Market Achievements History Product Recent Developments Pr
Market When demand exceeds supply, it’s not something companies generally complain about. It means the market is yearning for a product and someone needs to fulfil that need. When Lanka Walltile Limited (LWL) commenced operations in Sri Lanka in 1975, to manufacture and market ceramic-glazed walltiles for the local and export markets, the company soon found that it would have to bolster its supply. The factory it set up in the hills of Balangoda (approximately 145 kilometres from Colombo) was the only one of its kind. Its capacity to produce 140,000 square metres each month was clearly insufficient, since its products were immediately in demand in both export and local markets. It is rewarding when your product is in demand to such an extent that you have to innovate faster than you had planned. These market conditions in the interim were what propelled LWL from being a local supplier to becoming an international brand. There were attractive margins to be derived as LWL’s products found their way to markets in the US, the UK, Singapore and Hong Kong. But this had consequences, with the local market being neglected for a while. And the one-time monopolistic market changed drastically as the government permitted imports of tiles from neighbouring countries. Then, in the early 1990s, the Sri Lankan market was confronted with new challenges. An influx of cheap, poor-quality tiles from Asian countries meant that, within a couple of years, LWL had lost its majority market share. The turn of the century saw LWL’s share of the market reduced to approximately 40% in the local segment, although the export trade boomed. The quality of LWL’s product found favour with many overseas buyers, particularly in the US, Canada, Singapore and Hong Kong. So once again, the market for tiles began to look extremely attractive. In 1995, a second factory with a capacity to produce 140,000 square metres of ceramic-glazed walltiles was established by LWL. In recent years, through judicious strategies
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SUPERBRANDS
aimed at increasing productivity, reducing costs and promoting products, LWL has regained its leadership in the local market – it now enjoys a little over 52% of market share. Its superior quality, and consistent designs and service, have won the confidence of local customers who demand value for money when investing in products such as tiles.
Achievements During its operational span of over 30 years, LWL has been bestowed with many awards for its performance in exports, productivity, quality and excellence. These include Presidential Export Awards in 1981, 1993, 1994 and 1995; Presidential Export Awards (Certificates Of Merit) in 1982, 1984, 1988 and 1992; National Productivity Award (Manufacturing Sector) Runner-up in 1993; National Productivity Award (Certificate Of Merit) in 1994; The Association of Interior Designers Second Runnerup; National Productivity Award Certificate Of Merit in 1999; National Award for Export Excellence 2003 in Silver Trophy; Quality Management System complying with ISO 9001 requirements in 1997; and Quality Management System complying with ISO 9001/2000 in 2004. These awards have enhanced LWL’s status as a leading exporter of industrial products in Sri Lanka. LWL has also set high benchmarks for its production process through these achievements. The LWL brand is thus known for its product and service qualities. In recent years, LWL has been recognised as one of the 50 leading listed companies in Sri Lanka by Media Services, the publisher of THE LMD 50 – it, in fact, was ranked number 26 in 2004/05 by the business magazine.
History LWL commenced operations with the setting up of its Balangoda factory in 1975 to produce and market ceramic-glazed walltiles. The technology used to produce these tiles, the tunnel kiln, was a process that was very popular at the time. Some 1,000 people were employed at the Balangoda complex, with another 100 at the company’s head office in Colombo. Originally, LWL worked in collaboration with the Danto Corporation and Nichimen Company of Japan, with the government of Sri Lanka holding a controlling stake. Today, LWL exports to approximately twenty countries worldwide, with 60% of its exports going to North American markets. Increased production from two factories now supply
both the local and export sectors.
Product Tile sizes vary from market to market. The smallest tile is 4′x4′, while the largest is 16′x12′. Additionally, border tiles, hand-made tiles, strip tiles and hand-painted tiles are produced at both factories. The LWL products are twice fired; and on occasion, a third and fourth firing is undertaken. LWL also manufactures handpainted tiles depicting scenes of traditional Sri Lankan festivals, religious events and natural habitats. Nature in its full glory is also vividly displayed on murals which are in high demand both locally and internationally.
Recent Developments The original tunnel kiln technology of some 30 years ago is still utilised in production, since it has the advantage of enabling the manufacture of different sizes and quantities simultaneously. This old technology provides production flexibility that is not available in LWL’s newer technology processes at its Meepe factory. But technology must keep pace with market demands – especially in terms of the speed of production and increased volumes. In 1994, LWL became a public quoted company when its shares were traded on the Colombo Stock Exchange for the first time. In 1995, a second
state-of-the-art factory was constructed some 35 kilometres away from Colombo. Recent developments include the introduction of new designs and sizes at LWL’s new plant, strip tiles, rock and ripple finishes, and rotary printed tiles. The Meepe plant is now experiencing full-capacity utilisation and LWL is contemplating an expansion of its facility by around 80% in the medium term. The older plant at Balangoda has taken on the production of hand-moulded tiles for the export market – and it is looking to downplay the production of field tiles. This will certainly increase its share of bordered and hand-painted tiles in the market. Another recent development relates to the production of ceramic bricks for house building. This venture into building materials opens a new market for the company, as the housing boom continues unabated locally. LWL’s reputation for quality, not to mention its competitive pricing structure, will be amongst its advantages in the local marketplace.
