Hindusthan National Glass & Industries Ltd. (HNG) on Monday said it would invest Rs.2,500 crore in the next three years to expand its capacity, which includes setting up a greenfield plant.
One of the largest suppliers of glass bottles, it has also signed deals worth Rs.250-crore with leading international companies such as Emhart Glass (Switzerland), Heye Glass (Germany), Pennekemp (Germany), Horn Glass (Germany) and Zippe (Germany) for technical upgradation of its plants and for procuring various kinds of modern equipment.
“We will invest Rs.2,500 crore on various expansions, which include greenfield as well brownfield facilities, in the next three years,” HNG Vice-Chairman and Managing Director Mukul Somany told journalists here. The company, which has a capacity to produce 2,875 tonnes a day (tpd) of glass, aims to increase it to about 6,000 tpd in the next four years.
The Kolkata-based company would invest about Rs.650 crore in a new facility at Naidupeta in Andhra Pradesh and Rs.550 crore in expanding its existing plant at Nashik, while the remaining amount would be spent on upgrading the other facilities.
On deals with leading global giants, Mr. Somany said: “These deals are part of HNG's strategy to follow an aggressive growth plan which would act as a catalyst in doubling its existing capacity. This will also help us offer quality products to our customers which are benchmarked against the world's best.”
On the acquisition front, he said the company was eyeing facilities in Eastern Europe and MENA (Middle East and North Africa) region and have earmarked Rs.500 crore for the same.
“Today the Indian glass packaging industry is growing at a fast pace of 7-8 per cent annually and poised to grow at 12-15 per cent over the next ten years.
“It is riding high on its user industries especially the liquor and beer sector, which is growing at a rate of 12 per cent. With our decades of experience and knowledge of Indian market we are confident of selling the capacities being added,” Mr. Somany added.
