Lanka Tiles

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 is 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.

Lanka Tiles PLC
FormerlyLanka Floortiles (1999-2013)
TypePublic
CSE: TILE.N0000
ISINLK0114N00005
IndustryCapital goods
FoundedMarch 30, 1984 (1984-03-30)
Headquarters
Colombo
,
Sri Lanka
Key people
  • A. M. Weerasinghe (Chairman)
  • J. A. P. M. Jayasekera (Managing Director)
RevenueIncrease LKR18.684 billion (2023)
Increase LKR5.298 billion (2023)
Decrease LKR3.688 billion (2023)
Total assetsIncrease LKR18.627 billion (2023)
Total equityIncrease LKR12.932 billion (2023)
Number of employees
Increase 744 (2023)
ParentLanka Walltiles PLC (68.217%)
SubsidiariesSwisstek (Ceylon) PLC (47.80%; Associate company)
Websitewww.lankatiles.com
Footnotes / references
[1]

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 is falling in Sri Lanka and inventories are building up.[16] 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

References
  1. "Annual Report 2022/23" (PDF). cse.lk. Lanka Tiles PLC. Retrieved 18 June 2023.
  2. "Lanka Tiles". Moody's International Manual. Moody's Corporation. 1998. p. 7950. Retrieved 18 February 2023.
  3. Tantawy, M. M. Morsi (6 May 1987). "Ceramic Research Laboratory". UNIDO. p. 17. Retrieved 18 February 2023.
  4. "Annual Report 1992" (PDF). cbsl.gov.lk. Central Bank of Sri Lanka. 1992. p. 54. Retrieved 18 February 2023.
  5. Ganesh, Gopal (2008). Privatisation and Labour Restructuring. New Delhi: Academic Foundation. p. 92. ISBN 978-81-7188-634-0. Retrieved 18 February 2023.
  6. "Annual Report 2012/13" (PDF). cse.lk. C T Holdings PLC. 2013. p. 2. Retrieved 18 February 2023.
  7. "Lanka Tiles factory back in action". The Sunday Times. Wijeya Newspapers. 5 September 2010. Retrieved 18 February 2023.
  8. "Lanka Tiles employees back at work after stoppage". Daily FT. Wijeya Newspapers. 6 September 2011. Retrieved 18 February 2023.
  9. "Royal Ceramics acquires 80% of Lanka Ceramic". Daily Mirror. Wijeya Newspapers. 6 May 2013. Retrieved 18 February 2023.
  10. "Royal Ceramics gains tile monopoly through Rs.2.9bn acquisition". Daily Mirror. Wijeya Newspapers. 7 May 2013. Retrieved 18 February 2023 – via PressReader.
  11. "Lanka Tiles to export porcelain mosaic tiles with Rs. 200 m investment". adaderana.lk. Ada Derana. 16 December 2019. Retrieved 18 February 2023.
  12. "Sri Lanka's Royal Ceramics group expands contract manufacture in India". Economy Next. Echelon Media. 14 June 2019. Retrieved 18 February 2023.
  13. "Lanka Tiles among Top 100 Most Valuable Consumer Brands". Sunday Observer. Associated Newspapers of Ceylon Limited. 22 May 2022. Retrieved 18 February 2023.
  14. "Sri Lanka 100 2022" (PDF). brandirectory.com. Brand Finance. 2022. pp. 12, 15. Retrieved 18 February 2023.
  15. "Tile manufacturers worried over maintaining growth momentum amid declining consumer demand". Daily Mirror. Wijeya Newspapers. 10 June 2022. Retrieved 18 February 2023.
  16. Edirimuni Chandrasekera, Duruthu (8 January 2023). "Sri Lanka's Lanka Tiles restarts Indian operation". The Sunday Times. Wijeya Newspapers. Retrieved 18 February 2023.
  17. "LMD 100". lmd.lk. Media Services. 2022. Retrieved 18 February 2023.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.