Financial Daily from THE HINDU group of publications
Saturday, Apr 24, 2004

Cross Currency

Group Sites

Corporate - New Projects

Asahi to invest Rs 180 cr in Chennai plant

Our Bureau

Mr Sanjay Labroo, Managing Director and CEO, Asahi India Glass Ltd (left), and Mr Arvind Singh, Director and Chief Operating Officer, at a press conference in Chennai on Friday. — Bijoy Ghosh

Chennai , April 23

ASAHI India Glass Ltd will invest a total of Rs 180 crore in the plant it is setting up near Chennai to manufacture automotive safety glass. This investment will depend on market conditions and will happen in a period of two-and-a-half to five years, according to company officials.

The company will make this investment in three phases. In the first phase, the company will invest Rs 50 crore to set up a plant to manufacture 5,00,000 units of laminated windshields, which will be ready by October.

Most of the Rs 180 crore planned to be invested in the Chennai plant would come from internal accruals and there was no plan to raise equity, Mr Sanjay Labroo, Managing Director, Asahi India Glass Ltd, said at a press conference here on Friday.

The new plant will have a capacity of 1.25 million glass sets (laminated windshields, tempered glass used for the doors, quarter glass on the doors and for the rear) for the automotive industry. It will employ about 1,000 people. The Chennai plant will take the company's total capacity of automotive safety glass to 2.45 million glass sets.

Asahi India Glass has an automotive glass plant at Rewari in Haryana and a float glass plant at Taloja in Maharashtra. The Rewari plant has a capacity of 1.20 million car sets of tempered glass and the Taloja plant a capacity of 520 tonnes per day of float glass.

Mr Labroo said the company decided to set up an automotive glass plant at Irungattukottai, near Chennai, as it wanted to be closer to its clients - Hyundai Motor India, Ford India, Toyota Kirloskar, Hindustan Motors (for the Mitsubishi Lancer project) and Volvo India. "The idea is to be close to the domestic market and also in proximity to a port for our exports." The export plans would be directed at the replacement market. It would consider a similar plant in the western region at a later date.

He said that Asahi India Glass had a 92 per cent share of the automotive glass market. With the Chennai plant fully completed, exports were expected to account for 25 per cent of sales.

To a question, Mr Labroo said Asahi India Glass was thinking of expanding its float glass capacity. He expected the company to take a decision on this within the next six months. The ideal size for expansion would be 600 to 700 tonnes per day, whose cost would be about Rs 450 crore.

Asahi India is a joint venture between the Labroo family, Asahi Glass Co of Japan and Maruti Udyog Ltd. It commenced operations in 1987.

Mr Labroo expected turnover for 2003-04 to grow by 20 per cent over the previous year's turnover of about Rs 500 crore.

At present, Asahi India manufactured and sold glass only for the passenger car market. With the highway network improving and inter-city movement by road expected to increase, the company would look at the commercial vehicle market too.

More Stories on : New Projects | Glass

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Vizag Steel in talks to buy coal mines abroad

PSL bags $198-m Sudanese order
Shanthi Gears orders cross Rs 100-cr mark
BHEL bags order
Tata Tele (Maha) board okays FCCB issue
Leela Goa gets Imperial Mark
The `comfort' factor for auditors from public issues
Bharti Tele: Powered by mobile biz
Greaves Cotton posts Q3 net loss
Tata Power debt rating downgraded
Core promoter subscribes to Leyland's bond issue
Philips to sell lamp unit to Videocon group co
Court nod for L&T cement demerger
IT Microsystems to enter hotel biz
CESC resolutions passed
IOC plans to set up ethylene cracker at Paradip refinery
Asahi to invest Rs 180 cr in Chennai plant
Gateway Distriparks plans greenfield project in Vizag
`Go slow' at MRF plant on wage talks
Tommy Hilfiger set for Indian summer
Rajasthan Spinning mulls foray into readymade garments
STC aims at Rs 10,000-cr turnover
Strong Q1 sales not sustainable: GSK Pharma
Tata Ryerson earns Rs 300 cr in 2003-04

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line