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[September 2003]
Sri Lankan Tile Company Heads for Major Investment
Colombo's 'Daily News' reported that buoyed by favourable financial results recorded for the year ended 31 March 2003, Royal Ceramics Lanka is in the process of investing Sri Lanka Rs 100 million in just the current year to upgrade the infrastructure, plant, machinery and processes at the manufacturing plants in Eheliyagoda (Royal Ceramics) and Horana (Royal Porcelain). The investment is said to be aimed at producing designs and sizes that would revolutionise the local market.
"Our aim is to provide local customers with reliable and high quality design floors that would be superior to the imports that are currently in the market. We will introduce a complete new range of enhanced floor designs shortly," said Executive Chairman A M Weerasinghe.
In the year to 31 March 2003, the group's gross turnover surpassed Rs 1.06 billion. Mr Weerasinghe said in his annual report: "This is a remarkable milestone in the history of the company. The company's newly launched 'Rocell' brand and the marketing and distribution strategy contributed immensely to this growth".
Group pre-tax profit was reported as Rs 132.2 million, a growth of 72% after charging distribution costs of Rs 119.2 million and finance charges of Rs 59.8 million. The net profit was reported as Rs 89.8 million.
The company is said to have already invested Rs 500 million in the share capital of Royal Porcelain (Pvt) Ltd, thereby complying with the investment criteria laid down by the Board of Investment of Sri Lanka for the granting of a 10-year tax holiday, meaning Royal Porcelain will enjoy a tax holiday and its profits will be exempt from income tax from 2002/2003 to 2011/2012.
ENDS