Lanka Tiles to export porcelain mosaic tiles with Rs. 200 m investment

December, 16, 2019

Lanka Tiles Plc is to invest Rs. 200 million as part of a key strategy to export porcelain mosaic tiles with foreign collaboration.

It has entered into a tripartite agreement with Foshan Shiwan Yulong Ceramic Ltd. of China and Benjamin Malloy of Dallas, Texas in the US for this purpose.

With the technical assistance of Foshan Shiwan Yulong Ceramic Ltd, Lanka Tiles will convert its present idle capacity of 2,000 m2 per day to manufacture porcelain mosaic tiles for export.

Lanka Tiles Managing Director Mahendra Jayasekara said the agreement was signed in the wake of Washington imposing an anti-dumping duty on ceramic and porcelain products of Chinese origin reaching the US.

“This new tariff regime has created opportunities for other manufacturers of similar products to increase exports to the US,” he added.

Lanka Tiles envisages around Rs. 100 million in sales revenue for the company within the next two-three years from the sale of porcelain mosaic tiles in both the export and local markets.

“Under the agreement, shipping will start by April 2020. Further, the agreement is based on standard commercial terms that apply to similar arrangements where technical and sales support is extended by a third party,” Jayasekara added.

In the company’s FY18/19 Annual Report, Lanka Tiles Chairman Dhammika Perera had stressed the need to look beyond the domestic market as capacity enhancement coincided with a contraction in the domestic construction industry.

“Currently exports amount to a mere 3% of our total sales and in order to grow we need to grow our presence in established markets and also focus on developing new markets. Trade tensions between China and the US, together with bilateral trade agreements, may create opportunities that need to be seized. Encouragingly, we have observed renewed interest from these markets and we are working to convert these leads into tangible orders,” he added.

In the first six months ended 30 September 2019, the Lanka Tiles Group’s export sales amounted to Rs. 64.6 million, down from Rs. 128 million a year ago. In FY18/19, its exports were Rs. 218 million, up by 26% from the previous year. It exports to over 20 markets. Local sales were Rs. 3.3 billion, unchanged as in the first half of FY18/19. Its overall production capacity is 14,500 m2.

Last year Lanka Tiles invested Rs. 2.2 billion in enhancing its production capacity with the ability to manufacture a wider range of tiles in terms of design and size.

“With this capacity enhancement, we have become the single largest tile manufacturing facility in the county and are geared to be on top of evolving global trends. We will continue to grow our contract manufacturing capabilities in India as we have identified this as a key area for potential growth while combating the intense competition coming from low-priced imports,” noted Perera in the Chairman’s Review of Lanka Tiles’ FY19 Annual Report.

Reflecting the weak demand and decrease in productivity due to trial runs for new designs and sizes, Lanka Tile’s profit after-tax for the year ended 31 March 2019 amounted to Rs. 528 million, reporting a decline of 47%. The company had to shut down the old kiln during the year to install a new kiln with larger capacity and this too had an adverse impact on productivity. Growth of 14% in revenue to Rs. 7 billion was achieved mainly through volume growth, which exerted pressure on margins. Finance costs increased by 1.4% as capital expenditure was funded by debt, further impacting the bottom line. In the long term, this trend is expected to reverse as loans get repaid, supporting bottom line growth.

On a more positive note, Lanka Tiles asset base grew by 36% to reach Rs. 11,906 million as its gears up for growth through new product and market developments.

