Case Studies

YNF Baby : Scaling an Inclusive, Sustainable, and Structured Business and Transforming Lives

Sri Lanka’s Eastern Province, long celebrated for its cultural diversity and resilience, is home to Kattankudy, one of the most densely populated towns in the region. With tightly packed houses, narrow winding lanes, and bustling bazaars, Kattankudy thrives on small, family-run businesses and informal trade networks that keep the town alive well into the evening. In this dynamic environment, YNF Baby, a micro-enterprise specializing in pillows and baby bedding, is quietly transforming household comfort while promoting inclusive business practices, resilience, and innovation. Spearheaded by Ali Althaf Ahamad a young entrepreneur determined to create dignified work and affordable, high-quality products.

Today, YNF Baby produces over 20 varieties of products, ranging from baby mattresses to custom-designed items for people of all ages, with an unwavering commitment to quality that has earned the trust of a growing customer base. Word of mouth has helped build a network of 25 wholesale buyers across diverse communities, including Sinhala, Tamil, and Muslim clients, reflecting the brand’s broad appeal. Althaf regularly sets up stalls at local religious and cultural festivals, not only within Muslim communities but also near temples and churches during festival period, using these informal marketplaces to gain crucial visibility and connect directly with retail customers who may not access online platforms.

Enter Chrysalis FICE: Training and Technological Inputs that Uplift the Overall Business

Althaf joined the FICE (Fostering Inclusive Communities Economies) Project, implemented by Chrysalis in partnership with GIZ and the European Union. Through this initiative, he received comprehensive training in accounting, marketing, and long- term business planning skills that transformed his approach to entrepreneurship.

But it wasn’t just knowledge that made the difference. With Chrysalis’ financial grant, YNF Baby acquired a vacuum packaging machine a game changer! Where previously one pillow filled a unit of space, now three (03) can be vacuum-packed into the same volume. This improvement tripled storage capacity and cut transport costs by more than two-thirds, allowing him to reach more buyers without increasing overheads.

“Earlier, we couldn’t compete with imported products that came vacuum-packed, Now we can match their quality.”

The machine also contributes to sustainability goals. YNF Baby switched from PP polythene (which required 3 kg to pack 100 pillows) to LDPE polythene, which only needs 1 kg for the same quantity. This change cuts plastic usage by over 60%, aligns with circular economy principles, and reduces waste handed over to municipal services.

A Business Shaped by Inclusivity and Adaptability

What distinguishes YNF Baby is its quiet commitment to inclusive employment and a flexible work culture. Most employees are from the local Muslim-majority community, YNF Baby welcomes all who are willing to learn and contribute. The working environment reflects the needs of its people. Some staff choose weekly wages, while others prefer monthly payments. Start times are adjusted for those with household responsibilities.

“They have families, other commitments. I let them choose what works best,”

This flexible system not only improves retention and satisfaction but also allows women and caregivers to take on paid work in ways that fit their home responsibilities, which is an important yet often overlooked support for women’s economic participation in traditional or caregiving- heavy settings.

From Local Producer to Market Innovator

The vacuum machine gave YNF Baby something few local producers have: a technological edge. In the entire Kattankudy area, only this business owns such a machine, creating a clear competitive advantage. Most Sri Lankan manufacturers still don’t use vacuum packaging, putting YNF ahead of the curve in both efficiency and professionalism.

But for Althaf, this is only the foundation for what’s next. He’s developing a new product: a nursing pillow tailored for pregnant and postnatal mothers. This addition not only meets an unmet market need but strengthens the business’s alignment with care-centred, women- focused design.

Meanwhile, Chrysalis FICE helped build a detailed five-year business plan, identifying market gaps and setting the foundation for expansion, certification (including ISO-level standards), and possible new hires. As production scales up, YNF plans to recruit three to four more full time staff. These new positions will create meaningful employment in Kattankudy, providing opportunities for youth and women who have historically had limited access to formal work. By combining innovation, structured planning, and inclusive hiring, YNF Baby has strengthened its operational resilience, broadened its market reach, and established a model of sustainable, community-embedded growth.

“Earlier, I underestimated the contribution of women in the business. Through the FICE project, I realized how their contribution is important especially in the production of baby items that embody softness, care, and quality.”

A Personal Transformation, A Broader Impact on the Nearby Community and Business Landscape

With the support of the FICE project, Althaf’s journey has been as much about personal transformation as business growth. Once focused solely on marketing, he has evolved into a confident entrepreneur who now manages everything from administration and marketing to staff training and development. Today, YNF Baby reflects the values fostered through FICE—inclusion, gender equity, environmental sustainability, and meaningful transformation. It is a business built on flexibility and respect, with space for both innovation and care, firmly rooted in local culture yet ambitiously aligned with national and global standards.

“They gave me not just a machine, but the mindset to build something bigger,” he says, reflecting on his experience with Chrysalis.

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