VK Modi Group to set up float-glass unit in MP

The VK Modi group is mulling over setting up a float-glass unit in Madhya Pradesh.

The company might set up the unit with its equal joint venture partner Gujarat Guardian Ltd, and the investment may go up to Rs 750 crore, said a source.

Gujarat Guardian Ltd manufactures "MODIGUARD" glass products, including float-glass, laminated-glass and ultra mirrors.

"The company has almost given a final shape to the plan to set up a float-glass unit in Gwalior, with an investment of Rs 700 crore," a top government official told Business Standard.

He said, "The company is likely to come up with the formal proposal to set up the unit at Malanpur or at the newly proposed special economic zone in the Counter Magnet city. We are in talks with them, and are following up the matter with the company's top executives. They are likely to initiate the formal proposal within a fortnight."

Though much detail about the investment is not available, the capacity of the new plant is likely to be 350,000 tonnes per annum, according to the official. Gujarat Guardian Ltd already has a plant in Bharuch, Gujarat, with 175,000 tonnes per annum of float-glass capacity, and 36,000 tonnes of mirror capacity.

Modi's partner, Guardian Industries Corporation, is a global leader in float-glass and other value-added glass products. The firm has 22 manufacturing units, and 40 glass fabrication plants spread all over North America, Europe and Asia.

"Modi's new plant is also likely to manufacture laminated glass, a specialised area, since new generation automobiles use it," said the official. "The plant will cater for the domestic market, as well as global markets," he added.

Laminated safety glasses have applications in various other sectors, including real estate, where facades with such specialised glass provide aesthetic value to modern building. These glasses also reduce energy consumption and protect the structure from damage caused by high temperature.

The state government has recently sought a special economic zone status for the Counter Magnet City in Gwalior. During the previous stint of the Congress government, the Counter Magnet city was planned to be a favourite destination for information and technology companies.

But there are few takers for the proposed SEZ. The Malanpur industrial area has recently attracted an investment of Rs 850 crore from television picture tubes, and computer monitors from Hotline. "The first phase of the company (Hotline) has been completed and it has started production," said the officials.