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[November 2008]
Sri Lanka Sanitary Ware Market Draws Kohler
Kohler, a US-based sanitary ware firm, plans to penetrate the fast-growing Sri Lankan sanitary ware market by opening a showroom in the capital Colombo, having already won a large order for one of its biggest property projects. "Kohler has identified Sri Lanka as one of the growth markets," Sharad Mathur, managing director, Kohler India, said.
The company has already won an order to supply sanitary ware for 1,000 bathrooms in the first phase of the US$250 million Havelock City apartment and commercial property project in Colombo.
The international sanitary ware brand's entry into the island puts it in direct competition with tile maker Royal Ceramics' sanitary ware subsidiary, Rocell Bathware, which has begun trial production. Rocell Bathware, with an initial capacity of 250,000 pieces of sanitary ware, is the sole local manufacturer competing against up-market imported brands from Europe and East Asia.
Asked about the impact of the 50 percent increase in the import cess on ceramic ware in the government budget last week, Mathur said: "Yes, it does have an impact. We have to live with that."
Kohler is an international sanitary ware brand and one of America's oldest and largest privately held companies, founded in 1873. Kohler decided to enter the Sri Lankan market seeing the high growth in the sanitary ware market, Mathur said. "The booming real estate industry and growing upscale consumer market present a big opportunity for Kohler." Mathur acknowledged that the island's construction boom may have slackened and the looming global recession was likely to affect demand, but noted that business was cyclical. "So it is important for us to build our brand and to start working with interior designers and customers, try to understand consumer needs, and be ready for the next boom," Mathur said. "This is eventually a growth market."
The showroom in Colombo will have a range of kitchen and bath ware products including toilets, lavatories, faucets, bathtubs, whirlpools and showers. Prices range from 5,700 rupees (US$52) for faucets, 47,000 rupees for toilets and 730,000 rupees for high-end bath products, and up to almost 1.5 million rupees for whirlpool baths. Mathur said some hotels in the island had also imported Kohler products. "Our strength lies in providing top of the line products where we're very strong but we also offer mid-market products as well."
ENDS