“An exceptionally good year” for the glass division of Hindustan Sanitaryware & Industries Ltd (HSIL) has prompted the firm to set up a modern, energy efficient amber glass unit in Hyderabad with a to…
“An exceptionally good year” for the glass division of Hindustan Sanitaryware & Industries Ltd (HSIL) has prompted the firm to set up a modern, energy efficient amber glass unit in Hyderabad with a total investment of INR 800 million. The company“s glass division, which serves pharmaceutical, cosmetic, soft drink, processed food, and liquor manufacturers, contributes almost 55% to the company“s total turnover of INR 3.05 billion. The other division is sanitaryware, which contributes 45% to revenues. HSIL“s new glass manufacturing plant will become operational by September 2004 and will increase the company“s total glass manufacturing capacity to 140,000 tonnes from the current 100,000 tonnes per annum. According to HSIL joint managing director, Sandip Somany, the company has been able to improve the performance of its glass division substantially over the last two years. The division, which made a cash profit only in 2001-02, grew 26.5% during the year 2003-04, he said. Expecting a steady 8-10% growth in the market for glassware products, Mr Somany said “Demand for glass is good, fuelled by an increase in the food, aerated, pharma and packaged food products.” Meanwhile, the company is also looking at acquisitions in the category. “We could look at acquisitions. In fact, we are always on the look out for acquisition of good asset,” Mr Somany said. The company has recently repositioned itself from a ceramics company to a total bathrooms and kitchen solutions company. This follows the company“s decision to expand its product portfolio from bathroom products to kitchen products such as stainless sinks, amongst others.