SL’s ceramics industry: Innovate to survive

The 36 million dollar ceramics industry of Sri Lanka, which accounts for less than one percent of the global share, must innovate to advanced ceramic categories like functional products in the electrical and magnetic ceramics businesses or

structural ceramics like composites and monoliths or even to bio ceramics applications like artificial knee caps if the industry wants to survive in the future, said marketing professional Rohantha Athukorala.

He was addressing the ‘Ceramics Symposium 2011’ staged at the Taj Samudra themed ‘Breaking through Traditions’.

Invited by the ceramics council to speak on the topic ‘Differentiation for Competitive Advantage,’ Athukorala queried how one could recommend a clear strategy when the industry was in the red in its global business segment due to the high cost of energy (primarily gas) that accounts for almost 20-45 per cent of the cost and fighting the price-savvy products coming in from China. Hence, he asserted that the only practical option was to innovate and target a new set of customers.

The ceramics industry consists of tableware, ornamental art ware and the traditional tile business, with the latter doing well in the domestic market. The global businesses is challenged by the recent global recession, resulting in consumers cutting spending, especially in markets like US that account for almost six million dollars of business for the Sri Lankan industry.

Athukorala said that if Sri Lanka could move from competing in the decorative segments in which currently operates to the advanced ceramics business, a B2B model of business could be used where Sri Lanka could become very competitive with the use of new technologies such as nanotechnology.

“But for this, the industry must be united so that a common call can get the attention of policymakers. If not, the fragmented share of voice only creates confusion,” he asserted.

Sharing details on how the tea industry came together in the recent past under a strong ministerial direction, the speaker shared details on how – despite fragmentation – the industry had in unison launched a common national strategy with strong policy support from the Government.

“The ceramics industry must pick up some of these vibes,” said Athukorala, who serves many national committees on policy.

The ceramics industry got a boost recently when one of India’s richest households, the Ambanis, decided to purchase 25,000 pieces of crockery, including 22 carat gold platinum trimmed porcelain, for their south Mumbai mansion.

“This means that Sri Lanka’s quality standards are world accepted, indicating the talent of the workforce,” commented Athukorala.

“However, unless the industry develops a new business model, we cannot remain competitive,” cautioned the speaker.