HNG Float Glass Ltd, an associate company of Hindustan National Glass & Ind. Ltd (HNG), a glass container manufacturer, may raise Rs 500 crore debt to expand its manufacturing capacity, said Mr Mukul Somany, HNG’s Vice-Chairman and Managing Director.
According to him, the present production capacity of 600 tons a day will be increased to 1,600 tons a day.
“It requires Rs 750 crore investment. It will be a mix of debt and internal equity. Debt will be close to 60 to 65 per cent. We will decide how to raise the debt in a month or two,” Mr Somany told PTI.
HNG Float Glass has a manufacturing unit at Halol, near Vadodara, which started commercial production of float glass last year. A memorandum of understanding on expansion was inked by the company with the State Government at the Vibrant Gujarat Summit. The project is scheduled for completion in 2013-14.
Mr Somany said this year the revenues may touch Rs 1,650 crore with Rs 120 to 140 crore bottomline.
Last year, the company clocked a turnover of Rs 1371 crore with a net profit of Rs 155 crore.
Saying that the company has the intention to set up a 150 to 200 megawatt power plant, he said power is one of the key inputs in the process of glass-making.