Sri Lanka’s Lanka Tiles restarts Indian operation
Sri Lankan tile manufacturer, Lanka Tiles PLC has reactivated its Indian mosaic tile manufacturing and aluminium fabrication unit while planning to also start a distribution arm there, a top official said.
Mahendra Jayasekara, Managing Director of the company told the Business Times that reviving its Lanka Tiles India Pvt Ltd to restart exports to beat the tough market conditions in the country have put companies like his into survival mode and the only way to do so in the current context is to diversify and set up abroad.
The company has put up Rs. 6 billion manufacturing facility of 4000 to 6000 square metres of floor tiles per day, which is slated to open somewhere between July to August, but the company is not sure of what to do with this capacity. “We were running our factories at capacity, but suddenly about three to four months ago, we realised that we cannot sell most of our tiles. This is mainly because the market has shrunk with the economic crisis and our stock build up is happening.” Noting that the industry is heading to a crisis, he said that the company will focus on exports as they don’t have any other option.Hence, the company will concentrate on the mosaic and special grid tiles that are quite in demand in the US which are being produced in the Indian factory. He also explained that the US antidumping duties on Chinese imports also helped them in securing this special category of tiles to export to the US. In August of 2018, the US sanctioned 2000 products from China and mosaic tiles were one of those.
Acknowledging that with the increase in interest rates globally, it will be tough for exports as well, Mr Jayasekara pointed out that it is important to select a special product or a niche category to export.
In the current context, exporting a proper product is really important and the company identified the mosaic tile as it was not produced anywhere else in the world except in China and with the duties that were imposed by the US on China, it moved quickly with this product, he added. “We have now converted some of our regular tile manufacturing lines also to mosaic tile manufacturing. That is how we resorted to shift our capacity in favour of a product that could be exported.” Mr. Jayasekara added that the company is exploring certain investments that will increase its product portfolio. “However, then again, we also need to be very careful in this area in this high interest rate and the increasing tax rate scenario. We are evaluating this high interest rate and high increasing tax rate scenario and what products to continue, those we may discontinue and what industries that are competitive for us to be in.”
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!