RCL to set up a factory in India

Royal Ceramics Lanka Ltd (RCL) says it wants to set up a tile manufacturing factory in India within the next two to three years. “We are looking at the possibility of setting up a factory in India within the next two to three years,” Nimal Perera, Managing Director RCL told The Sunday Times FT.

He said RCL is actively looking at Gujarat for this venture as this state has adequate raw material for tile manufacturing. “We need a partner to set up this factory and currently we are trying to find a good partner. We had discussions with two to three parties and we are still looking,” he added.

Perera said the estimated investment for this venture will be around US$ 50 million and the factory capacity will be at 50,000 square metres per day.

“Since this is a medium term plan, initially we plan to have 10,000 square metres capacity per day. As we go along we want to increase it up to 50,000 square meters per day,” he explained.

He said RCL also has plans to have its own retail outlets by 2010 in India. “We want to have three outlets initially in Chennai, Kerala and Andhra Pradesh,” he said. Perera said the company is presently carrying out feasibility studies in this regard.

He added the company is interested in establishing similar showrooms in Australia in the longer term. RCL’s third quarter net profit surged by 42 percent to Rs.363.14 million and the improved bottomline business was backed by their business expansion.

The company in December 2007 recorded the highest ever monthly turnover in its history with Rs.460 million, resulting in a net profit of nearly Rs.100 million.

RCL has also ventured into setting up a new plant in Kiriwattuduwa in a 33-acre land. This BOI project is expected be commissioned by 2010 with the demand for the expanded output to materialize from local and foreign markets.