Promotion LWL has engaged in concerted media campaigns and outdoor promotions since its inception. Whilst media advertising and promotion confine themselves to the traditional press, television and radio, the company also advertises in souvenirs, magazines and other publications. Outdoor advertising has also gathered momentum, with roadside hoardings (billboards), paintings on buses, and dealer and distributor signage being pursued. In addition, instore promotions take place during festive seasons in April and December each year.
In addition, LWL participates in the Coverings Exhibitions, an annual event in the US, where it has displayed its products for 14 consecutive years. This has strengthened its presence in the US and continually opens new avenues in the global marketplace. LWL’s marketers also regularly visit its clientele in the US and Europe, promoting the company’s products and studying modern trends. They also participate at the Cevisama, Cersaie and Ceramic Tile Exhibitions in Spain and Italy. This ongoing promotional strategy enables the company to decipher trends and introduce new product lines to emerging markets. China is making rapid progress in the global marketplace. It is, in fact, the largest producer of ceramic tiles in the world. The emerging economic powerhouse is also becoming a popular destination for sourcing replacement and spare parts for manufacturing equipment, and LWL is taking advantage of this opportunity – and making substantial savings on its capitalexpenditure budget as a consequence. To this end, a team of senior managers visited the twentieth Chinese International Ceramic Industry Exhibition in mid 2006, to view China’s offerings and to source ancillary equipment such as spray dryers and ball-milling units amongst other consumables. ‘Beauty that lasts a lifetime’ is LWL’s tagline. The company stands by this positioning statement, seeing to it that its products are of exceptional and long-lasting quality. At the showroom level, LWL showcases its latest innovations, with attractive displays at its main store in Colombo, and distributor outlets in the
outstations and overseas.
Brand Values The LWL brand has portrayed itself as a genuine, reliable, long lasting, elegant Sri Lankan product for over 30 years. It guarantees its customers ‘beauty that lasts a lifetime’ and extends a service that can be trusted by its customers. The LWL logo is recognised as representing a trustworthy, strong, high-quality product with eye-catching designs. Its foray into and growth in export markets is proof that the LWL brand enjoys the confidence of buyers whenever it identifies a market.
www.lankawall.com
THINGS YOU DIDN’T KNOW ABOUT
LWL LWL is the only Sri Lankan manufacturer of ceramic-glazed walltiles. Over 80,000 drop-in customers visit its showroom in Colombo each year. Over 750 dealers sell LWL products throughout Sri Lanka. All LWL ceramic-glazed walltiles go through a double-firing process. LWL produces high-quality ceramic bricks for house building, which are made from its own waste material. SUPERBRANDS
59
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SUPERBRANDS
aimed at increasing productivity, reducing costs and promoting products, LWL has regained its leadership in the local market – it now enjoys a little over 52% of market share. Its superior quality, and consistent designs and service, have won the confidence of local customers who demand value for money when investing in products such as tiles.
Achievements During its operational span of over 30 years, LWL has been bestowed with many awards for its performance in exports, productivity, quality and excellence. These include Presidential Export Awards in 1981, 1993, 1994 and 1995; Presidential Export Awards (Certificates Of Merit) in 1982, 1984, 1988 and 1992; National Productivity Award (Manufacturing Sector) Runner-up in 1993; National Productivity Award (Certificate Of Merit) in 1994; The Association of Interior Designers Second Runnerup; National Productivity Award Certificate Of Merit in 1999; National Award for Export Excellence 2003 in Silver Trophy; Quality Management System complying with ISO 9001 requirements in 1997; and Quality Management System complying with ISO 9001/2000 in 2004. These awards have enhanced LWL’s status as a leading exporter of industrial products in Sri Lanka. LWL has also set high benchmarks for its production process through these achievements. The LWL brand is thus known for its product and service qualities. In recent years, LWL has been recognised as one of the 50 leading listed companies in Sri Lanka by Media Services, the publisher of THE LMD 50 – it, in fact, was ranked number 26 in 2004/05 by the business magazine.
