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| Sunday, 22 June 2003 |
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| News Business Features Editorial
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Lanka Walltile records 64% profit growth Lanka Walltile Limited (LWL) has shown a group profit after tax of Rs. 204.5 million (before minority interest) for the year ended March 31, 2003, a 64 per cent increase over that of 2002. The Group turnover was Rs. 3.2 billion for the current year over the Rs. 2.8 billion of last year, a 16 per cent increase. Group accumulated profits rose from Rs. 372.5 million to Rs. 477.6 million. The company's after tax profit was Rs. 60.1 million as against last year's Rs. 23.2 million, a 159 per cent increase, with the company turnover increasing by 28 per cent from Rs. 548.3 million to Rs. 701.4 million. Additionally, LWL redeemed five million preference shares issued to the National Development Bank at Rs. 10 each on March 31, 2003 and has transferred Rs. 50 million from retained profits to a capital redemption fund. LWL is the only local manufacturer of ceramic wall tiles in Sri Lanka and has been manufacturing and marketing its products in the local and international markets for 26 years. The company is ISO 9001 certified and produces exceptional quality products at both its factories in Balangoda and Meepe. In recent years, LWL has expanded its exports to over 16 countries by specialising in hand moulded and value added products which have found a ready market in the US, Canada, UK and Europe. A new series of hand moulded tiles 'ISOLE' have created an impact in the Canadian and US markets with the company finding it hard pressed at times to meet the demand. 'Huntington Tiles' of the US, has commenced buying wall tiles from the local company. LWL has been assured of large orders in the year ahead, if it maintains the present standards in products and services. LWL has also benefited from Indo-Sri Lanka Free Trade Agreement and has already exported over 45 containers of wall tiles to India. 'Inquiries are increasing rapidly. We have to be cautious about identifying and tying up with distributors as we do not want overlapping and duplication of territories', said a company spokesperson. The Indian market has increasingly accepted the value addition and quality of LWL, and promises to be a lucrative market for the local company. Some of the other countries to which LWL exports are Australia, Singapore, Hong Kong, Bangladesh and the Netherlands. The company markets about 45 per cent of its products in the local market but is finding the maintenance of the local market share increasingly difficult, due to the influx of poor quality and cheap products being imported. LWL has therefore, looked at meeting the threat of cheap imported tiles by offering heavily discounted products at its sales and island-wide dealer network which handles the basic product. The LWL showroom at Nawala called the 'Home Centre' displays a range of ceramic tiles including some of the export products. With the advent of peace, and the opening up of the Northern and Eastern markets for development and reconstruction, the company is confident that it will be able to increase its local market sales, and has already strategised towards this objective. The Directors of LWL are B. Mahadeva (Chairman), C. L. V. Jayatilleke, Tilak de Zoysa, J. A. P. M. Jayasekera, Anthony A. Page, Lankanatha de Silva, T. D. E. Jayanithie and Dr. S. Selliah. |
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