Talking to The Financial Express, Somany said the company would have to take on its books bank credit limit of about Rs 3 crore in addition to the Rs 18 crore block purchase. Besides, current assets acquired would account for another Rs 5 crore, he added.

He disclosed that the plant's capacity would be raised to 9,000 tonnes per annum from 6000 at present to improve its viability. The plant caters mainly to the low end segment of the market.

With this acquisition, HSIL's installed capacity for sanitaryware would go up to 27,500 tpa and 30,500 tpa post-expansion of the Raasi plant. In addition, it has glassware capacity of 52,000 tpa.

Justifying the price paid for the Raasi plant, Somany said HSIL had recently increasedcapacity of its Bibinagar plant in Andhra Pradesh by 6000 tpa at a cost of Rs 38 crore. He, however, clarified that the Bibinagar plant was fully automated and would churn out premium quality products.

For the third quarter sales and net profit were Rs 117.59 crore and Rs 11.72 crore respectively against Rs 94.89 crore and Rs 9.66 crore in the corresponding period last year. The 21 per cent growth in profit is despite higher interest and depreciation charge of Rs 5.30 crore and Rs 7.76 crore respectively.

The company has, till date, not made any provision for taxation which will be considered at the end of the financial year.