Hindusthan National Glass (HNG), an Indian glass container manufacturer, has initiated a Rs 40-crore capacity enhancement and upgrade plan at its factory in Rishra, West Bengal.
The company has also …
Hindusthan National Glass (HNG), an Indian glass container manufacturer, has initiated a Rs 40-crore capacity enhancement and upgrade plan at its factory in Rishra, West Bengal. The company has also received clearance from Calcutta High Court on 2 August, to go ahead with its proposed rights issue of 36.81 million equity shares of Rs 10 each at a premium of Rs 30 per share on the basis of one equity share for two shares held by the members. The rights issue, which was delayed by one year due to litigation, is now expected to hit the market by November, company sources said. “We are planning to upgrade and expand our capacity at the Rishra plant by setting up a new glass melting furnace with a production capacity of 300 tonnes per day,” said C K Somany, chairman, HNG, after the 53rd annual general meeting, which was held recently. The capacity augmentation will increase HNG“s production capacity by almost 70% to 440 tonnes per day from the current 260 tonne. The company expects the process to be completed within a year. HNG has nearly a 30% share of the over Rs 1,000-crore glass container market. The company has also installed a Rs 15 crore captive power plant at its Bahadurgarh plant in Haryana. This is expected to reduce the cost of manufacturing considerably as the cost of power would come down to Rs 2.95 per unit from as high as Rs 6 per unit during peak hours. The glass container market in the country has been growing at an average rate of 8-10% per annum during the past few years. Exports to the south-east Asian countries faced a setback during 1997-98 due to the economic crisis but the company managed to divert a substantial portion of its orders to Bangladesh and is currently focusing on South Africa and Mauritius. HNG posted a turnover of Rs 183.32 crore in 1998-99, up from the previous year“s Rs 169.76 crore. The net profit had declined to Rs 6.63 crore from the previous year“s Rs 7.79 crore.