Business Times

Dankotuwa eyes domestic market for future growth

Sri Lankan ceramics exporter Dankotuwa Porcelain recently indicated its intention to increase domestic sales, targeting the local hotel, restaurant and catering sectors. An outcome of the company’s recent signing of a "supplementary agreement with the BOI which allows them to exceed 20% of domestic sales in any year provided that the five year average remains at 20%". This follows a disappointing 2009 for Dankotuwa during which it reported a 30% drop in exports and its only bright spot was the retention of domestic sales numbers from the previous year.

According to company Chairman, Sunil Wijesinha, Dankotuwa's drop in exports was mainly attributable to a falling Euro, a repercussion of being dependent on the European market to the tune of 60% of all exports. "With the current low value of the Euro most of our European orders are at a loss, and therefore we have decided to focus more on domestic sales. [When] the Euro came down from Rs 170 we had to drop some low margin customers who refused to give price increases, and struggled hard to get better prices from new designs, and now it is not possible to get further price increases, because Bangladesh which is now producing a similar quality of porcelain has much lower prices, benefiting from low labour and energy costs", Mr. Wijesinha said in a statement issued by the company.

A further area of future concern for the company is GSP+. Dankotuwa says it is "eagerly" awaiting the outcome of GSP+ negotiations with Europe because, without this concession, it expects to lose out even more sales to Bangladesh, a country which enjoys duty free access to Europe, without any conditions, due to it being categorised as a Least Developed Country.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Controversy over costs and revenue of IIFA
BOI funds transfer to Treasury, agreements being reviewed
Asiri Hospitals eyeing Bangladesh
e-Sri Lankans assist in building a unique global chip
Dankotuwa directors meet on Wednesday on liquidation issue
Motorcycle prices soon up by Rs. 6000
ODEL raises capital, expands
Economic lessons from Mahathir
Lessons from the Maldives
Sri Lanka's satellite: Lost in space?
Debating CEPA or destroying the debaters?
South Asia does well in post-financial crisis recovery
DCSL annual profit down 30%, quarterly profit down 49%
Sri Lanka among the safest places in the world - PM
Ampara farmers rejuvenated by rehabilitated irrigation canal
Lankan Minister predicts booming economy for Sri Lanka with north-east contribution
Kilinochchi businessmen limited credit due to lack of collateral
John Keells celebrates World Environment Day
DFCC Bank profits rise
Tax reduction will cause problems to the state
CEOs want HR to demonstrate high enthusiasm for the business
Mahathir Mohamad makes his mark in Sri Lanka
Dankotuwa eyes domestic market for future growth
Ceylon Guardian Group reports Rs.1.6 mln profit
CB's loans more than Rs 3 billion to the North
Sri Lanka Insurance launches door-to-door service
CILT enters the CCC umbrella
CMA panel discussion on “Sustainable Business”
Finlay’s Estates gets Rainforest Certification
CSE responds to SEC on LOLC's stockbroker licence
Drilling starts next year on 3 oil wells
Hemas will see FMCG, leisure and power sectors boost profits
CBSL appoints sovereign rating committee
Struggling real estate, property development to return as key investment avenues
NCE targets US$20 billion in exports by 2020
Full service virtual ad agency launched globally
LOLC profits up as cost of sales falls
ADB provides US$ 212.8 mln for North-East development
‘We believe, We achieve, We win’ - new theme for SLIM
Dialog TV partners Orange Electric for customer education drive
CMA Accounting Summit - Regional Heads meet in Colombo
Derivatives demystified


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution