RCL goes for Rs. 600 m upgrade for old Eheliyagoda plant

Royal Ceramics Plc (RCL) yesterday announced that Rs. 600 million expansion and modernisation of its old plant at Eheliyagoda.

RCL Group operates three factories; one at Eheliyagoda manufacturing porcelain tiles and a factory at Horana manufacturing ceramic tiles whilst sanitary-ware is manufactured at Homagama.

The company said the Rs. 600 million expansion was to increase production in a cost-effective manner to meet market demands. RCL also said it expects that the investment can be recouped in four years.

At present the Eheliyagoda plant produces 3,700 square metres of tiles and following modernisation with new technology and expansion, it will be increased to 4,500 square metres per day.

Last year RCL began a Rs. 3 billion investment to build a third tile factory in Kiriwattuduwa, Homagama. Once completed, the plant will add 12,000 square meters per day to the capacity.

In the financial year ended on 31 March 2012, RCL Group saw gross revenue increase by 21% to Rs. 7.75 billion whilst net figure rising in similar fashion was Rs. 6.9 billion. Tiles sales amounted to Rs. 5.93 billion, up from Rs. 5.1 billion whilst sanitaryware rose to Rs. 897 million from Rs. 595.8 million.

After tax profit rose by 31% to Rs. 2.01 billion in FY12 whilst net profit attributable to equity holders increased by 36% to Rs. 1.95 billion.