18 June 2019 12:00 am
Sri Lanka’s largest tile and bathware manufacturing group, Royal Ceramics Lanka PLC, believes that the trade war between the US and China will increase opportunities for Sri Lankan manufacturers in key export markets.
“We believe that the escalating trade tensions between the US and China will provide opportunities for Sri Lankan manufacturers and we are gearing ourselves to become positioned as a viable alternative manufacturing destination,” Royal Ceramic Chairman Dhammika Perera said in the group’s FY19 annual report.
He also said given the subdued performance of the local market, Royal Ceramics has focused on increasing its export sales.
Perera further revealed that Royal Ceramics was able to sign a contract to manufacture bathware under licence to a globally renowned bathware brand, though he withheld the name of the global brand to the shareholders.
“Signing of a key contract to manufacture bathware under licence to a globally renowned bathware brand marks a key milestone in our history as the process of obtaining the necessary approvals through a comprehensive due diligence exercise affirmed that we had world-class manufacturing facilities and robust processes.
Having completed the lengthy process, we are now looking to reap the benefits of this in the year that has commenced and have already commenced the shipment of an order at the time of writing,” he said.
Royal Ceramics exports to 13 markets, including North America, Europe, India and Australia.
The group has 15 factory outlets, up from 10 in the last financial year and the capital expenditure for FY19 stood at Rs.4 billion, up from Rs.3.6 billion a year ago.
The earnings of Royal Ceramics in FY19 fell 9 percent to Rs.2.6 billion, on a revenue of Rs.31.5 billion, up 8 percent from a year ago.