India“s Gujarat Glass is targeting the American market following its controversial acquisition of US Flat River Glass, formerly part of New Jersey-based Glass Group.
Gujarat Glass, which submitted a…
India“s Gujarat Glass is targeting the American market following its controversial acquisition of US Flat River Glass, formerly part of New Jersey-based Glass Group. Gujarat Glass, which submitted a high but late bid of USD 18 million, including liabilities, gained the loss-making asset in a US bankruptcy court on 14 October 2005 after a judge reversed his decision granting Austria“s Stlzle-Oberglas the right to buy Flat River Glass. Gujarat is the latest Indian company to buy distressed foreign assets, in contrast to Chinese groups, which are willing to pay high prices in exchange for quick gains in market share. Gujarat Glass has indicated that US manufacturing will not be outsourced to South Asia for at least five years, calming the worries of unions at Flat River. Gujarat says it expects to invest USD 6 million in the next 18 months on new furnaces at Flat River. Gujarat Glass, part of the property-to-pharmaceuticals Piramal group in Mumbai, manufactures 8 million bottles a year for cough syrup, cosmetics, drugs and perfumes and claims to be the world“s largest maker of bottles for nail varnish. Having gained Flat River“s distribution, Gujarat hopes to expand its exports to the US. The deal puts Gujarat Glass among the top global glass manufacturers by volume. “This is a stepping stone for Gujarat Glass – we have access to quality manufacturing techniques and a large customer base,” said Bharat Kewalramani, a director.