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World Bank private equity arm International Finance Corporation has invested $12 million for an undisclosed equity in fibre glass maker Owens Corning India Ltd (OCIL). The capital will be used to expand its manufacturing facility in Maharashtra.

OCIL is a joint venture between Owens Corning USA, which owned 78.5 per cent, and Mahindra & Mahindra, which owned 21.5 per cent stake. Owens Corning is the inventor as well as world’s leading glass-fiber manufacturer, while M&M is India’s leading manufacturer of utility vehicles and tractors in India.

The company is expanding its facility in Taloja near Mumbai from 36,000 tons per annum (tpa) to 51,500 tpa at a cost of $39 million. The demand for glass-fibre in India is expected to increase by 18 per cent a year over the medium term, driven by growing infrastructure and automotive sectors, IFC said in a release.