HNG Float Glass Ltd, part of the Kolkata-based CK Somany controlled HNG Group, will firm up the technology for setting up the world's largest 1,000 tonne per day furnace at Halol, in Gujarat, this month.
The company expects to achieve financial closure for the Rs 850-crore brownfield expansion project by March.
Incorporated in 2006, HNG Float currently operates a 600-tpd furnace at Halol and controls 20 per cent of the expanding float glass market in the country.
The new technology – to be developed in-house using available solutions - will be 8 per cent more cost efficient than the company's existing furnace, Mr Mukul Somany, Vice-Chairman and Managing Director of the group's flagship, Hindusthan National Glass and Industries Ltd (HNG), told Business Line.
“We have an existing tie-up with the US-based Toledo Engineering Company (TECO).
“We are planning to blend the American, German and our own technology to create a hybrid one which will be most efficient in terms of energy consumption,” Mr Somany said. The flagship company of the group holds 45 per cent stake in HNG Float, IFC Washington holds 13 per cent stake, while the rest is held by the Somany family.
The 600-tpd plant currently consumes about 1,400 kilo calorie a kg of energy.
Under this new technology, the energy consumption for the additional 1,000 tpd plant will be about 1,280 kilo calorie a kg.
“This (the new technology) will give us a sustainable cost advantage,” Mr Somany pointed out.
Responding to a query regarding the impact of rise in input costs on the estimated budget of the project, Mr Somany said, “Input costs and depreciating rupee might lead to a slight escalation in the project cost.
“However, the broad indication of Rs 850 crore will be maintained.”