10 September 1998: Hindustan National Glass (HNG), a C.K. Somany company, has reportedly engaged in the glass container business, and has drawn up an expansion-cum-modernisation plan estimated at Rs 3…
10 September 1998: Hindustan National Glass (HNG), a C.K. Somany company, has reportedly engaged in the glass container business, and has drawn up an expansion-cum-modernisation plan estimated at Rs 34 crore to be funded through a mix of term loans and a rights issue, a recent press report has said. HNG, one of the key players in the glass bottles, vials and tumbler industry in India, will reportedly upgrade both its factories at Rishra in West Bengal and Bahadurgarh in Haryana. “The proposed expansion plan envisages setting up a 6.2 MW power generating set costing Rs 15 crore at the Bahadurgarh plant. This will help bring down energy cost significantly besides ensuring a continuous supply of quality power,” said Mr. C.K. Somany, chairman of HNG. The Rishra plant of the company will be upgraded at the cost of Rs 6.6 crore, which includes expansion of the production capacity from 6,500 tonnes a year to 8,500 tonnes. Another Rs 9 crore is to be invested at the Bhahadurgarh factory in sophisticated and hi-tech equipment for enhancing quality to international standards. The rest of the amount will be spent on balancing equipment at the two factories, the report said. To part-finance the projects, HNG is reportedly planning to enter the capital market with a rights issue of Rs 14.7 crore, although the timing of the capital raising exercise is yet to be decided. The remaining funds will be raised from financial institutions, according to the report. In the first quarter of 1998-99, the company reported a loss of around Rs 90 lakh. “The loss reflects the seasonal trend in demand for the products and is not an indicator of a downtrend for the full year. We hope to end 1998-99 on a higher level of sales and profits compared to 1997-98,” Mr. Somany said.