Hindustan National Glass targets Indian, foreign acquisitions

Hindustan National Glass and Industries (HNGI), India“s largest player in the container glass industry, is considering more acquisitions in the country and overseas to expand its footprint.
“We are …

Hindustan National Glass and Industries (HNGI), India“s largest player in the container glass industry, is considering more acquisitions in the country and overseas to expand its footprint. “We are very keen on acquisitions in India. We are also looking for acquisitions abroad to increase our footprint overseas. However, we are yet to identify any target”, Hindustan National Glass and Industries assistant vice president Sanjay Jain revealed. Sources, however, said that HNGI was looking to acquire companies which can produce at least 250-300 tonnes of glass a day and targeting overseas acquisition in countries like Indonesia, Thailand, Malaysia and Egypt. HNGI, which currently makes 2,575 tonnes of glass a day, has six manufacturing facilities in Rishra (near Kolkata), Bahadurgarh in Haryana, Rishikesh, Neemrana in Rajasthan, Nashik in Maharashtra and Pondicherry. Barring the two in Bahadurgarh and Rishra, all other facilities have joined the company through acquisitions. It had bought the Pune (now closed), Pondicherry and Rishikesh facilities from Owens Brockway in 2001-02, the Nashik facility joined through the acquisition of L&T Glass Works in 2004-05 and the Neemrana plant from Chandigarh Sheet Glass next year. Mr. Jain added: “We are not looking for mere capacity addition. We are targetting companies which will bring in the right product-mix and a good market to cater to among others”. HNGI exports around 12% of total output. The company had recorded INR 11.48 billion total income from sales in the last fiscal period, which is likely to exceed INR 15 billion in the current fiscal, Mr. Jain said. HNGI is currently rebuilding a furnace in Rishra with an investment of INR 1.2 billion and has plans to carry out the rebuilding of two furnaces in the Bahadurgarh facility with an outlay of INR 2.2 billion. Mr. Jain said that the company expects double-digit growth in sales in the next five years buoyed by increased consumption in the country, the growing culture for ready-to-use foods and high demand from the pharma, food and beverages sectors.