Sri Lankan Entrepreneur Oscar De Mel’s dream was to introduce Sri Lanka’s timber king “Teak” to Italy’s multi-million-dollar yacht manufacturing industry. The desire grew to a burning ambition, as he toiled in shipyards working with the internationally preferred trademark “Burma teak” to build super luxury cruise yachts.
After nearly two decades, bringing his best A-game, Oscar de Mel realized his dream, joining a niche group of teak timber exporters to Europe from Sri Lanka. Now, de Mel exports 40 cubic foot teak timber logs in bulk, in 40-foot containers to Italy’s yacht making industry on a regular basis.
De Mel’s biggest issue at present is the devastating Palestine-Israel conflict which makes shipments which use the closest shipping route through the Red Sea unpredictable and unsafe. In addition, shipment costs per 40-foot container has risen astronomically, from Rs. 3 lakhs to Rs. 5 lakhs before the dollar crisis, to Rs. 25 lakhs to Rs. 30 lakhs now, placing a huge burden on the cost of exports. Profits remain modest at present, but de Mel has acquired a few extremely lucrative potential export teak timber markets in Italy and other European countries like Germany and Spain.
Life was a struggle for de Mel in his childhood as he was denied the privilege of being born in a family with financial stability. His introduction to timber and wood work began when he was 14 years old, as he worked shifts after school to assist with his family’s monthly income in his hometown of Moratuwa.His higher education in civil engineering was disrupted after two years and he opted to migrate to Italy in 2000, a land of promise and opportunity for many Sri Lankan youths of Christian faith. In Rome, he spent two years trying to find his feet until he wandered into a yacht manufacturing yard for employment, in retrospect, a game changing turning point in his life.
De Mel recalls a sudden spark of hope and enthusiasm that gripped him as he began working with the Burma teak which would transform the yachts into 600 to 700 bedroomed super luxury liners, furnished with top quality Burma teak furniture and floors. With a rush of adrenaline firing his enthusiasm, he evaluated the possibility of introducing Sri Lanka’s teak as an alternative to Burma teak, which was the internationally reputed choice in teak for yacht making.
A monumental task indeed, but de Mel scored his first victory in 2021. Through sheer perseverance and determination De Mel managed to convince some of Italy’s teak buyers to introduce Sri Lanka teak for the interiors and furniture of Italian yachts. The process was tedious and took nearly five years of convincing, through numerous demonstrations, experiments and continuous flow of information, requiring a tremendous effort from De Mel. He built small wooden boats and other objects displaying his prowess, craftsmanship and knowledge of timber to finally win over Italian teak importers on the superiority of Sri Lanka teak.
De Mel’s breakthrough was largely facilitated by a stint at Italy’s largest yacht manufacturer, who builds approximately 500 yachts each year. He was the only non-Italian worker in the company and had the opportunity of meeting and mingling with top-tier yacht makers and teak importers while employed at Italy’s largest yacht manufacturer.
With a potent mix of grit, determination, craftsmanship and marketing skills, De Mel succeeded in introducing Sri Lanka teak timber to the interiors of Italian super luxury yachts, penetrating the monopoly of Burma teak in the Italian yacht making industry. Of the approximately 123 techniques of sawing timber, De Mel has acquired about 93, a skill that places him right on top of the scale of craftsmanship and on an elevated position in the Italian yacht making industry as a foreigner.
With confirmed orders in hand, De Mel hit another major snag, when he struggled and failed to secure credit to open LCs to export his first shipment of teak as many commercial banks rejected his project proposal. Business began to flourish and his success as an entrepreneur and large-scale teak exporter firmly established, only when he joined hands with Bank of Ceylon’s Export Circle who supported him with working capital, financial advice and business options.
When all other avenues for credit failed, the Export Circle’s ready assistance with working capital, their trust and their encouragement for De Mel with his initial export order was invaluable. The Export Circle’s unwavering support for his teak export business has now placed De Mel as one of BOC’s best and most successful customers. De Mel uses a 100% natural process called the “ quarter zone method ” for treatment of timber, with the wood being resin protected and resistant to seawater.
De Mel has also obtained the required certificates from the European Committee to expand his export markets. While De Mel has six to seven container shipments of 40 cubic foot logs for export in the pipeline at present, expansion plans include a state-of-the-art saw mill and treatment plant, a furniture manufacturing and tile making facility.
Oscar De Mel is a living example of a flourishing entrepreneur who completely relied on the Export Circle on his journey to success and is planning on working with the BOC on his future ventures with confidence.
