It is planning to set up an automotive safety glass manufacturing unit in Tamil Nadu. The company has completed the spade works for the project and will shell out close to Rs 100 crore for setting up the facility.
The unit, slated to come up at Irungattukottai near Chennai, will be the second manufacturing unit of the company for automotive safety glasses in India. The company already has a factory in Rewari district in Haryana for the automotive industry and has another manufacturing facility in Mumbai for float glasses.
Sources in the know told FE that Asahi India has recently wrapped up an 18-month long protracted negotiations with state government officials, for setting up the greenfield plant. They have approached State Industries Promotion Corporation of Tamilnadu Ltd (SIPCOT) for buying 30 acres of land in the industrial park near Chennai.
They have filed an application and the land has already been allotted by the state agency, sources said.
The company is looking at investing close to about Rs 100 crore for setting up the facility. However, the exact quantum of investment and the capacity of the unit are yet to be finalised, they added.
Company officials, when contacted, confirmed the development but refused to give further details.
Asahi India manufactures full range of automotive safety glass products. The company also produces laminated architecture glass for use in the construction sector. The product range includes laminated windshields, tempered glass for side and back lites, zone tempered glass for windshields, silver printed defogger glass, black ceramic printed flush fitting glass and PVC - encapsulated glass.
Asahi Indias Haryana plant has a capacity to meet the requirements of 1.2 million cars. The company is the supplier to Maruti Udyog, Telco, Mahindra and Mahindra, Honda Siel, Ashok Leyland, Eicher Motors, Hyundai, Ford, Hindustan Motors for Mitsubishi Lancer and Swaraj Mazda.
It may be recalled that French glass maker Saint Gobain has also recently announced plans to expand its manufacturing facility located near Chennai to produce automotive glass for catering to the regional demand which is quite strong considering the presence of many automobile majors here and not to mention the export possibilities.
During the quarter ended September 2003, Asahi India had posted a net profit of Rs 18.41 crore on a total revenue of Rs 123.80 crore. As on September 30, 2003, the Indian promoters holding in the company was about 33.12 per cent, of which Maruti Udyog holds 11.11 per cent and Asahi Japan holds 22.21 per cent.