Video Story

A Crisis If Economy Does Not Grow – Sujeewa Mudalige & Talal RafiLiberal Handling of Market Will Continue | Duminda HulangamuwaTax exemptions have not served very well for SL - IMF's Peter Breuer ‘At Hydepark’SL tourism to showcase a new era of growth at WTM 2024 in LondonExclusive Interview with Dr. Nandalal Weerasinghe at Ada Derana Hyde ParkThe Nightly Business Report |17th May 2024The Nightly Business Report | 15th May 2024The Nightly Business Report | 13th May 2024The Nightly Business Report | 07 May 2024The Nightly Business Report | 30th April 2024The Nightly Business Report | 29th April 2024The Nightly Business Report | 26th April 2024The Nightly Business Report | 25th April 2024The Nightly Business Report | 22nd April 2024The Nightly Business Report | 19th April 2024The Nightly Business Report | 17th April 2024The Nightly Business Report | 16th April 2024The Nightly Business Report | 15th April 2024RICH MUST PAY MORE TAXES, IMF’S PETER BREUER & SARWAT JAHAN ‘AT HYDEPARK WITH INDEEWARI AMUWATTE’2024 Will Have More Positivity – CBSL Governor Dr. Nandalal Weerasinghe ‘@ HYDEPARKBudget 2024 - Dr. Roshan PereraWhat's happening to tourism ?SALIYA PIERIS & NALAKA GUNAWARDENE ON SL ONLINE SAFETY BILL - 'AT HYDEPARK WITH INDEEWARI AMUWATTE’Ravi Abeysuriya and Deshan Pushparajah join Indeewari Amuwatte 'At HydePark' on Ada Derana 24Former IMF-ICD director Dr. Sharmini Coorey joins Indeewari Amuwatte 'at HYDEPARK' on Ada Derana 24Dr. Priyanga Dunusinghe and Dr. Nadeem Ul Haque join Indeewari Amuwatte At HydeParkHEAD OF SOE RESTRUCTURING UNIT SURESH SHAH JOINS INDEEWARI AMUWATTE 'AT HYDEPARK' ON ADA DERANA 24Sri Lanka: Supporting Recovery and Promoting Stable & Inclusive GrowthCBSL Governor is confident that Sri Lanka will be able to achieve debt sustainability even before the timeframe envisaged through the IMF EFF programmeCSE had a bullish start for the week but later drop in prices capped early gains of the dayForeign Investors resulted a net foreign inflow of LKR 230 millionCSE continued to move upward ahead of monetary policy review meetingCSE records downward trend for second consecutive dayThe current tax policy is a rescue operation - PresidentCSE managed to secure its bull run for 2nd consecutive session in the weekCSE’s ASPI records massive gain - 20.02.2022Sri Lanka Stock Market 13.02.2023Sri Lanka Stock Market 10.02.2023Sri Lanka Stock Market 08.02.2023Sri Lanka Stock Market 03.02.2023Sri Lanka Stock Market 02.02.2023Govt needs to have a policy framework to bring about the necessary change - Ranjit PageSri Lanka Stock Market 26.01.2023Sri Lanka Stock Market 24.01.2023Sri Lanka Stock Market 20.01.2023Sri Lanka Stock Market 18.01.2023Sri Lanka Stock Market 13.01.2023Sri Lanka Stock Market 12.01.2023Alternative solutions for Sri Lanka's economic recovery - Dr. Howard Nicholas, EconomistSri Lanka Stock Market 10. 01. 2023Sri Lanka Stock Market 09.01.2023Sri Lanka Stock Market 04.01.2023Sri Lanka Stock Market 03.01.2023IMF bailout package can be approved by the global lender in January 2023 by which time Sri Lanka would have secured creditor assurances from countries including India and China – CBSL GovernorADA DERANA POST-BUDGET DISCUSSION ON 'RECOVERING FROM CRISIS, REGAINING STABILITY'CSE Chairman says they expect to introduce a host of new financial instruments to the Colombo Bourse by mid-2023Sri Lanka’s Turnaround Strategies and the Role of the International CommunityPresident Ranil addresses Sri Lankan diaspora in UKUSAID ADMINISTRATOR SAMANTHA POWER WITH INDEEWARI AMUWATTE AT HYDEPARK ON ADA DERANA 24PETROLEUM ENGINEER SALIYA WICKRAMASURIYA JOINS INDEEWARI AMUWATTE AT HYDEPARK ON ADA DERANA 24US Ambassador to Sri Lanka Julie Chung Joins Indeewari Amuwatte at Hydepark on Ada Derana 24Press Conference on Current Economic SituationSri Lanka may take weeks to hire debt advisers, Sabry saysExpert Panel of Industrialists Join Indeewari Amuwatte @HydeparkExperts Discuss How to Best Address Sri Lanka’s Economic Situation with Indeewari Amuwatte @HYDEPARK@Hyde Park with Indeewari Amuwatta | Srimathi ShivashankarHow can Sri Lanka reset and revive its economy while finding solutions to address a health crisis?CBSL Governor Ajith Nivard Cabraal Joins Indeewari Amuwatte @HYDEPARKU.S. Ambassador to Sri Lanka Alaina B. Teplitz says that Sri Lanka should choose its partners based on openness, transparency and true investments rather than loans.We're not taking anything away from investors - SEC ChairmanEconomic Freedom of Sri LankaCSE Chairman Dumith Fernando Joins Indeewari Amuwatte @Hydepark on Ada Derana 24Inaugural speech by His Excellency President Gotabaya Rajapaksa at Sri Lanka Economic Summit 2020US SEC. of State Mike Pompeo Joins Indeewari Amuwatte @Hydepark on Ada Derana 24Foreign Secretary Joins Indeewari Amuwatte @HYDEPARK on Ada Derana 24GET REAL - Senior Deputy Governor of the Central Bank of Sri Lanka Dr. Nandalal WeerasingheMAS joins global efforts to contain spread of COVID-19Preventing Disruptions to Economic Activity amidst the Spread of the COVID-19 PandemicDUMITH FERNANDO JOINS INDEEWARI AMUWATTE @HYDEPARK ON ADA DERANA 24FORMER CBSL GOVERNOR AJITH NIVARD CABRAAL JOINS INDEEWARI AMUWATTE @HYDEPARK ON ADA DERANA 24BE BOLD! DR. MARK MOBIUS TELLS SRI