Videocon plans expansion of glass shells production

Date: 3 January 2005

The Rs 4,500 crore Videocon Group is planning to invest Rs 1,000 crore to expand production capacities of glass shells which are used in TV picture tubes in 2005.

The investment will be made through internal accruals.

Videocon Group chairman VN Dhoot said: “The capacity expansion of glass shells from 16 million to 40 million units will take place at two manufacturing plants — the existing Bharuch unit, which is already producing glass shells and the Aurangabad plant where we will implement production of glass shells for the first time. With this move, we aim to become the world’s largest producer of glass shells.” Post-investment, the capacity is expected to be increased by 30%.

The company now plans to foray into Europe, Japan, Korea and Malaysia in order to export glass shells in 2005. Videocon currently exports glass shells to Indonesia and Bangkok. Of the 40 million glass shells, 20 million units will cater to the domestic market. The remaining 20 million will be exported.

This will increase the group’s contribution of glass shells to its overall sales turnover from Rs 700 crore to Rs 3,000 crore by 2006-end, he said. “Videocon has, so far, invested Rs 2,000 crore in the glass shell manufacturing business,” he added.

The move is a part of Videocon Group’s strategy to increase its portfolio and not be recognised only as a consumer durables company. About 75% of Videocon’s business is in petroleum and glass shells. The glass shells business will act as a backbone for the consumer durables industry by supplying glass shells and funnels to television manufacturers, compressors, refrigerators and motors for washing machine,” added Mr Dhoot.

Components business contributes 30% to Videocon Group’s profitability. Prior to the move, we had also invested in backward integration and got into manufacturing of components,” he said.

600450 Videocon plans expansion of glass shells production glassonweb.com

See more news about:

Others also read

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 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.
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.
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
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.
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