Hind Glass eyes floatglass foray

Date: 1 November 2005
Source: Business-standard.com

Date: 1 November 2005

Hindusthan National Glass & Industries Ltd (HNG) of the Somany group, one of the leading manufacturers of glass containers in the country, is planning to float a subsidiary to foray into floatglass business.

The company has already initiated discussion with few overseas floatglass companies for technical tie up for the new line of business. The joint managing director of HNG, Mukul Somany informed that it is now doing a market survey on floatglass industry.The survey report is expected in December. After that it would take a decision whether to go alone or to induct a strategic partner for the new business. "We shall take up the project in March 2006 and likely to complete it in 18 months," he said.

According to Somany, the group has estimated an investment of around Rs 500 crore for the new business venture.

"We are planning to invest around Rs 750 crore in next 3-4 years. Apart from the new business we shall invest around Rs 250 crore for technical upgradation of our existing facilities. We shall decide about the financing next year," he said.

HNG has production facility at Rishra in West Bengal, Haryana, Pondicherry and Uttaranchal. The company recently acquired glass container unit of L&T at Nasik in Maharashtra. The HNG joint MD claimed that after the acquisition of glass container unit of L&T, the company now had 63 per cent marketshare in the glass container industry in the country.

"Earlier we used to have 56 per cent marketshare," he said. According to Somany, the combined capacity of glass container of HNG is around 2150 ton per day. It was planning to expand the capacity to 3,000 ton per day by 2008. Commenting on its foray into floatglas business, he said that the size of the floatglass market at Rs 3,500 crore was bigger than Rs 1,400 crore glass container market.

The company was looking at 15 per cent marketshare in the floatglass mart.

Other major players in this segment included Gujarat Guardian and Saint Gobain.HNG registered a turnover of Rs 418 crore and a net profit of Rs 31.5 crore in 2004-05.

600450 Hind Glass eyes floatglass foray glassonweb.com

See more news about:

Others also read

MORE...

Emirates Glass wins major supply contract for Palm Jumeirah
Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
ISRA Receives Major Display Glass Inspection Order
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
Rexam, buyout firms to bid for Calmar-sources
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
Company to close lime plant in Carey next month
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
China glass import a cheaper option for Amritsar firm
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
Corning, AGC Glass-substrate Capacity Expansion Projects Unit: 1 furnace Company Location 2004 2005 2006 Corning U.S.
Japan 1 2 1 S. Korea 6 6 3 Southern Taiwan 4 2 0 Central Taiwan 0 4 2 AGC Japan 0 1 1 Taiwan (Yunlin) 1 1 1 Source: PIDA (Photonic Industry & Technology Development Association) Taiwan TFT-LCD Panel Makers Happy to See Substrate-price Falls in 2006 Taipei, Dec. 27, 2005 (CENS)--Both of the world's top-two glass-substrate makers are actively expanding their production capacity in Taiwan, which is expected to cut substrate transportation time and cost for local thin film transistor-liquid crystal display (TFT-LCD) panel makers and boost production efficiency, according to Michael Wang, project manager and senior analyst of Taiwan's PIDA (Photonic Industry & Technology Development Association).According to Wang, Asahi Glass Co. (AGC) of Japan has solved problems in lowering the defect-free rate for the production of fifth- and sixth-generation (5G, 6G) glass substrates, and is expected to tap the market with products with higher price competitiveness in 2006 to grab more market share in the 6G substrate businessIn addition, Wang added, the aggressive capacity added by both Corning of the U.S., the world's No. 1 substrate supplier, and AGC, the No. 2, will lead to price drops for glass substrates and will especially benefit TV panel makers such as AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO) in TaiwanCurrently, Wang pointed out, a 6G substrate is priced at about 27,000 to 30,000 Japanese yen, about 1,000 to 2,000 yen lower than in the third quarter of 2005.

Add new comment