Royal Ceramics Lanka expands its factories, with a 1.5 billion rupee investment to meet the growing domestic demand for tiles. The company manufactures and distributes floor and wall tiles under the brand name ‘Rocell’, in 30 showrooms in the island, with ten more to be set up. With a 35% share of the market, the company hopes to increase production with a new tile factory in Homagama, according to Tharana Thoradeniya, Director of RCL and Chief of Rocell Bathware.
Royal Ceramics’ two plants in Eheliyagoda and Horana, has a daily maximum capacity of 12,000 sq.m.. An investment of SLR 500 million to increase capacity by 4,000 sq. m. per day at the Horana factory was made earlier this year. Rocell Bathware, a subsidiary of RCL is planning a new LKR 900 million plant at Panangoda, by April 2008. The bathware will be for the local markets and comparable to European brands.
A 35% year on year growth is expected this financial year, with a turnover forecast of 2.6 billion rupees, Lanka Orix Analysts said with net profits are forecasted at LKR 422.49 million. About 90% of sales are local with the balance exported to 26 countries, mainly India, Australia, Taiwan and Japan.