Royal Ceramics to open outlets in the US

http://www.srilankamirror.com/news/item/10018-royal-ceramics-to-open-outlets-in-the-us
Royal Ceramics Lanka PLC is to venture into the US and will open 15 outlets there soon, officials said.

The company planned to do this through the purchase of a defunct firm in a related business which has outlets in 15 locations in the US, they said. The company is also venturing into export markets which accounts for a mere 6 per cent of top line, in order to create a market for excess stocks during a slowdown in domestic demand, they added further. Royal Ceramics is already operating in Australia and has a joint venture in Pakistan.

The Royal Ceramics Group top line for Q3 FY 16 grew 11.1 per cent year on year (YoY) to Rs. 7.04 billion driven by higher demand from tiles, sanitaryware, packing and aluminum sectors, its quarterly accounts showed. The tiles sector made up nearly 71per cent of the group’s top line registering a 13.7per cent growth YoY during the quarter with demand from both residential and commercial sector being witnessed, analysts said.

As a result of the efforts of the cost reduction committee and energy cost savings, margins have increased. Furthermore, associate profits (mainly LB Finance) have strengthened group bottom line and Royal Ceramics saw a gross profit margin of 40.99 per cent for the Q3.
(Sunday Times)

Thanx... Rana

This is why a country should allow Monopoly. Dammika Perera created a monopoly in Tiles and Aluminum. Some traders of Pettah don't like that. So the team who believe themselves as businessmen were arguing the possibility of crushing Monopolies.

Economist of many countries believe that crushing monopoly is good.

Ben Barnanke in his book courage to act, also discuss about Monopolies in a balanced manner. He too argue that monopolies get the advantage of economies of scale and that is good for everyone. Since they get big profits they get the ability to spend heavily on research . That is good for human race as today's innovation are not individually done as in 1700s but collectively within companies.


This is the path of Japan, South Korea and China. First developed manufacturing sector within closed doors. Then got into the international market while keeping the door closed for imports. That's unfair. And GATT /WTO intervened. They created EXIM banks and re discounted through central banks.

Good path ahead for Sri Lankan tile manufacturers.. All the best tile sector and RCL.

http://forum.lankaninvestor.com/t5961-crushing-crony-capitalist-monopolies?highlight=crushing+crony