RCL gearing to set up in Myanmar
View(s):Three firms under businessman and entrepreneur, Dhammika Perera are gearing to band together and venture to Myanmar, industry sources said. Royal Ceramics Lanka PLC (RCL), Lanka Tiles and Alumex PLC are set to do so, according to official sources. “The plan is to ‘bundle’ products in these three firms and set up as one total care product outlet in Myanmar and this is being discussed,” a source told the Business Times. According to him, the plan is to set up wall tiles, floor tiles, aluminium products and bath ware outlet in Myanmar. This is to be established under the RCL Group, he said.
Within the tiles sector, the RCL group manufactures a range of Porcelain and Ceramic tiles which meet international specifications. RCL aims these products to lead the foray into Myanmar, he added. RCL’s subsidiaries are engaged in the production and distribution of bath ware, paints, packaging and plantation sectors while leading finance company, LB Finance PLC and diversified entity, Delmege contribute as associates to RCL Group. Royal Ceramics recorded a top line growth of 9 per cent year on year (YoY) to Rs. 6.82 billion in Q4 FY 16 mainly backed by tiles, bath ware and aluminium sectors. For FY 2016 the group posted 11.3 per cent YoY growth to Rs. 24.9 billion.
The company is investing in facilities to produce larger tile formats and polishing lines which will be in operation by Q4 FY 2017. The sanitary ware sector plans to expand capacity by some 75 per cent towards the end of this FY to cater to the growing local market. They are in the process of adding more showrooms and refurbishing certain existing showrooms. The company plans to open four showrooms in Melbourne and two in Pakistan and Maldives in the near future. Exports contribute only 6 per cent to group sales and faces stiff competition from India and China in the export countries. -(Duruthu)