Financial Times

Lanka Tiles commissions press, glazing machine
Floor tile manufacturer Lanka Tiles Ltd., which has been paying out half its profit after tax as dividends in recent years, has just installed a new press and glazing machines as part of a plan to further increase production capacity by 35 percent.

“We are planning a further expansion of capacity this year at a cost of Rs180 million,” said Mahendra Jayasekera, managing director, Lanka Tiles.“This is to increase production by a further 35 percent which is expected to come on stream by March 2006. Lanka Tiles has an idling kiln which we are going to fire under this plan.”

To meet the requirements of higher production, the firm is expanding its pressing and glazing capacity by the introduction of new machines.
It has just commissioned a new, computerized 2,590-tonne press and glazing machine at a cost of Rs 160 million.

“These machinery will help the company increase production by nearly 10 percent to 7,200 square metres per day of tiles,” Jayasekera said. The projected increase in capacity is on top of this.

The company posted a nett profit after tax of Rs158 million last year, up 14 percent compared with the year before. “We expect to post a significant growth in profits this year,” Jayasekera said.

The company, a subsidiary of the Ceylon Theatres group, has invested over Rs 800 million to expand capacity within the last three years which has been largely financed by borrowings.

Back to Business