LANKASri Lanka urgently needs a nation branding strategy that will help the island nation be a game-changer - Dr. Udaya IndrarathnaLotus Tower officially declared openAgreement signed to develop East container terminal at Colombo PortUpdate from Washington: US Foreign Policy towards China and South Asia and what it means for Sri LankaEaster Day attacks are a blow in the economy at large, not just tourism industryILO Launches Report on the Future of Work in Sri LankaMacroeconomic Impact of the Budget 2019Fiscal Impact of the Budget 2019Harry Jayawardena @ KPMG's post Budget ForumDissecting Budget 2019Sri Lanka Economic Association – Annual Sessions 2018Land reclamation for Port City completedSri Lanka Targeting 3 Million Tourists in 2019Susantha Ratnayake bids farewell to JKH, Balendra junior in as ChairmanThe economy cannot operate isolation - PallewattaDo we have the money to pay our obligations coming due next year? Answer is yes.CBSL Governor Dr. Indrajit Coomaraswamy, addressing 22nd Annual General Meeting of the ACGMr. Ranjit Page addressing the 2nd Annual General Meeting of the Sri Lanka Retailers’ AssociationCentral Bank issues a new series of coinsUS$ 184 million spent to defend Rupee - CBSL GovernorSri Lanka PM Ranil ‘Concerned on rebalancing of the Global Order’ at World Economic Forum on ASEANSri Lanka Economic Summit 2018 - Keynote Address Mr. Arun M Kumar - Chairman and CEO, KPMG IndiaSL at risk of exchange rate crisis - NomuraSumal Perera suggests Dhammika Perera should be the Next Presidential Candidate at Fireside ChatSL's IT/BPM Marks $1.2 Bn in Revenue - EDBContent creators can now monetize via YouTube in Sri Lanka!There are about 20 other reports like of the bond scam - Auditor GeneralA rapid development in coming 18 months - PMEconomic growth cannot be achieved with a small marketSL Rupee should be allowed to float – IMFSri Lanka highly important in terms of business in South Asia - Petri PeltonenSri Lanka blessed with rich natural resources we can only dream about - Harri KämäräinenGovt planning new national economic strategy – Prof. Lalith SamarakoonSri Lanka rupee hits record lowMonetary Board decides to reduce SLFR by 25 bpsEU delegation highlights need for further progress on human rightsTourism Minister requests diplomats to invite countrymen to visit SLSri Lanka statistics office withdraws GDP dataJapan-Sri Lanka Business Forum held under President's patronageEvening with a Corporate Leader : Mr Dhammika PereraThere is scarcity of talent - Kathy Tingate, Director HR, Microsoft Asia PacificGas cylinder prices to be increased?Budget Openness: Sri Lanka Needs Higher StandardsStock Market continues strong start to the year with the second listing of 2018United States GSP program expires on Dec 31President to request Russia to withdraw tea banJAT Holdings could go public in SingaporeLVL Energy Fund announces Rs. 1.2 billion IPO to fund its strategic growth and expansionWe still haven't found all the dead bodies - PMA budget office to be established in parliament by the end of 2018 - Minister EranWe have a serious concern about debt distress – CBSL GovernorPetroleum Minister Arjuna Ranatunga explains cause for fuel shortageAnika Wijesuriya has fled country due to threats - AG's DeptSri Lanka and Finland to ink agreement on digitalizationMorison PLC unveiled to mark new eraDSL Enterprises joins with Little Hearts social welfare projectPM inaugurates largest naval vessel to be produced in SLAG's dept grills PTL legal officers over litigation errorPresident declares open star class hotel in Nuwara EliyaFormer CB Governor questioned on Greek bond investmentsNew Inland Revenue Bill to be tabled on FridayRevelations at treasury bond commission by former EPF SuperintendentBOI should be closed down - Justice MinisterAloysius asked to hand over personal electronic devices to bond commissionSri Lanka Customs launches online payment platform for declarationsSri Lanka’s tallest building gets shaky from the startBeneficiaries of EPF will have to pay taxes - BandulaWe need an export oriented economy - PMRavi Karunanayake on why he switched from finance to foreign affairsSL looking to import fabric to meet new demand due to GSP+ - Felix Fernando18% duty on fish exports to be lifted under GSP+GSP+ is granted to encourage govt. towards reforms - Tung-Lai MargueNew tax revenue proposal to increase government coffers - RaviDHL is committed to enhancing its investments in SLHambantota port deal is a major plus, will benefit country - CB GovernorDerana launches Derana SME Club with IDBWe will bring in new legislation – PMSL’s first A320 touches down at BIAAll securities issued by the government are absolutely safe – CB GovernorSri Lanka spending Rs 35 billion to import milk powder - HarshaGoogle internet balloon plan hits a legal snag - HarinLAUGFS Creates History at HambantotaFinance Minister calls CB Governor a hospital attendant - VIDEOEPF can buy over all companies in Sri Lanka, says Premier – VIDEOHandunnetti questions how Perpetual Treasuries gained heavenly wisdom – VIDEOLondon Stock Exchange Group opens new technology facility in Sri Lanka - VIDEO
The requested content cannot be found
A Crisis If Economy Does Not Grow – Sujeewa Mudalige & Talal Rafi

Stock Market

Exchange Rates