KOLKATA: The Kolkata-based IFGL Refractories Ltd on Monday announced its acquisition of Germany-based Hofmann Group of Companies, a manufacturer of ceramic special filters used by foundries.
Pradip Bajoria, director and chief executive, IFGL, said the total cost of acquisition was around Rs 40 crore.
Bajoria said, “The acquisition transaction was funded by loan from HSBC Bank and internal accruals of Monocon International Refractories Ltd, IFGL’s subsidiary in the UK.”
Bajoria said the acquisition would enable IFGL to cater to newer business areas, in the sector of supplying consumables to foundries. “The foundry industry globally is growing at around 17%. With this acquisition, we can provide the industry with the bouquet of superior ceramic products through IFGL,” Bajoria said. The buyout will also help IFGL to improve its global presence.
According to him, with this acquisition, IFGL will have manufacturing facilities in seven countries namely India, China, Germany, Czech Republic, US, UK and Brazil. The company’s future plans include manufacturing of ceramic filters in India for the domestic as well as export markets. “We also have plans to manufacture other consumables required in the foundry industry,” Bajoria said.
He said with this acquisition IFGL is looking forward for manufacturing specialised products in India such as technical ceramics for the wire and cable industries. “All foundry products will be sold under the Hoffman Ceramics brand,” Bajoria said. The Hofmann Group has two operating manufacturing facilities at Bela in Czech Republic and Erdback in Germany.
To start with IFGL will manufacture filters from Rourkela, where it already has a plant. Going forward, it would invest Rs 7 crore to set up another facility in the remaining five acres at the same location. Later, it could shift the plant to Pune or Kandla.
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