HNG Float Glass plans to raise Rs 500 cr for expansion

HNG Float Glass, an associate company of country's largest glass container manufacturer Hindusthan National Glass & Industries, today said it may raise Rs 500-crore debt to expand its manufacturing capacity.

With the capital infusion, the present production capacity of 600 tonnes per day will be increased to 1,600 tonnes per day, HNG VP and MD Mukul Somany told PTI.

"It requires Rs 750 crore investment. It will be a mix of debt and internal equity. Debt will be close to 60 to 65%. We will decide how to raise the debt in a month or two," Somany said.

HNG Float Glass has a manufacturing unit at Halol, near Vadodara, which started commercial production of float glass last year. A memorandum of understanding (MoU) on expansion was inked by the company with the Gujarat government at the Vibrant Gujarat Summit.

 

The project is scheduled for completion in 2013-14.

He said this year the revenues may touch Rs 1,650 crore with Rs 120 to 140 crore at bottomline.

Last year, the company clocked a turnover of Rs 1,371 crore with net profit of Rs 155 crore.

The company plans to set up a 150-200 MW power plant, he said, adding power is one of the key inputs in the process of glass making.

"We want to arbitrage the cost of power by setting up a power plant of 150 to 200 mw, because of the kind of power consumption that we have. We are studying appropriate state to set up the power plant. We will take a decision in two to three months' time, and plant setting-up will take 30 to 32 months," Somany said.

HNG is setting up the largest integrated glass complex in the country with an outlay of Rs 4,000 crore at Naidupet in Andhra Pradesh.

The project, spread over 210 acres, will have five furnaces; three furnaces to manufacture glass containers and two to make float glass used in architecture and interior decoration.

"In the first phase we are investing Rs 700 crore to set up 650-tonnes per day glass container manufacturing unit. Second phase is yet to be finalised. The whole facility will house three glass container furnaces and two float glass furnaces. We will start the second phase after this facility starts production in somewhere March 2012," he said.

The total manufacturing capacity of the company at present is 2,875 tonnes per day.