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ENS ECONOMIC BUREAU
MUMBAI, JUNE 1: Roofit Industries Ltd (Roofit), manufacturers of asbestos cement sheets, is taking over the asbestos pipe division of Sun Earth Ceramics Ltd (SECL) effective 1st July 1998.
The acquisition cost has been ascertained at Rs 15.07 crore after taking into consideration the report on valuation of fixed assets and net current assets at book value of the pipe division's assets.
SECL is selling the pipe division at Aurangabad to focus on its core business of Sonora ceramic tiles. The acquisition of the pipe division will expand Roofit's share in the asbestos industry. The plant can be imparted versatility, by introducing a minor modification in its design for manufacturing AC sheets in addition to AC pipes. With this, the plant can be used to exploit the market conditions more advantageously.
Both Roofit Industries and Sun Earth Ceramics belong to the Motwani Group whose core business is products and accessories for the building industry. Group companies have a combined turnover of approximatelyRs 300 crore.
Roofit is funding the acquisition cost of Rs 15.07 crore through a preferential issue of equity shares.
The acquisition is estimated to increase Roofit's sales by Rs 35 crore and profit after tax by approximately Rs 3 crore for the year ending 1998-99.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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