Videocon plans expansion of glass shells production

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.
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.
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.
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.
The following stocks are moving in Japanese markets today. Prices are as of 12:55 p.m. at the Tokyo Stock Exchange. Stock symbols are in parentheses after company names.

Add new comment