Asahi India Glass Ltd, a three-way joint venture of Asahi Glass Company Ltd, Maruti Udyog Ltd (MUL) and BM Labroo and Associates, is to expand its auto safety glass capacity with a new plant in Tamil …
Asahi India Glass Ltd, a three-way joint venture of Asahi Glass Company Ltd, Maruti Udyog Ltd (MUL) and BM Labroo and Associates, is to expand its auto safety glass capacity with a new plant in Tamil Nadu. The company has completed the preliminary work for the project and will spend nearly INR 1 billion to set up the factory. The unit, to be located at Irungattukottai near Chennai, will be the company“s second manufacturing plant for automotive safety glasses in India. The company already has an auto industry factory in Rewari district in Haryana and another manufacturing facility in Mumbai for float glass. Sources close to the project said that Asahi India recently finalized a deal with state government officials to set up the greenfield plant, following protracted negotiations. “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 will invest nearly INR 1 billion to set up the facility, although the exact sum and the production capacity of the unit are yet to be finalized. Company officials confirmed the development but refused to give further details. Asahi India manufactures a full range of automotive safety glass products. The company also makes laminated architectural glass. The auto product range includes laminated windshields, tempered glass for side and back lites, zone tempered glass for windshields, silver printed demister glass, black ceramic printed flush fitting glass and PVC – encapsulated glass. Asahi India“s Haryana plant has a capacity to meet the requirements of 1.2 million cars. The company supplies Udyog, Telco, Mahindra and Mahindra, Honda Siel, Ashok Leyland, Eicher Motors, Hyundai, Ford, Hindustan Motors for Mitsubishi Lancer and Swaraj Mazda. French glass maker Saint Gobain also recently announced plans to expand its factory near Chennai to produce auto glass. The expansion is to meet regional demand from automobile majors as well as supply the export market. In the quarter ended September 2003, Asahi India posted a net profit of INR 184.1 million on a total revenue of INR 1.238 billion.