Rocell to boost exports with Rs. 61.5 m Aussie subsidiary
Monday, 10 November 2014 00:16
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In a bid to boost exports, Royal Ceramics Lanka Plc has set up a fully-owned subsidiary in Australia.
The company said Rocell Ltd. has been incorporated under the laws of Australia to engage in the wholesale and retail business of floor and wall tiles and bathware.
The proposed initial investment in the subsidiary is Australian Dollars 0.5 million or Rs. 61.5 million.
According to Royal Ceramics country’s tile and ceramic exports increased by 5% $ 37.8 million in FY14 from FY 2013. The company registered a growth rate of 7% via exports to countries like the Australia, Maldives and India.
At Group level, which includes Lanka Ceramics Group, Royal Ceramics saw a growth of 214% in exports in FY14 to Rs. 844 million.
The lower export revenue contribution to the group has been mainly due to low priced products from countries like China and India dominating the world market with their economies of scale in the face of global price competition.
Rocell in its FY2014 Annual Report said the company was taking necessary steps to counter these threats and will continue to focus on exports.
