2.

COMPANY OVERVIEW

Royal Ceramics Lanka PLC, also known as Rocell, is a prominent Sri Lankan conglomerate
that operates in the Manufacturing, Agriculture, and Mining sectors. Founded in 1990 and
headquartered in Colombo, Sri Lanka, Rocell is renowned for its specialization and artistic
excellence in surface coverings, including ceramic tiles, bathware, and sanitary ware.

The company’s female participation rate is 35.5% and it actively source products from small
and medium-sized enterprise entrepreneurs. Company is committed to minimize the
environmental impact and closely monitor energy, materials, and water consumption while
ensuring the safe disposal of waste.

The company's product range caters to various consumer segments, including residential,
commercial, and hospitality. The Rocell brand is widely recognized for its modern and
affordable product ranges that offer high quality, functionality, and design.

They contribute to sustainable economic growth by operating in seven broad economic

sectors and supporting infrastructure development in the country. Their manufacturing
infrastructure in several industries, including Tiles and Associated Products, Sanitaryware,
Corrugated Packaging, and Aluminium Profiles, has helped to build the nation's economy.
Additionally, they add value to the exports to 13 countries and partner with international
designers to continuously innovate the products.

Rocell is committed to sustainable manufacturing practices and minimizing its environmental

footprint. The company has implemented several initiatives, such as using eco-friendly
materials, investing in a waste water treatment plant, and reducing greenhouse gas emissions.

In addition to its presence in Sri Lanka, Rocell exports its products to over 30 countries
worldwide, including the USA, Australia, and Japan. The company has won several awards
and accolades for its manufacturing excellence, innovative designs, and corporate social
responsibility initiatives.
The brand produces aesthetic masterpieces inspired by nature in partnership with Italian
experts who are maestros in the field of design. Rocell's state-of-the-art tile manufacturing
facilities produce a breathtaking collection of tiles using the Tintometric System, a
completely automated process that governs ink, recycles waste, and maintains consistency
throughout. As Sri Lanka's largest tile manufacturer, Rocell produces floor and wall tiles in
various designs, sizes, finishes, and colors.

The company's exclusive bathware manufacturing plant is equipped with the latest
manufacturing methods, such as robotics for glazing, semi-pressure casting lines, automated
dryers, and high-performance kilns. It is the most modern, well-equipped, and hi-tech
production facility in Sri Lanka and the region. Rocell relies on the expertise of global
sanitary ware specialists such as Sacmi of Italy, Unimak of Turkey, and S.A.I.T. of Italy to
maintain superior standards.

Rocell's commitment to sustainable practices has been recognized with Green Labelling
Certification, making every product an epitome of universal best practices. While customer
satisfaction remains Rocell's greatest reward, the brand's commitment to constant evolution
and excellence has been recognized and awarded locally and globally.

Rocell manufactures and distributes tiles under two brand names, Rocell and Lanka Tiles.
The company also manufactures and distributes tile mortar, tile grouts, decorative pebbles,
and wooden flooring under the brand name Swisstek. Rocell Bathware manufactures and
distributes designer bathware collections of high-quality conforming to international
certifications to be on par with global brands. Their products reach seven export destinations,
and they offer distinct and unique collections of bath and shower faucets, bathroom
accessories, and plumbing accessories.

In terms of assets, Rocell has Rs. 66,140 Mn, while their revenue is Rs. 44,972 Mn, and their
liabilities are Rs. 24,163 Mn. With over 9,400 employees, Rocell predominantly operates in
the local market, in addition to its presence in 11 export regions. Overall, Rocell is a leading
manufacturer of surface coverings in Sri Lanka, committed to delivering innovative, high-
quality, and sustainable products to its customers.
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Vision – “To continue to be the leader in the surfacing industry locally and to enter the
impact the global market.”
Mission – “To offer state of the art surfacing solutions to both the home and commercial
builders with products and services that transcend the highest quality, ensuring customer
satisfaction by matching all expectations, growing the market by way of innovation, thereby
enhancing shareholder wealth, developing our human resources to excelling latitudes such
that Royal ceramics exudes a stance of excellence.”

Objectives
To provide high-quality ceramic tiles and sanitary ware products that meet the needs of
customers and exceed their expectations.

To continuously innovate and improve its product offerings to stay ahead of the competition
and meet the changing needs of customers.

To manufacture products in an environmentally sustainable way, using eco-friendly materials

and minimizing waste and emissions.

To provide excellent customer service and ensure that customers are satisfied with their
products and overall experience with the company.

To expand its market share by increasing sales and distribution channels both locally and
globally.

To provide opportunities for employee development and growth, and to create a positive and
supportive work environment.

