The Hindu Business Line : La Opala may commission Uttarakhand plant by Sept

Kolkata June 13 La Opala RG Ltd is likely to commission its second Rs 37-crore opal glass plant at Sitarganj in Uttarakhand by September. Its board on Wednesday took a formal decision to increase capacity at its crystal glass facility at Madhupur in Jharkhand.

Mr Sushil Jhunjhunwala, Managing Director, said here on Wednesday that capital expenditure for crystal glass would be worked out shortly. "It should not be more than Rs 7 crore considering our intention to double the capacity from the present level of 2,000 tonnes per annum," he added. The company prefers to commission the new capacity sometime in the second half of the current fiscal.

The 20-acre Madhupur complex now hosts a 3,500-tpa opal glass facility in addition to the crystal glass unit. The Uttarakhand unit will have an installed capacity of 4,000 tpa. The project, primarily for premium tableware, would be funded through a Rs 25-crore borrowing plan, Rs 12 crore being generated from internal accruals.

The company has reported rise in sales, including exports by 17 per cent to Rs 54 crore during the year to March 31. It is in negotiations with leading global tableware brands — Rosenthal of Germany and Waterford of Ireland — to scale up its existing long-term supply arrangements.

For the domestic market, it is toying with the idea of extending its distribution network in metros and mini-metros and is likely to have a string of franchisees. The tableware and giftware company has tie-ups with major local retail chains such as Pantaloon and Shoppers' Stop.