Royal Ceramics Lanka Ltd (Rocell) is planning a major network expansion drive in the next financial year. Fifteen new showrooms will be opened islandwide, while plans are afoot to branch into India to capitalise on the growing economy there.
“The possibility of opening up Rocell showrooms in South India and identifying a suitable local partner is being explored,” commented Nimal Perera, Managing Director, Rocell. Perera said this strategic move intends to create a strong regional presence and capitalise on growth opportunities. “A strong export operation is necessary for future expansion plans, to absorb excess production from the Sri Lankan market” he explained. Hitherto, export earnings have remained approximately 7% of the total earnings, according to the Rocell annual report 2006-2007.
The company plans to build two new production plants in Eheliyagoda and Kiriwattuduwa, with an investment of LKR 123 billion. Another LKR1.2 billion will be invested in Rocell Bathware Ltd., a fully owned subsidiary.
The annual report quotes a turnover of LKR 2.6 billion for the financial year ending March 31, a 34% growth over the previous year. Export turnover posted LKR170 million, while gross profit achieved a remarkable growth of 33% through a 34% increase in sales.