Strategic & financial analysis of royal ceremics lanka plc
Royal Ceramics Lanka PLC
Vision“To Continue to be the leader in the surfacing industrylocally and to enter and impact the global market.”Mission“To offer state of the art surfacing solutions to both thehome and commercial builders with products and servicesthat transcend the highest quality, ensuring customersatisfaction by matching all expectations, growing themarket by way of product innovation, thereby enhancingshareholder wealth, developing our human resources toexcelling latitudes such that Royal Ceramics exudes astance of excellence.”
Rocell’s Brand PromiseRocell is in the business of enhancing the quality oflife by adding color, style, and elegance to life. Itcreates a sense of aspiration, expectation, fashion andstyle always stirring aspirations around good living.Creating sensorial pleasures of an aestheticallyappealing living ambiance.
Since Rocell inception in 1990 (then known as RoyalCeramics Lanka Ltd) focused its efforts on being a brandleader in its industry. In less than a decade theorganization realized its goal through innovativeness andexcellence in design. Glazed ceramic tiles and ceramicporcelain tiles are manufactured at the Companys twoproduction facilities in Sri Lanka. Over the years theCompany has graduated to producing polished tiles, non-slip rock and studded tiles.History
Rocell made the transition from a private companyto a public one in 1994. Rocell has been listed on theColombo Stock Exchange since 1994. Today it hascaptured 55% of the Sri Lankan market and exportsto numerous countries across the globe.The Companys marketing operations are supportedby a strong distribution network comprising 40showrooms and 3 warehouses located in strategicareas in Sri Lanka.
Rocell‟s “Environment Management System” which enables usto monitor and control pollution levels to a negligibleminimum. This program is in accordance with ISO 14000specifications for International Environment ManagementStandards. Some measures we have undertaken include:Manufacturing our porcelain and ceramic tiles from naturallyoccurring clays and minerals found in the diverse regions of SriLanka.Using recyclable paper cartons and boxes for packaging.Environment
Maximizing the use of natural gases and minimizing theuse of waste matter throughout the production process.Ensuring that our tiles can be maintained without the useof cleaning products that use harsh chemicals.Manufacturing tiles that last, thereby eliminating wastecreated through replacement.
Ceramic tiles are produced from natural raw materials such asfeldspar, clay, silica sand and dolomite, which have to endurea process called „vitrification‟ at temperatures of almost 1200degrees Centigrade. This mixture of raw materials determinesthe ceramic nature of the tiles. Ceramic materials are veryancient products, but they are still used today in the mostadvanced and modern applications. The tiles possess severalinherent advantages when compared with natural stone or claytiles. Low water absorption, non-existence of radioactivemetals, high resistance to stains, easy cleaning, and strengthand durability are some of the benefits of using ceramic tiles.Products
Porcelain tiles are extremely compact and resistant flooringmaterials. Natural raw materials are fused at very hightemperatures 1200 degrees Centigrade to form a single andextremely solid body, creating a perfectly homogenous slab.The product is almost completely vitrified, and because of itsexcellent mechanical properties, porcelain tiles are ideal foruse in public spaces and for industrial purposes.
Production ProcessThe production process commences with raw materials feldspar anddolomite being ground with silica sand and ball clay to create a liquidknown as body slip. This liquid is spray dried and converted to formthe base body powder. To develop colored body powder, dolomite andfeldspar are ground with different colored stains. This powder isstored separately in silos.The powder is then retrieved in required quantities and inrequired compositions and pressed at a pressure of 400 kg/cm2,to create green tiles or pre-fired tiles. The green tiles are thendried in driers for half an hour before being processed further.The tiles are then sent to the glazing line where the printingprocess is undertaken. The tiles undergo up to fifteenapplications including 4-colour printing on each line.
The tiles are then sent to the kiln for firing and are passed througha roller kiln at a temperature of approximately 1210 degreesCentigrade. In the kilns the tiles are transformed into finishedproducts conforming to the CEN 177 BIIa International Standard forCeramic products and CEN 176 B I International Standards forPorcelain products. Each tile is then inspected for surface quality,flatness and rectangularity using advanced optical sensors anddevices. The tiles are next packed and palletized using automatedpacking and robotic palletizing machines and are dispatched toshowrooms or are exported to international clients.
Rocell‟s business strategy is not to be just a volume based producerof tiles but to be an organization that focuses on value addition anddesign. As such the company has concentrated its efforts on researchand development, investing in the latest machinery and infrastructureat its manufacturing facilities.As a result of its continuous commitment to research on tiles,Rocell developed the homogenous porcelain tile. The specialty of thistile is its hardiness. The tile is characterized by its robustness andresistance features and is guaranteed to be four times stronger thannormal stone.In addition Rocell is constantly seeking ways to upgrade thetextures of its tiles, and its state-of-the-art laboratories are equippedto determine ways in which to replicate naturally occurring surfacessuch as stones and tree barks.Research & Development
Rocell‟s tiles conform to all product specifications outlined inthe CEN 176 B1 international standard, they have alsointroduced methods at their production facilities to surpass thesespecifications.Their quality management system is identified andstandardized according to the specifications stipulated in ISO9001 standards, certified by BVQ1 (London) in 1996.Rocell has also put into effect “Total Quality ManagementCriteria” which includes resources, procedures, processes andresponsibilities.Achievements
In recognition of such continuing improvements they werepresented with a National Quality Award (Merit) in 1997 bythe Sri Lanka Standards Institution.They have also devised an “Environment ManagementSystem” which enables them to monitor and control pollutionlevels and maintain them at a negligible minimum. Thisprogram is in accordance with ISO 14000 InternationalEnvironment Management Standards by BVQ1 (London) in2000.In addition they have implemented a formal “SafetyManagement System” in line with requisite internationalstandards in order to ensure the safety and enhance theworking conditions of their employees.