Noritake achieves Rs 1.7 b turnover target
Charumini DE SILVA
Noritake Lanka Porcelain has recorded a total turnover of around Rs
1.7 billion during this year.
The company expected a Rs 1.7 billion early this year and has
achieved their turnover targets. Although the company achieved the
turnover targets, the company only accomplished breakeven point, as they
were unable to accomplish the expected profit margins, Noritake Lanka
Porcelain Executive Consultant, Nimal Perera told Daily News Business.
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Exquisite Noritake porcelain products |
There is a significant demand and a response for Bone China
tableware, which was introduced to Sri Lanka during this year. The Bone
China products are mainly exported to countries such as Japan, USA,
Europe, Australia, South Africa and Middle-East. Most of the Bone China
products were sold to the Japanese upper end market. Bone China
tableware is regarded as the most expensive tableware in the world,
Perera said.
During the economic meltdown in 2008 porcelain exports to USA dropped
to 22 percent, where it was 50 percent.
The demand has started to recover from the situation and shows a
positive trend at present. He said we would like to venture more into
the European market, yet these economies have not fully recovered.
“The high cost of production is the biggest challenge that the
industry is facing at present. The cost of energy and the cost of raw
material are comparatively high. This has caused a great loss to the
industry,” he said. As a solution to the high cost of production the
company is focusing to get more energy efficient and latest equipment to
enhance productivity and quality of products.
The production capacity has increased from 300,000 pieces to one
million per month. With the high cost of production the company is
targeting to improve productivity.
Perera said with the boom in the tourism industry there is a growth
in local sales. Most of the Indian tourists are interested in purchasing
Bone China tableware and there is a good demand for other products too.
However, demand varies according to customers.
Perera said the company is not targeting a higher target, as the cost
is very much higher comparatively. They expect a similar growth like
this year. |
