Royal Ceramics Ltd., a leader in the ceramic tile manufacturing business in Sri Lanka, has cracked the one million square metre production barrier in the year ended March 31, 1998, and has also qualified for ISO 9001 certification.

The production attained exceeded the factory's installed capacity and, in the words of General Manager M.S.W. Fernando, "would have been sufficient to pave the Galle Road from Fort to Wadduwa.''

"This phenomenal achievement was due to increased efficiency and productivity whilst maintaining the highest quality standards; and this assertion has been further confirmed by the company being honoured by the merit award in the Large Manufacturing Company category at the National Quality Awards 1997 conducted by the Sri Lanka Standards Institution,'' Fernando said.

The company that has maintained its sales and profit growth record announced that turnover, both local and export, had increased enabling a profit of Rs. 81 million in the year under review, up from Rs. 74.4 million a year earlier.

Mr. F.P. de Alwis, the company's chairman, was confident that improved production and the introduction of several new designs should help to further increase turnover and profitability in the current year.

The company has better than doubled production from 492,100 square metres of tile in 1994/95 to 974,000 sq. mt. in 1996/97 and 1.1 million sq. mt. in 1997/98. Export levels have been maintained at anticipated levels and higher profits earned despite the Asian crisis, de Alwis said.

He said that planned sales promotion efforts and improvements in tile laying through their fully owned subsidiary, Cerampro (Pvt.) Ltd. in collaboration with Laicrete Ltd. of the USA, "should help to further increase turnover and profits.''

De Alwis who announced a final 10% dividend to shareholders on top of an interim 10% paid in February said that they were maintaining the previous year's 20% dividend level keeping their promise of trying to maintain a good dividend record.

"It is relevant to mention that a ten-rupee share of this company is now quoted at only Rs. 14 (it was down to Rs. 12.50 last week), because anyone investing at this value will receive a return of more than 14% tax free, which is much higher than the return available from most available investments,'' he said.

The chairman said that their 7-year record demonstrated the conversion of a green fields operation to a very successful export oriented company which had progressed in all spheres of activity. They were conscious of the need to establish long term strategies to face the challenges of the next century.

A new production expansion programme costing Rs. 250 million was planned in order to maintain the company's position as one of the world's leading porcelain tile manufacturers. With this expansion programme, they hoped to manufacture several new kinds of tiles with new and improved designs.

Mr. D.T. Mannakkara, the managing director of the company since inception, had resigned with effect from July 1. The chairman expressed the board's deep appreciation for his loyal and devoted service. Mr. Mannakkara will continue as a director of the company. The chairman thanked employees at all level from whom they received the fullest co-operation. "Their loyalty and dedication deserves special mention,'' he said.

The general manager said that the company's profits had grown steadily from Rs. 29.5 million in 1993/94 to Rs. 61 million in 1994/95, Rs. 67.5 million and was now "gradually approaching the Rs. 100 million mark with no downturn whatsoever.''

Fernando said that they had a website on the Internet and was now in a position to entertain inquiries and even process orders online, using an e-mail response system. "This website will be an efficient and value adding marketing tool and will create global visibility for Royal Ceramics on the Internet,'' he said.

The directors of the company are Messrs. F.P. de Alwis (chairman), A,M. Weerasinghe (deputy chairman), D.T. Mannakkara, M.T.L. Fernando, B.M. Amarasekera, A.L. Karunanayake, K.A. Gunawardene, M.N. Cader, S.E. Captain and P.K.B. Dias.