IFGL Refractories for more foreign takeovers
Kolkata, Jan 30: Looking for takeovers in home and abroad IFGL Refractories of the SK Bajoria group eyes a three-fold growth in its turnover in the next three-four years.
"We are looking around for multiple acquisations in home and abroad, including Europe and the USA in the next two years. We are expecting 15 to 20 per cent inorganic growth by this time to take our turnover to Rs 1000 crore by 2009-10," company's Director and Chief Executive Pradip Bajoria told reporters.
The city based refractory maker expects to finish the current fiscal with a turnover between Rs 330 and Rs 340 crores recording a 15 to 20 per cent growth pover last year's figure of Rs 231 crore.
IFGL has also acquired the UK based Goricon and Monocon groups in the last two fiscals. It now has manufacturing facilities in six countries, including Brazil, China and India.
The company exports 60 per cent of its products from India.
In a reply to a question, Mr Bajoria said the company had targetted China as one of its major manufacturing and exporting hubs because of availability of raw materials and zero export duty on finished products.
"We have a longtime idea to do bulk of manufacturing in China and India. Most of the refractory materials including bauxite and magnacide are in abundance in China. Though China is perhaps the only country to have 17 per cent VAT on export of raw materials it has no export duty on finished products, and we want to take that advantage," he said.
IFGL was in the process of shifting some of its business from the UK to China as part of its restructuring of the overseas operation to avail of the cost advantage in China.
"But we are still looking at the acquisations in the UK to gain market access," he said while replying to a question.
The company has recorded a total income of Rs 109.39 crore and a net profit of Rs 12.22 crore on stand-alone basis for the nine months' period ended December 31, 2006.
Mr Bajoria said overseas operation contributed significantly in the overall revenue.