Comments
Kolkata-based Hindusthan National Glass & Industries Ltd (HNG) plans to scale up its container glass product line for value-added pharmaceuticals and cosmetics segments at its facilities at Bahadurgunj near Delhi and Rishra in West Bengal. HNG is a market leader in the container glass segment especially in the food and beverages sector and is investing heavily in capacity augmentation in both India and abroad.
“We already have limited capacities at both Bahadurganj and Rishra to cater the pharmaceuticals and cosmetics sectors. We are now evaluating the prospect of ramping up output of such products,” Vice-Chairman and Managing Director of HNG, Mr Mukul Somany, told Business Line .
HNG Float
On the group's proposed Rs 750-crore expansion of float glass business spearheaded by HNG Float Glass Ltd, Mr Somany said that the search is on for technology to add a 1,000 tonne a day furnace – one of the biggest in the current global scale – to take the total capacity of the Halol-based facility to 1,600 tpd.
“We are taking cautious steps to ensure smooth implementation of the project,” he said adding that HNG Float has already managed to capture a 20 per cent market-share.
The group's flagship Hindusthan National Glass & Industries has a 45 per cent stake in HNG Float. IFC Washington has 13 per cent stake in the company and the rest is held by the Somany family.
Selling treasury stock
HNG group has already committed Rs 1,500 crore in greenfield and brownfield expansion in India and is in the process of firming up investment plans worth another Rs 1,750 crore (including HNG float Glass expansion) in the country. In addition the company has recently acquired Agenda Glass in Germany at a consideration of Rs 321 crore and is exploring more acquisition opportunities in container glass segment in East Europe and South East Asia including Thailand, Philippines, Malaysia and others.
While a 0.35 per cent debt-equity coupled with projected internal accruals leave financing options open, Mr Somany is planning to sell the 16.7 per cent treasury stock (approximately 1.4 crore shares valued nearly Rs 300 crore at the current market price of HNG shares) in the company – accumulated during the merger of Owens Brockway with HNG in 2006. HNG had investments in Owens.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.