Kolkata, Jul 14(UNI) Going forward with the acquisition of the UK-based Hoffman Group of Companies, IFGL Refractories will venture into a new area to set up ceramic foundries at Rourkela in Orissa and Kandla in Gujarat.
The proposed foundry at Rourkela, to be located in IFGL's existing facility, would start producing ceramic filters in a year's time from now, company's Director and Chief Executive Pradip Bajoria today said.
" After Rourkela, we would move to Kandla for setting up the next foundry," he told a press conference.
Mr Bajoria said the Rourkela foundry, involving an estimated investment of Rs seven crore, would have a cpacity of 800,000 pieces while the capacity target for Kandla had been pegged at 500,000 pieces.
IFGL Refractories recently acquired 96.16 per cent shareholding of Hofmann Ceramics GmbH, 100 per cent of partnership interest of Hoffman OHG, Germany, 92 per cent shareholding of Hofmann Ceramics, Czech Republic, 100 per cent shareholding of Hofmann Ceramics LLC USA and Hoffman Ceramic Limited, UK--all of which are primarily engaged in manufacture of ceramic speical filters used by foundries.
The acquisition of Hofmann Group followed an SPV by name IFGL GmbH, 100 er cent subsidiary of Monocon International Refractories Limited, UK.
The acquisition of Hofmann Group enables IFGL to enter into new business area of supplies of consumables to foundries, opening up the gate to set up manufacturing units in India, China, German, Czech Republic, the UK, the USA and Brazil.
With the expansion of ceramic filter business following the acquisition, the total turnover of the Hofmann Group was expected to increase to 16 million Euros in 2008-09 from 13.67 Euros in 2007-08.
The turnover was expected to touch 42 million Euros in the next five years, Mr Bajoria said.
He said IFGL's net profit was expected to rise by 25 per cent this fiscal from Rs 28.5 crore as recroded in last year while the turnover would grow between Rs 536-560 crore from Rs 378 crore. UNI KDG KK DB1611