Sri Lanka’s Tokyo Cement Company (Lanka) Ltd has been rated ’A’ by Ram Ratings on its strong market position and balance sheet against its dependency on the cyclicality of construction and government price controls.
Tokyo has been able to strengthen its market position, supported by its well brand and dealer network.
RAM said Tokyo has managed to maintain its premium pricing due to its strong branding.
Tokyo and Holcim operate local plants in a market where the others are importers.
RAM said domestic manufacturers enjoy some tariff protection and logistical advantage compared to importers, which faced the risk of hardening cement due to the product’s short shelf life.