Roofit buys Sun Earth Ceramic unit

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 Roofit8217;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 Roofit8217;s sales by Rs 35 crore and profit after tax by approximately Rs 3 crore for the year ending 1998-99.