Lanka Walltiles remodelling, re-pricing to meet challenges
Lanka Tiles PLC (LTL), the pioneer floor tiles manufacturer in the country, is remodelling its business and re-pricing the products in a bid to face economic challenges and a downturn.
LTL as the biggest manufacture of tiles will be sacrificing margins in place of bigger volumes which they believe is the way to go forward. The present challenges aren’t easy to overcome, Mahendra Jayasekera Managing Director of Lanka Tiles, says. “We are definitely aspiring to make more money than what we made in FY 18/19 which was 50 per cent lower than the previous year, but our main challenge now is to sell the entire production and get back to that level of profitability,” he told the Business Times in an interview.
Mr. Mahendra Jayasekera
The drop in profitability was mainly due to scaling down production at the floor tile plant to pave the way for installation of a new line that will bring in 35 per cent more production capacity this year. “So in a sluggish economy we are faced with a challenging task of selling 35 per cent more volumes,” Mr. Jayasekera added. The group will be strengthening its channels of distribution by adding more showrooms, factory outlets, dealers and distributors whilst also intensifying merchandising and sampling.
There will be many measures taken this year to bring the customer closer to the product by adding value to space between customer’s purchase and the product installation which other competitors will hardly be able to match, according to Mr. Jayasekera.
LTL’s Indian operation started in 2017 is doing well so much so that the group imported substantial volume from India to drive 20 per cent turnover growth in FY18/19. The group has ambitions to export to the US, Canada and Australia out of India too. Lanka Tiles entered into strategic partnerships with seven Indian tile manufacturers during 18/19.
“With the existing cost base in Sri Lanka, it isn’t possible to reach the global market. We are positioning Lanka Tiles as a global manufacturer, global brand and a global player. This is one reason why we went to India. Our customers need to appreciate the fact that Lanka Tiles is a global brand and we assure a quality product at an affordable price. The range of products we offer under Lanka Tiles brand will be unmatched this year. We aim to leverage the Indian operation for global exports and the future. We don’t wish to remain a local player anymore which we have been for many years and we need to end it,” Mr. Jayasekara added.