The Hindu Business Line : IFGL Refractories eyeing acquisitions in UK, Europe

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Kolkata Jan. 30 IFGL Refractories Ltd, the manufacturer of refractories which already has its footprint in six countries including China, the UK and Brazil, is eyeing acquisitions in the US and Europe.

The company hopes to raise and deploy Rs 500 crore towards this end within the next two years, according to Mr Pradeep Bajoria, Director & Chief Executive of IFGL Refractories Ltd.

Speaking to newspersons here, Mr Bajoria said IFGL, which acquired the Monocon Group of the UK last year for £8 million, has now acquired the Goricon Group of the UK for £1 million.

He said the products manufactured by Monocon and Goricon Groups were also for application in the iron and steel industry and there were several points of synergy between their operations and that of IFGL.

Synergistic benefits

Steps had been taken to harness synergistic benefits, the impact being reflected in its consolidated turnover and profit before tax in the last few quarters.

In India, IFGL has its manufacturing facility in Rourkela, Orissa. The plant has a capacity to manufacture 3 lakh pieces of continuous casting and 2.4 lakh pieces of slide gate refractories every year. About 60 per cent of the production is exported.

IFGL has already invested Rs 9 crore in China. A similar amount will be spent on expansion of the Chinese facility in the current year.

Performance

During the nine months ended December 31,2006, IFGL recorded, on a stand alone basis, a total income of Rs 109.39 crore and a net profit after tax of Rs 12.22 crore.

The corresponding figures for the nine months ended December 31,2005 were Rs 96.85 crore and Rs 11.03 crore. The consolidated turnover in the first nine months of the current fiscal was Rs 237.01 crore.

IFGL hopes to achieve a consolidated turnover of Rs 1,000 crore in the fiscal 2008-09, according to Mr Bajoria.

More Stories on : Mergers & Acquisitions | Steel | Overseas Investments

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