Prym
Intimates (Germany), Dogi International Fabric
and Textprint SA (Spain) consolidated the
regional supply base for intimate apparel
accessories, warp-knitted fabrics and fabricprinting capabilities. This breadth in the supply
chain has helped position Sri Lanka and the
region as a centre of excellence for intimate
apparel and sportswear. MAS Linea Aqua, a
partnership concern with Speedo International,
is one of the first dedicated swimwear plants in
the region excelling in performance swimwear.
Product
MAS Intimates designs and manufactures nichemarket lingerie for high-street fashion retailers
and brands, while MAS Active supplies leading
brands in competition sportswear. MAS Fabrics,
made up of manufacturing facilities for elastics,
warp-knit fabric, lace, intimate apparel
accessories and moulded bra cups,
complements the Intimates and Active divisions.
Through the integrated business model, MAS
innovates new and exciting solutions from
state-of-the-art silicon-embedding technology
to organic and fair-trade products. Some
innovative products include the Speedo FastSkin
FS-Pro swimsuit which was first worn at the
2004 Olympics and the Nike Revolutionary
Support Bra – the highest-selling sports bra in
the USA – worn by international tennis players
and athletes. In 2007, MAS launched its own
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BUSINESS SUPERBRANDS
intimate apparel brand, Amanté, targeting the
Indian market.
MAS Investments overlooks a diversified
portfolio of investments including the
development of integrated apparel and fabric
parks in the region, retail and outsourced
information-technology services. The divisions
are brought together under a common vision
and corporate governance by MAS Corporate
Solutions.
foundation of partnerships characterised by
trust, the operational excellence of MAS, its
strong raw-material base and an innovative and
futuristic spirit make it the fastest-growing
supplier of niche-market lingerie and
competition sportswear in South Asia. A worldclass Sri Lankan organisation, MAS differentiates
itself through its best practices to position Sri
Lanka as the preferred destination for ethical
apparel solutions.
Recent Developments
www.masholdings.com
Encouraged by consumers’ increasing demands
for ethically manufactured products, MAS
continues to raise the bar on internationally
accepted standards of employee well-being and
social accountability. MAS is building an iconic
eco-manufacturing plant to support the Plan-A
initiative of M&S for sustainable sourcing in the
South Asian region and is implementing MOS
(MAS Operating System), a lean manufacturing
philosophy based on the Toyota Production
System to improve efficiency and deliver faster
turnaround times. This initiative has been highly
successful as it melds well with the MAS culture
of empowerment. Anticipating an imminent shift
in the industry orientation from service to
knowledge, MAS set up the MAS Institute of
Management Technology to function as a centre
of industry knowledge and innovation in liaison
with internationally reputed academics. Having
consolidated its position in Sri Lanka, MAS is
now expanding to India to offer customers the
benefits of a regional supply base through the
development of an integrated apparel and
fabric park.
Promotion
MAS has been regularly featured in the
international press with emphasis on its ethics
and innovative people-management practices.
The list includes the Wall Street Journal, Fortune,
New York Times, Financial Times and World
Business. Driven by a philosophy of sustainability,
the company represents the balance it strives
for in social and environmental spheres
alongside its operational excellence in all
vendor interactions, corporate promotional
material and media. The group reflects a
passionate and competitive spirit balanced by
unmatched commitment towards employee
well-being through all media. Publications of the
real-life stories of its employees have received
rave reviews from its business partners. The
company’s aggressive support of sports at the
organisational and national level has helped
build the MAS persona. One such instance was
in 2005, when MAS signed up as official clothing
sponsor for Sri Lanka Cricket in a symbolic
gesture of national pride and solidarity.
Brand Values
From inception, a progressive management
culture that disregarded traditional employeremployee relations has been the hallmark of
MAS. This culture of respect for all, fair play,
honesty and integrity continue to be the
company’s most distinguishing traits. Built on a
THINGS YOU DIDN’T KNOW ABOUT
MAS HOLDINGS
The acronym comprises the initials of
founding members Mahesh, Ajay and
Sharad.
A handshake sealed the company’s first
deal with Mast Industries. A formal
written contract was drawn up only
several years later.
Ninety-five sportspersons who
represented Sri Lanka in 21 different
sports work at MAS (as at October
2007).
Swimmers from 13 countries competing
in the 2004 Olympics wore Speedo
FastSkin swimsuits manufactured by Linea
Aqua, the company’s dedicated swimwear
plant. Linea Aqua manufactures swimwear
for 17 countries (including Sri Lanka) for
the 2008 Olympics.
A unique feature of the FastSkin swimsuit
is the fabric, which increases water
resistance by replicating the biological
skin characteristics of the shark.
MAS is one of ten companies cited for
best practices among some 4,400
companies worldwide in the UN Global
Compact Annual and Mackenzie Reports
(2007).
BUSINESS SUPERBRANDS
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