Hindusthan National Glass Industries Ltd. (HNGIL) will invest up to INR 5,000 crore over the next five years to set up new facilities and expand existing capacity. Total production capacity in the las…
Hindusthan National Glass Industries Ltd. (HNGIL) will invest up to INR 5,000 crore over the next five years to set up new facilities and expand existing capacity. Total production capacity in the last fiscal was 9.40 lakh tonnes, and the company said it expects to reach 12 lakh tonnes in 2011-12. “We are looking to invest nearly INR 5,000 crore to set up a greenfield facility and also to augment capacity in the existing plants,” HNGIL President R.L. Khandelia said. HNGIL has plants at Bahadurgarh, Haryana; Nashik, Maharashtra and Neemrana, Rajasthan, and is setting up a new one at Naidupeta in Andhra Pradesh. The new facility, which will be located in Rajasthan, Haryana or Madhya Pradesh, will cost about INR 2,500 crore to set up. “We are looking for about 500 acres of land and are in talks with the governments in these three states and wherever we find the land we will set up the new facility,” Khandelia said, adding that the new plant will have three manufacturing container glass units and two for float glass. Capacities at existing facilities are also being enhanced, Khandelia said. “We have already spent INR 160 crore at Bahadurgarh for equipment and machines in the last fiscal. This year we plan to spend another INR 160 crore in this facility,” he added. At present, production at the Bahadurgarh plant is 2 lakh tonnes per annum, which will reach 3.1 lakh tonnes by 2012. The company is also increasing the capacity of its Nashik plant with an investment of INR 500 crore, which will go from 400 tonnes per day to 1100 per day by March 2012. The Neemrana plant will also increase production capacity to 650 tonnes per day by April 2013 from the current 200 tonnes per day, thanks to an investment of INR 500 crore. A new plant at Naidupeta in Andhra Pradesh will involve an investment of INR 650 crore, and is expected to be operational by March 2012 with a capacity of 750 tonnes per day. HNGIL posted net sales of INR 1,545 crore last fiscal and has forecast INR 2,200 crore this fiscal. “We are looking at a healthy growth rate of 12-15% in the next couple of years,” Khandelia said.