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| Sunday, 2 May 2004 |
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Dankotuwa Porcelain popular worldwide by Elmo Leonard Dankotuwa Porcelain Ltd, Dankotuwa, celebrated 20 years in existence last week, amidst claims of having evolved into one of the best known brand names in porcelainware, worldwide. In the mid-1980s the company was on the verge of closing down, its chairman and managing director, Sunil G. Wijesinghe, conceded last week at a dinner to felicitate the company's buyers and well-wishers. Two years ago, the company had no orders. But now, the company had a demand from all over the world. "However, now, using up-to-date digital technology, it is quick to respond, to changes in trend design, ahead of its worldwide competitors. The company produces goods, six to eight months before orders are given out, Wijesinghe said. Initially, the company turned out porcelainware under other brand names. Today, while no longer being a utility tableware manufacturer, Dankotuwa porcelainware was recognised as a brand, Wijesinghe said. During year 2003, DPL ran at 100 percent production capacity, with over 80 percent of production exported. The whole DPL team had striven to "combat and conquer world markets" most often with the company's own products, Wijesinghe said. The company's CAO, Kithsiri Wijesundera, said that Elan had become its flagship brand, accounting for nearly 26 percent of total sales. Previously, the company was known as a manufacturer, obtaining major profits from stores such as Marcy's, Crate and Barrell. Wijesinghe said that last year the company could not meet the increased local demand following the onrush of tourists and the restaurant industry growing in sophistication. It could not meet the local demand despite imports from China and other countries, flooding the local market. DPL claims it still retains a more sophisticated segment of the local market, of niche customers. The company's strategy to be flexible to world market trends, resulted in more sales, especially to Italy and Spain. Simultaneously, the company's larger retailers in USA, was also showing a resurgence. According to the DPL annual report, its success in Europe and newer and anticipated markets, stimulated it to expand its manufacturing capabilities with the installation of a plethora of new machinery and equipment ranging from very expensive kilns to even small working tables, which would improve productivity and quality while reducing costs. For 2003, the total capital expenditure on machinery installed amounted to LKR 119 million. Another kiln, with ancillary items purchased second hand from Germany at a cost of LKR 207 million is expected to be commissioned here in August. For the year 2003, the company's tax profits dropped to LKR 27.4 million, from LKR 37.4 million during 2002. This was expected, as the company was undergoing transition and it was taking time to realise the effect of the change while the cost of production had also gone up. The directors have announced a first and final report of 10 percent. |
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