Royal Ceramics incorporates new company in Australia

Nimal Perera in Melbourne to sign agreement on Monday

Royal Ceramics Lanka PLC (RCL), a Dhammika Perera controlled company which is a major player in the country’s ceramic tile industry, last week announced that it has incorporated a new company in Australia, Rocell Pty. Ltd., under Australian law to engage in wholesale and retail business in floor tiles and wall tiles as well as bathware in that country.

In a Stock Exchange filing on Friday, RCL said that physical entry into Australia involves a proposed initial investment of AUD 525,000 (Rs. 61.5 million).

Rocell Managing Director Nimal Perera is now in Melbourne finalizing arrangements and an agreement will be signed on Monday, he said. The first showroom will be opened in Melbourne and more in other Australian cities later on.

Perera indicated that they have plans of establishing a physical presence in the Maldives too.

Royal Ceramics has in recent years acquired control of two other successful listed ceramic companies, Lanka Tiles PLC manufacturing floor tiles and Lanka Walltiles who are into wall tiles, acquiring the ceramic sector assets of the CT Holdings (Ceylon Theatres) Group.

The group has also made a major investment in the manufacture of bath and sanitary-ware setting up the country’s first advanced facility for the production of high-end bath and sanitary-ware.

Hayleys which Mr. Dhammika Perera now controls was perhaps the first Sri Lankan company to set up production and marketing facilities overseas. Haycarb which pioneered the production here of activated carbon from coconut shell charcoal has production facilities in Thailand and Indonesia and marketing offices in the US and Australia.

Dipped Products has a factory in Thailand manufacturing medical examination gloves and a major stake in a marketing company in Italy.

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Rocell to boost exports with Rs. 61.5 m Aussie subsidiary

In a bid to boost exports, Royal Ceramics Lanka Plc has set up a fully-owned subsidiary in Australia.
The company said Rocell Ltd. has been incorporated under the laws of Australia to engage in the wholesale and retail business of floor and wall tiles and bathware.
The proposed initial investment in the subsidiary is Australian Dollars 0.5 million or Rs. 61.5 million.
According to Royal Ceramics country’s tile and ceramic exports increased by 5% $ 37.8 million in FY14 from FY 2013. The company registered a growth rate of 7% via exports to countries like the Australia, Maldives and India.
At Group level, which includes Lanka Ceramics Group, Royal Ceramics saw a growth of 214% in exports in FY14 to Rs. 844 million.
The lower export revenue contribution to the group has been mainly due to low priced products from countries like China and India dominating the world market with their economies of scale in the face of global price competition.
Rocell in its FY2014 Annual Report said the company was taking necessary steps to counter these threats and will continue to focus on exports.

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