Lanka Tiles Explained

Lanka Tiles PLC
Former Name:Lanka Floortiles (1999-2013)
Type:Public
Industry:Capital goods
Hq Location City:Colombo
Hq Location Country:Sri Lanka
Revenue: LKR18.684 billion
Revenue Year:2023
Operating Income: LKR5.298 billion
Income Year:2023
Net Income: LKR3.688 billion
Net Income Year:2023
Assets: LKR18.627 billion
Assets Year:2023
Equity: LKR12.932 billion
Equity Year:2023
Num Employees: 744
Num Employees Year:2023
Parent:Lanka Walltiles PLC (68.217%)
Subsid:Swisstek (Ceylon) PLC (47.80%; Associate company)
Footnotes:[1]

Lanka Tiles PLC, doing business as LANKATILES, is a glazed ceramic and porcelain tile manufacturing company in Sri Lanka. The company was incorporated in 1984 and two years later was listed on the Colombo Stock Exchange. Lanka Tiles was a part of the government-owned Ceylon Ceramics Corporation. In 1991, all but one division of Ceylon Ceramics Corporation was incorporated as Lanka Ceramic Limited. Ceylon Theatres acquired Lanka Ceramic from the government of Sri Lanka. In 2013, Royal Ceramics acquired 80% of the stake in Lanka Ceramic, thus bringing Lanka Tiles under the umbrella of the Vallibel One Group. The company capitalised on an anti-dumping duty imposed by the government of the United States on goods originating in China and started exporting mosaic tiles to the United States. Lanka Tiles was one of the 100 most valuable brands in Sri Lanka in 2022. Due to weakening demand as a result of the prevailing economic crisis in the country, the company restarted its operations in India. Lanka Tiles is also an LMD 100 company in Sri Lanka.

History

Lanka Tiles was incorporated on 30 March 1984.[2] The company was listed on the Colombo Stock Exchange two years later. Lanka Tiles and its present parent Lanka Walltiles were parts of the government-owned Ceylon Ceramics Corporation. In 1987, the company exported 80% of its production.[3] In line with the government policy of privatisation, all but one division of Ceylon Ceramics Corporation incorporated as Lanka Ceramic Limited in 1991.[4] When the government divested its stake in Lanka Ceramic, Ceylon Theatres acquired 65% of the stake.[5] Lanka Tiles was renamed Lanka Floortiles after the acquisition.[6]

Workers of the company launched a strike action in August 2010, demanding a pay increase. The strike action was resolved after 19 days following successful salary negotiations with the trade union.[7] 450 workers out of a 580-cadre strike again in 2011. The workers agreed to abide by the collective agreement.[8] A consortium led by Royal Ceramics acquired 80% of Lanka Tiles's parent Lanka Ceramic in May 2013, bringing Lanka Tiles under the Vallibel One Group.[9] With the acquisition, Royal Ceramics gained a near-monopoly of the Sri Lankan tile market.[10] Lanka Tiles invested LKR200 million to export mosaic tiles to the United States in 2019. The company signed an agreement with the Chinese firm Foshan Shiwan Yulong Ceramic and Benjamin Malloy. The agreement was signed when the United States government imposed an anti-dumping duty on ceramic products of Chinese origin.[11] In the same year, Lanka Tiles expanded its contract manufacturing in India to combat cheap imports from India. A few years earlier, the company signed an agreement with Ambani Vitrified to manufacture glazed vitrified tiles.[12]

Operations

Lanka Tiles is included in the 2022 100 most valuable brand index in Sri Lanka. The company ranked 48th, rising by ten ranking positions from the previous year.[13] [14] Even though the government imposed an import ban on tiles, Lanka Tiles is facing rising raw material, machinery costs and weakening demand due to the prevailing economic crisis.[15] Lanka Tiles restarted its tile manufacturing operations in India and also planning on opening a distribution channel. Despite the company ramping up production, the company came to realise its demand was falling in Sri Lanka and inventories were building up.[16]

Ranking

Lanka Tiles was one of the LMD 100 companies in Sri Lanka. Lanka Tiles is ranked 68th in the 2022 rankings. LMD 100 lists the quoted companies in Sri Lanka by revenue annually.[17]

See also

External links

Notes and References

  1. Web site: Annual Report 2022/23 . cse.lk . Lanka Tiles PLC . 18 June 2023.
  2. News: Lanka Tiles . 18 February 2023 . Moody's International Manual . . 1998 . 7950.
  3. Web site: Tantawy . M. M. Morsi . Ceramic Research Laboratory . . 18 February 2023 . 17 . 6 May 1987.
  4. Web site: Annual Report 1992 . cbsl.gov.lk . . 18 February 2023 . 54 . 1992.
  5. Book: Ganesh . Gopal . Privatisation and Labour Restructuring . 2008 . Academic Foundation . New Delhi . 978-81-7188-634-0 . 92 . 18 February 2023 . en.
  6. Web site: Annual Report 2012/13 . cse.lk . . 18 February 2023 . 2 . 2013.
  7. News: Lanka Tiles factory back in action . 18 February 2023 . . . 5 September 2010.
  8. News: Lanka Tiles employees back at work after stoppage . 18 February 2023 . . Wijeya Newspapers . 6 September 2011.
  9. News: Royal Ceramics acquires 80% of Lanka Ceramic . 18 February 2023 . . Wijeya Newspapers . 6 May 2013.
  10. News: Royal Ceramics gains tile monopoly through Rs.2.9bn acquisition . 18 February 2023 . Daily Mirror . Wijeya Newspapers . 7 May 2013 . PressReader.
  11. News: Lanka Tiles to export porcelain mosaic tiles with Rs. 200 m investment . 18 February 2023 . adaderana.lk . . 16 December 2019.
  12. News: Sri Lanka's Royal Ceramics group expands contract manufacture in India . 18 February 2023 . Economy Next . Echelon Media . 14 June 2019.
  13. News: Lanka Tiles among Top 100 Most Valuable Consumer Brands . 18 February 2023 . . . 22 May 2022.
  14. Web site: Sri Lanka 100 2022 . brandirectory.com . Brand Finance . 18 February 2023 . 12, 15 . 2022.
  15. News: Tile manufacturers worried over maintaining growth momentum amid declining consumer demand . 18 February 2023 . Daily Mirror . Wijeya Newspapers . 10 June 2022.
  16. News: Edirimuni Chandrasekera . Duruthu . Sri Lanka's Lanka Tiles restarts Indian operation . 18 February 2023 . The Sunday Times . Wijeya Newspapers . 8 January 2023.
  17. Web site: LMD 100 . lmd.lk . Media Services . 18 February 2023 . 2022.