Hindusthan National Glass Industries Ltd (HNGIL) plans to invest about Rs 2,500 crore over 7-8 years on a new manufacturing facility in the Neemrana region of Rajasthan.
The firm that has been scouting for a location in various States, including Haryana and Madhya Pradesh, has zeroed in on a 500-acre site in the Neemrana region, according to a top company official.
“We have located the site in Neemrana region where we plan to invest around Rs 2,500 crore in the next 7-8 years,” said the official, who did not want to be identified.
The new site would have a manufacturing capacity of around 2,000 tonne of float glass and nearly 2,200 tonne of container glass per day, the official added.
The investment is part of the company’s plans to put in Rs 5,000 crore to augment its production capacity.
The company had earlier said that it will fund the investments primarily through internal accruals, and very small portion through debt and equity.
The firm, which had a total production capacity of 9.40 lakh tonne in the last fiscal, expects it to go up to 12 lakh tonne in FY’2012.
HNGIL has plants at Bahadurgarh in Haryana, Nashik in Maharashtra and Neemrana in Rajasthan.
It is also setting up a new unit at Naidupeta in Andhra Pradesh at an investment of Rs 650 crore. The unit with a capacity of 750 tonne per day is expected to be operational by next month.