Dankotuwa Porcelain Explained

Dankotuwa Porcelain PLC
Type:Public
Industry:Porcelain
Hq Location City:Dankotuwa
Hq Location Country:Sri Lanka
Revenue: LKR5.913 billion
Revenue Year:2023
Operating Income: LKR1.168 billion
Income Year:2023
Net Income: LKR679 million
Net Income Year:2023
Assets: LKR6.134 billion
Assets Year:2023
Equity: LKR3.255 billion
Equity Year:2023
Num Employees:1,500
Num Employees Year:2023
Parent:Ceyline Investments (68.19%)
Footnotes:[1]

Dankotuwa Porcelain PLC is a porcelain tableware manufacturing company based in Dankotuwa, Sri Lanka. Dankotuwa Porcelain was incorporated in 1984 as a subsidiary of Ceylon Ceramics Corporation. Dankotuwa Porcelain was one of the four public enterprises that were privatised in December 1990. The company was converted to a public company in 1994 and listed on the Colombo Stock Exchange later in the same year. Environmental Resources Investment (currently known as Ambeon Holdings) acquired the company in 2010 for a consideration of LKR433 million. Dankotuwa Porcelain acquired Royal Fernwood Porcelain from Browns Group in December 2013 for LKR305 million.

Export sales of the company make up 83% of total sales. The company took part in the International Labour Organization's social dialogue programme of work teams. Dankotuwa Porcelain ranked 38th in LMD 100 second board in its 2021/22 edition. In 2021, Dankotowa Porcelain was adjudged as the most loved homeware brand in Sri Lanka by Brand Finance. Ceyline Investments acquired 50.1% of the stake of the company in July 2023 for a consideration of LKR2.3 billion. Subsequently, Ceyline Investments increased its stake to 68.19% through the mandatory offer.

History

Dankotuwa Porcelain was incorporated on 6 January 1984 as a subsidiary of Ceylon Ceramics Corporation. General Treasury and Employees' Trust Fund were the company's other shareholders.[2] The company was one of the four public enterprises that were privatised in December 1990.[3] The investors were a consortium of Japanese companies. The investing company had no experience in porcelain making. As a result, after several years, the investing company did not implement its expansion plans.[4] Dankotuwa Porcelain was converted to a public company in 1994 and listed on the Colombo Stock Exchange later in the year. Dankotuwa Porcelain received an order from The Walt Disney Company to manufacture a special commemorative plate to mark the 100th birthday anniversary of Walt Disney in 2001.[5]

Environmental Resources Investment (today known as Ambeon Holdings) and its subsidiary, Ceylon Leather Products, acquired Dankotuwa Porcelain in 2010 for LKR433 million. The new consortium gained control of 66.67% of the shares at a price of LKR9 per share.[6] The company changed its manufacturing method by adopting building up inventory instead of manufacturing to orders to reduce the delivery time. Dankotuwa Porcelain opened its flagship store in Union Place in 2012.[7] Dankotuwa Porcelain acquired Royal Fernwood Porcelain Ltd in December 2013 for LKR305 million. The acquisition gave Dankotuwa Porcelain control of 76% of Royal Fernwood Porcelain shares, a subsidiary of Browns Group.[8] The company reintroduced Laklain, its legacy brand, to the Sri Lankan market in 2018. Laklain was the first brand introduced by the company in the early 2000s and is known for its floral designs.[9]

Operations

Dankotuwa Porcelain's export sales make up 83% of the total sales. The company took part in the International Labour Organization's social dialogue programme of work teams.[10] The company is ranked 38th in LMD 100's second board for the financial year 2021/22. LMD 100 is an annual list of public companies in Sri Lanka by revenue compiled by the business magazine LMD.[11] Dankotuwa Porcelain was ranked among the 100 most valuable brands in Sri Lanka by Brand Finance in 2018. Brand Finance estimated the brand value of Dankotuwa Porcelain to be LKR153 million.[12] In 2021, the company was adjudged as the most loved homeware brand in Sri Lanka by Brand Finance.[13] Dankotuwa Porcelain won the gold award at the 2020 NCE Export Awards in large-scale manufacturing in the porcelain and ceramics sector. The NCE Export Awards is organised by the National Chamber of Exporters of Sri Lanka.[14] Ceyline Investments, a fully owned subsidiary of Ceyline Holdings, acquired 50.1% of the stake of Dankotuwa Porcelain for LKR2.3 billion in July 2023. Ceyline Holdings is a company engaged in the shipping logistics sector.[15] subsequently, Ceyline Investments increased its stake to 68.19% through mandatory offer. However, the offer did not include the 22.41% stake held by Ambeon Holdings.[16]

See also

Notes and References

  1. Web site: Annual Report 2022/23 . cse.lk . Dankotuwa Porcelain PLC . 24 October 2023.
  2. News: Dankotuwa Porcelain celebrates 28th anniversary with a two-day 28% discount offer . 24 October 2023 . . . 6 January 2012.
  3. Book: Rajcoomar . S. . Karlik . John R. . Martin . M. . Sisson . Charles Adair . Bell . Michael W. . Financial Programming and Policy: The Case of Sri Lanka . 26 May 1996 . International Monetary Fund . 978-1-55775-579-7 . 80 . 24 October 2023 . en.
  4. Book: Ramanadham . V. V. . Privatization and After: Monitoring and Regulation . 7 February 2002 . . 978-1-134-83416-7 . 76 . 24 October 2023 . en.
  5. News: Lankan Porcelain for Walt Disney . 24 October 2023 . Sri Lanka News . 11 . . 2001 . 5 .
  6. News: Wijekoon . Channa Bandara . Dankotuwa Porcelain revives . 24 October 2023 . . . 28 June 2010.
  7. News: Perera . Keishara . Dankotuwa changes manufacturing strategy . 24 October 2023 . . Wijeya Newspapers . 22 June 2012 . .
  8. News: Dankotuwa Porcelain acquires Royal Fernwood . 24 October 2023 . Daily Mirror . Wijeya Newspapers . 6 December 2013 . .
  9. News: Dankotuwa Porcelain re-introduces Laklain locally . 24 October 2023 . . Wijeya Newspapers . 14 October 2018.
  10. Web site: Workplace Co-operation through Work Teams at Dankotuwa Porcelain . ilo.org . . 24 October 2023 . 12 September 2003.
  11. Web site: LMD 100 . lmd100.lk . Media Services . 24 October 2023 . 140 . 2023.
  12. Web site: Sri Lanka 100 2018 . brandirectory.com . Brand Finance . 24 October 2023 . 15 . 2018.
  13. News: Dankotuwa Porcelain “most loved homeware brand” . 24 October 2023 . . . 12 June 2021.
  14. News: Dankotuwa Porcelain wins big at NCE Export Awards 2020 . 24 October 2023 . Daily FT . Wijeya Newspapers . 23 March 2021.
  15. News: Exports-bullish Ceyline Holdings buys control of Dankotuwa Porcelain for Rs. 2.3 b . 24 October 2023 . Daily FT . Wijeya Newspapers . 14 July 2023.
  16. News: Ceyline ups Dankotuwa stake to 68% via mandatory offer . 24 October 2023 . Daily FT . Wijeya Newspapers . 7 September 2023.