History LWL commenced operations with the setting up of its Balangoda factory in 1975 to produce and market ceramic-glazed walltiles. The technology used to produce these tiles, the tunnel kiln, was a process that was very popular at the time. Some 1,000 people were employed at the Balangoda complex, with another 100 at the company’s head office in Colombo. Originally, LWL worked in collaboration with the Danto Corporation and Nichimen Company of Japan, with the government of Sri Lanka holding a controlling stake. Today, LWL exports to approximately twenty countries worldwide, with 60% of its exports going to North American markets. Increased production from two factories now supply
both the local and export sectors.
Product Tile sizes vary from market to market. The smallest tile is 4′x4′, while the largest is 16′x12′. Additionally, border tiles, hand-made tiles, strip tiles and hand-painted tiles are produced at both factories. The LWL products are twice fired; and on occasion, a third and fourth firing is undertaken. LWL also manufactures handpainted tiles depicting scenes of traditional Sri Lankan festivals, religious events and natural habitats. Nature in its full glory is also vividly displayed on murals which are in high demand both locally and internationally.
Recent Developments The original tunnel kiln technology of some 30 years ago is still utilised in production, since it has the advantage of enabling the manufacture of different sizes and quantities simultaneously. This old technology provides production flexibility that is not available in LWL’s newer technology processes at its Meepe factory. But technology must keep pace with market demands – especially in terms of the speed of production and increased volumes. In 1994, LWL became a public quoted company when its shares were traded on the Colombo Stock Exchange for the first time. In 1995, a second
state-of-the-art factory was constructed some 35 kilometres away from Colombo. Recent developments include the introduction of new designs and sizes at LWL’s new plant, strip tiles, rock and ripple finishes, and rotary printed tiles. The Meepe plant is now experiencing full-capacity utilisation and LWL is contemplating an expansion of its facility by around 80% in the medium term. The older plant at Balangoda has taken on the production of hand-moulded tiles for the export market – and it is looking to downplay the production of field tiles. This will certainly increase its share of bordered and hand-painted tiles in the market. Another recent development relates to the production of ceramic bricks for house building. This venture into building materials opens a new market for the company, as the housing boom continues unabated locally. LWL’s reputation for quality, not to mention its competitive pricing structure, will be amongst its advantages in the local marketplace.
Promotion LWL has engaged in concerted media campaigns and outdoor promotions since its inception. Whilst media advertising and promotion confine themselves to the traditional press, television and radio, the company also advertises in souvenirs, magazines and other publications. Outdoor advertising has also gathered momentum, with roadside hoardings (billboards), paintings on buses, and dealer and distributor signage being pursued. In addition, instore promotions take place during festive seasons in April and December each year.
In addition, LWL participates in the Coverings Exhibitions, an annual event in the US, where it has displayed its products for 14 consecutive years. This has strengthened its presence in the US and continually opens new avenues in the global marketplace. LWL’s marketers also regularly visit its clientele in the US and Europe, promoting the company’s products and studying modern trends. They also participate at the Cevisama, Cersaie and Ceramic Tile Exhibitions in Spain and Italy. This ongoing promotional strategy enables the company to decipher trends and introduce new product lines to emerging markets. China is making rapid progress in the global marketplace. It is, in fact, the largest producer of ceramic tiles in the world. The emerging economic powerhouse is also becoming a popular destination for sourcing replacement and spare parts for manufacturing equipment, and LWL is taking advantage of this opportunity – and making substantial savings on its capitalexpenditure budget as a consequence. To this end, a team of senior managers visited the twentieth Chinese International Ceramic Industry Exhibition in mid 2006, to view China’s offerings and to source ancillary equipment such as spray dryers and ball-milling units amongst other consumables. ‘Beauty that lasts a lifetime’ is LWL’s tagline. The company stands by this positioning statement, seeing to it that its products are of exceptional and long-lasting quality. At the showroom level, LWL showcases its latest innovations, with attractive displays at its main store in Colombo, and distributor outlets in the
outstations and overseas.
Brand Values The LWL brand has portrayed itself as a genuine, reliable, long lasting, elegant Sri Lankan product for over 30 years. It guarantees its customers ‘beauty that lasts a lifetime’ and extends a service that can be trusted by its customers. The LWL logo is recognised as representing a trustworthy, strong, high-quality product with eye-catching designs. Its foray into and growth in export markets is proof that the LWL brand enjoys the confidence of buyers whenever it identifies a market.
www.lankawall.com
THINGS YOU DIDN’T KNOW ABOUT
LWL LWL is the only Sri Lankan manufacturer of ceramic-glazed walltiles. Over 80,000 drop-in customers visit its showroom in Colombo each year. Over 750 dealers sell LWL products throughout Sri Lanka. All LWL ceramic-glazed walltiles go through a double-firing process. LWL produces high-quality ceramic bricks for house building, which are made from its own waste material. SUPERBRANDS
59
