Calcutta Nov. 7: Jai Balaji Industries Limited, the flagship company of Jai Balaji Group, has acquired Nilachal Iron and Power Limited for Rs 72 crore.

Nilachal Iron makes 1.25 lakh tonnes of sponge iron annually in a plant at Saraikela in Jharkhand.

Aditya Jajodia, chairman and managing director of the group, said the acquisition fitted with the company’s growth strategy.

“We are planning to increase Nilachal Iron’s capacity and set up a power plant,” Jajodia said.

The board will meet at the end of this month to finalise expansion plans and investments. Meanwhile, the company has posted a more-than-four-fold rise in net profit at Rs 27.28 crore in the second quarter of the fiscal from Rs 6.19 crore during the same period last year.

Net profit in the first half of the year increased to Rs 50.87 crore from Rs 13.18 crore.

In April 2006, Shri Ramrupai Balaji Steels was merged with Jai Balaji Industries Limited.

The outcome of the merger got reflected in the results only from this fiscal.

Total income for the second quarter stood at Rs 274.97 crore compared with Rs 131.38 crore a year ago.

For the first half, income was at Rs 527.77 crore compared with Rs 249.41 crore a year ago.