To contribute to the development of the community and society through various corporate
social responsibility initiatives.
Achievements
Rocell Royal Ceramics ensures a strong presence in every part of its value chain to deliver
innovative and high-quality products that give them a distinct competitive edge in the market.
Their manufacturing excellence has been recognized for three consecutive years, winning
three Sumathi Awards and CNCI Achiever Award. Additionally, they have received the Gold
Award from the CA Sri Lanka Annual Report Awards competition for the last two years.
These achievements showcase Rocell's commitment to excellence and innovation in their
industry.
In 2022, Royal Ceramics Lanka PLC Group successfully adopted a new growth strategy that
resulted in a profit after tax of Rs. 8,418Mn, marking a remarkable 205% growth compared to
the previous year. Despite the disruptions and uncertainties that characterized the year, the
Group achieved a top-line growth of 43% to Rs. 44,972Mn, with positive growth recorded in
all sectors, leading to high-capacity utilization and overhead recovery. Thanks to its
investments over the past three years, the Group had a significant advantage, especially in the
Tiles and Associated Products Sector, which accounted for 68% of the Group's profit after
tax.
Royal Ceramics is a company that has achieved success in various areas. It is known for its
innovative and stylish designs, winning awards such as the Red Dot Design Award, the Good
Design Award, and the Sri Lanka Institute of Architects (SLIA) award. The company has also
taken steps to reduce its environmental impact by investing in a wastewater treatment plant,
using renewable energy sources, and reducing greenhouse gas emissions.
With a market reach that extends to over 30 countries, including the USA, Australia, and
Japan, Royal Ceramics has successfully expanded its presence in the global market.
Additionally, the company has made significant contributions to the community, such as
building houses for the underprivileged and providing scholarships for students.
At Royal Ceramics, they prioritize operational excellence and continuously strive to drive
operational efficiency by streamlining processes. Through various cost-saving mechanisms
and the automation of processes, they have achieved significant improvements in our
manufacturing operations. For example, they were able to achieve a 30% reduction in green
damages in our Bathware plant by improving the efficiency of High-Pressure Casting (HPC)
for water closets. Additionally, they increased the capacity of their Bathware plant by 23%
through process improvements. In their wall tile plant, they were able to reduce the thickness
of wall tiles and floor tiles by 5%. They also made significant improvements to kiln
efficiency in Eheliyagoda and Horana plants. Finally, they improved yield and reduced
damages in wall tile manufacturing plants, all of which have contributed to the overall
success of operations.
Overall, Royal Ceramics is a well-recognized brand in Sri Lanka, with numerous awards to
its name for its brand image and marketing campaigns.

Their key milestones are as follows.

1991 - Commenced operations as a tile manufacturer.

2002 - Commenced operations of Royal Porcelain (Pvt) Ltd.
2009 - Commenced operations of Rocell Bathware Limited.
2011 - Acquired 20% stake on Delmege Ltd.
2012 - Acquired 25.85% stake in L B Finance PLC.
2013 - Acquired 76.54% stake in Lanka Ceramics PLC.
2017 - Restructured investment in Lanka Ceramic PLC to bring Lanka Walltiles PLC directly
under Royal Ceramic Lanka PLC.
2019 - Amalgamated Royal Porcelain (Pvt) Ltd with Royal Ceramics Lanka PLC.
2021 - Acquired CP Holding (Pvt) Ltd.

Other than the above, they have obtained the following certificates since 1990.

SLS ISO 14001 - Certificate of the Environmental Management System by the Sri Lanka
Standards Institution.
SLS ISO 9001 - Authorized Schedule and Certificate of Conformity to ISO 9001 standards,
issued by the Sri Lanka Standards Institution for Glazed Ceramic Floor Tiles, Glazed
Vitrified Tiles, Glazed Porcelain Floor Tiles.
SLS 1181 - Certificate of Conformity issued by Sri Lanka Standard Institute for Rocell brand
dry pressed ceramic tiles.
CE Marking Certificate of Conformity to European standards issued by Euro Veritas Limited
- Glazed Ceramic Tiles.
Green SL Labelling System - Certificate for Environmental Performance issued by the Green
Building Council of Sri Lanka.
SLS ISO 9001 - Authorized Schedule and Certificate of Conformity to ISO 9001:2008/SLS
ISO 9001:2008 standards, issued by the Sri Lanka Standards Institution for Glazed Ceramic
Floor Tiles, Glazed Vitrified Tiles, Glazed Porcelain Floor Tiles.
Watermark - Certification Watermark certification of conformity level 1 and 2.
WELS - Water Efficiency Labelling Scheme, Australia - 4 Star rating.
SLS ISO 18001- Occupational health and safety assessment series.