Royal Ceramics Lanka PLC (Rocell) is banking on a recovery in the nation’s construction sector but the company’s optimism is tempered by the significant challenges posed by a surge in cheap imports and the absence of anti-dumping legislation.
“The lack of anti-dumping legislation in the country and the dubious practices of under-invoicing result in a loss of potential revenue for the government and create an unequal playing field for local manufacturers,” Royal Ceramic
Chairman Dhammika Perera said in the company’s latest annual report.
The influx of these low-cost imports is exerting significant pressure on local producers, who are also grappling with the escalating production costs from high energy prices, raw material expenses and labour. According to the company, this has created an environment of underutilised capacity, despite the recent major capital investments in technological upgrades and expanded production capabilities by key local players.
In response to these challenges, Royal Ceramics is strategically pivoting towards a robust, export-oriented model.
“It is important to focus on growth of exports as we now have a comprehensive portfolio of tiles, accessories and allied products that is a prerequisite to succeed in a more competitive export market,” Perera emphasised.
The company is actively pursuing growth opportunities in international markets, continuing its exports to established destinations like Australia, the United States and India, while also successfully expanding into new regions such as Africa and the Middle East.
The sanitaryware sector, in particular, will focus on export expansion to mitigate the subdued domestic market and an oversupply of products. The company plans to collaborate with its Italian partners to enhance product quality and diversify its offerings for the international clientele.
Meanwhile, Perera expressed confidence in the construction sector; after contracting by 20.8 percent in 2023, it recorded a positive growth of 19.4 percent in 2024. He anticipates this momentum to continue through 2025, fuelled by the low interest rates, controlled inflation
and improved investor confidence.
Despite this positive domestic outlook, the performance of the company’s core tiles and associated products sector was below the expectations. A key concern is the flood of cheaper imported tiles, particularly from China and India, following the lifting of import restrictions. Royal Ceramic Managing Director Aravinda Perera highlighted a 60 percent increase in tile imports during the year.
On the domestic front, Rocell has launched an affordable product range to compete more effectively with the imported alternatives. This new range involves adjustments to the body formula and glaze to reduce cycle times and make the products more affordable. The company is also innovating by working with renowned Spanish and Italian designers for new tile and bathware collections set to launch next year. (NF)
Source : Daily Mirror
