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Hindusthan National Glass & Industries Ltd (HNG) is expected to commence production at its Naidupeta container glass facility in Andhra Pradesh by September. The Rs 800-crore greenfield project will have a capacity of 650 tonnes a day.
“Naidupeta plant will be on stream by the first week of September. Commercial production though will begin in another two to three months,” Mukul Somany, Vice-President and Managing Director, told Business Line after the company’s annual general meeting on Saturday.
The project is a part of HNG’s Rs 1,600 crore expansion plan. The company has already implemented the 650-tonne a day brownfield container glass project at Nashik in Maharashtra.
Mining Contracts
According to Somany, the company has already obtained mining contract (for silica) in the Gudur mines in Andhra Pradesh. The mines will supply raw materials to its Naidupeta unit.
“We are in the process of appointing a contract miner. We hope to start mining in another six to nine months’ time,” he said.
The company has also sought mining permission in Maharashtra for supply of raw materials (silica) to its Nashik unit.
“In future, we hope to have 50 per cent of our raw materials procured from our own captive sources,” Somany added.
Turnaround in Germany
Somany, however, said he was hopeful of its German operations being back in black in another two to three months.
In its maiden overseas venture, HNG had acquired assets of Agenda Glass AG in Germany from the insolvency administrator at a consideration of €50 million (approximately Rs 345 crore) last fiscal. The German company is yet to see a turnaround.
“We are moving as per plans.” He said operations (in Germany) will report a pre-tax profit in another three months.
abhishek.l@thehindu.co.in
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