The Hindu Business Line : Saint-Gobain to invest Rs 600 cr more to complete expansion

SAINT-GOBAIN Glass India Ltd will see its expanded capacity going on stream some time in 2006. The company will invest Rs 600 crore in the expansion when another float glass line will be set up at the plant in Sriperumbudur, about 55 km from here.

The company plans to have three product lines in the expanded capacity, including one for automotive glass, according to Mr B. Santhanam, Managing Director, Saint-Gobain Glass India Ltd.

It may be recalled that Saint-Gobain Glass, the French multinational, had last October announced plans to invest another Rs 500 crore in its plant at Sriperumbudur and signed an expression of commitment with the State Government for this investment. Saint-Gobain Glass India's plant at Sriperumbudur was set up with an initial investment of Rs 525 crore. It has a capacity of 650 tonnes per day of float glass and started commercial production in July 2000.

In an informal chat with reporters here on Friday, Mr Santhanam said once the expansion was completed, the Sriperumbudur plant would be the largest investment by Saint-Gobain Glass in a single location.

The second float line is expected to have the same capacity as the first line.

With demand picking up in the domestic market, especially in the construction industry, Saint-Gobain Glass India was selling almost 80 per cent of its production in the domestic market and exporting the balance.

Asked about plans of Asahi India Glass Ltd to set up a plant to manufacture automotive safety glass near Chennai, Mr Santhanam said Saint-Gobain Glass India was selling raw glass to Asahi India for its plant in Gurgaon. Asahi India was both a customer and a competitor.

Asahi India was the largest manufacturer of automotive safety glass, with a 12 per cent market share. The automotive glass market accounted for 15 per cent of the total glass market in the country, which last year was estimated at about 600,000 tonnes.

It may be recalled that Asahi India had announced plans to set up a plant at Irungattukottai, near Chennai, to manufacture automotive safety glass. The plant, to be set up at an investment of Rs 50 crore, will have a capacity to manufacture five lakh laminated windshields.