Functioning at near 100 per cent capacity, AGI glaspac, the Packaging Division of HSIL Ltd, is considering expansion of its manufacturing capacity, which could be either at its existing site or with a greenfield plant elsewhere.
“A decision will be taken within three-four months. The expansion, apart from serving the growing domestic market, will enable us to step up exports,” Rajesh K Khosla, President and CEO of AGI glaspac said.
Interacting with BusinessLine , Khosla said, “The company has installed capacity of 1,600 tonnes per day and we are functioning at full capacity necessitating expansion. About 10 per cent of the total production is exported and this can be doubled with expansion.”
The country has a total installed capacity of about 8,500 tonnes per day with a total turnover of about ₹7,000 crore and is growing at 7-8 per cent per annum. There is potential for faster growth as plastic gets gradually replaced with glass containers, he said.
“We had taken up about ₹150 crore investment in technology upgradation and this will enable us to produce lighter bottles and reuse glass. This will be operational in a couple of months. This will enable us to step up exports,” he said. The demand for water bottles is set to grow across segments, including homes, hospitality sector or through the entry of multinational companies introducing non-alcoholic beverages, juices and health drinks. The demand from wine segment has seen strong growth, he explained.
The company has set up 8.5 MW of solar photo-voltaic power generation capacity and this will grow toto 18 MW within three months, he said.
The company expects to close the current financial year with revenues of about ₹1,200 crore, which it hopes to take it up to ₹ 1,400 crore next financial year. The Hyderabad-based company has a strong clientele from beer, FMCG and pharmaceuticals industries including Parle Agro, Coca Cola, Pepsico India, Nestle, Carlsberg, GlaxoSmith Kline, Hindustan Unilever, ABinBev and Pfizer.