Sri Lankan ceramic company revives its sanitary ware business by outsourcing production to China
Lanka Ceramic, which is a clay mining company affiliated to Sri Lanka’s Royal Ceramics group, has announced that the company has taken steps to revive its sanitary ware business with production outsourced to China.
“The company went back to its roots and revived the pioneering business arm of sanitary ware,” Managing Director Mahendra Jayasekera has reportedly said.
“Further, in order to provide superior quality products into the local market, the company has outsourced production to China to provide deluxe brand sanitary ware,” he has told shareholders in the company’s annual report.
Jayasekera has noted that Lanka Ceramic experienced a downturn during all four quarters of 2018/19 due to work disruptions and restructuring and delays in getting mining licences.
According to reports, Lanka Ceramic’s move to outsource sanitary ware production to China is similar to the initiative of another unit in the group, Lanka Tiles.
Lanka Tiled has outsourced its tile production to Indian companies.
OSL take:
The outsourcing of Sri Lanka’s Lanka Ceramics sanitary wear production to China and tiles to India are indicative of the growth and strength of Sri Lankan companies. Foreign businesses could explore business opportunities in forming partnerships with local manufacturing companies and expand into foreign markets. The many trade agreements as well as trade concessions enjoyed by Sri Lanka would also be beneficial for such a programme.
| Article Code : | VBS/AT/20062019/Z_4 |