Lanka to be Asia's ceramic hub

By Sapumali GALAGODA

Sri Lanka has tremendous potential in the ceramic industry as the country has some of the world’s best raw materials required for the manufacture of ceramics and a trainable work force.

Therefore by enhancing relationships with buyers, who are among some of the top names in the global ceramic industry, we can make Sri Lanka a ceramic hub.

Chairman, Royal Fernwood Porcelain Ltd. (REPL) Ajith Devasurendra said “if we can reduce energy costs, we can increase our market share in the world market. At present over 40 per cent of our cost is spent on energy. In the event the government can reduce the cost of energy or subsidise it at least for exports for about two to three years, until we establish ourselves in the emerging markets, we can increase our market share ten times from the current 0.5 percent to 5 percent and work towards making Sri Lanka a ceramic hub in the Asian region”. He said that in Bangladesh, Thailand, Vietnam and Malaysia, energy costs are subsidised or natural gas is available at much lower cost.

Managing Director, Royal Fernwood Porcelain Ltd, Dr. Jagath Peiris said that Royal Fernwood Porcelain supplies to high end markets to well-known brand names and retail store chains such as Lenox, Crate & Barrel, Pottery Barn of USA, Debhanams, House of Fraser and John Lewis of UK and many other manufacturers and reputed stores in Europe and the USA. The company produces designer products with exclusive designs and shapes, which are only made available to the particular store chain or to the brand.

However, many foreign buyers have allowed export excesses to be sold in our own shops in Sri Lanka and the local customer can buy products at much cheaper prices than what is available in reputed stores around the world.

The company has supplied to top branded dinnerware manufacturers in the global market, which include Royal Doulton, Denby, Portmeirion, Spode, Churchill and many others in Europe. “At present we are trying to enhance our relationship with them, to make Sri Lanka a ceramic hub”, he said.

RFPL has also tied up recently with the Bombay Stores chain which has 19 stores in India. This will help to expand our market share in India. He said that compared to the past, the buying pattern has changed. Most of the large factories are closing in Europe while there is a big domestic market in Sri Lanka. He said that Russia and India have become big buyers of porcelain products while there is a demand from Europe for outsourcing as the big names are closing their centuries old manufacturing plants.

About a year back Browns Investments Ltd., a subsidiary of Brown & Co. Ltd invested in RFPL with the infusion of new capital. Devasurendra said that the excellent product quality and the already established global markets were the main reasons for the investment.

Already $ 2.5 m has been infused while plans are underway to infuse another $ 2.5 m to 3 m to purchase state-of-the-art technology and for market promotions.

At present, the company employs a staff of 546 while plans are under way to outsource hand painting of products. “We are looking at making it a cottage industry so that women can earn while being in their homes”, Devasurendra said.

He said that RFPL is the only company in Sri Lanka with the SLS mark for any kind of Ceramic Dinnerware. Porcelain dinnerwares manufactured by RFPL are free of Lead and Cadmium.

As RFPL supplies to US and EU markets we have to conform to stringent standards.

The major buyers around the globe visit the factory and do random checks.

In the event a porcelain product has Lead or Cadmium it can cause a lot of health issues, said Dr. Peiris.

There are many sub standard products flooding the local market at a cheaper price and some of these products can be harmful to the health of people using them.