France“s Saint-Gobain recently signed a memorandum of understanding (MOU) with the Tamil Nadu government regarding the construction of a float glass plant in India. This would reportedly be the Frenc…
France“s Saint-Gobain recently signed a memorandum of understanding (MOU) with the Tamil Nadu government regarding the construction of a float glass plant in India. This would reportedly be the French company“s third undertaking in the country and its first in the south. The proposed project is to be undertaken in joint venture with the Indian glass operation Gujarat Guardian, which has an affiliation with Guardian of the United States, and Floatglass India Ltd., which is itself a joint venture between Asahi Glass of Japan and the Birla Group of India. According to the terms of the MOU, the partnership will invest US$ 150 million in order to build the factory. However, Saint-Gobain is expected to hold a 90% stake in the venture. The proposed state-of-the-art plant is to be sited at Irungattukottai. According to Jacques Aschenbroich, Saint-Gobain“s President (Float Glass Division), although at present the Indian per capita consumption of float glass only amounts to 0.4 kg, compared to 5 kg in China, the market has been forecasted to grow by 15-16% per annum as a result of demand coming from the construction, automobile and other sectors. Product output is to consist of a range of clear, tinted and coated float glass. Plant start-up is scheduled for some time around the end of 1998. According to Anand Mahajan, Saint-Gobain“s Indian delegate, his company is also assessing other investment areas such as container glass and bottles as well as reinforced glass fibres.