Calcutta, Feb. 17: Vesuvius India, the leading manufacturer of special refractories, today said it was planning to increase its production capacity through acquisition, while announcing a 25 per cent growth in net profit and a near 27 per cent rise in income in 2003.

Managing director Biswadip Gupta said Vesuvius India was in discussion with two to three companies for acquisition of manufacturing units.

The company has over the last few years grown rapidly through acquisition. It had bought over two manufacturing facilities in the space of three years, and now has plants at three locations — Calcutta, Visakhapatnam and Mehsana in Gujarat.

The increase in production capacity would enable Vesuvius India — which is part of a multinational group — to become a sourcing base for its UK-based parent, Vesuvius Group Ltd, Gupta said.

“We view Vesuvius India as a strategic partner in the group’s activities,” said Alan Ridley, regional director (Asia Pacific) of Vesuvius, UK.

Over the last few years, the Asian market had grown rapidly while tradition markets for the group like North America and Western Europe were “static at best”, Ridley said.

“So Asia is an extremely important market (for Vesuvius, UK) and within Asia the two most buoyant economies are China and India. The group’s investment focus going ahead will be centred in this region.”

Vesuvius India is now geared to tap markets in West Asia and the Far East and expects its income from exports to jump manifold in 2004. In 2003, it earned a little over Rs 2 crore from exports, but this year, it could increase by as much as Rs 10 crore.

The company today announced its financial results for 2003. Its income has risen by Rs 28.75 crore over last year to Rs 136.13 crore, and net profit of Rs 20.85 crore was Rs 4.24 crore higher compared with 2002. Profit per share (EPS) for 2003 was Rs 10.28, as against Rs 8.18 last year.