Kolkata-based Hindusthan National Glass & Industries Ltd has entered into a definitive agreement to acquire the container glass manufacturing facility of Germany-based Agenda Glas AG for a total consideration of $71.45 million.
Hindusthan National manufactures container glass products ranging from 5-3,200 ml and caters to liquor, beverages, pharmaceuticals processes, foods and cosmetics industries. The company’s customers include organisations like Hindustan Unilever, GlaxoSmithKline, Nestle, Global Green, Heinz, Dabur, Pfizer, Cipla, Ranbaxy, Himalaya, SABMiller, Asia Pacific Breweries, United Spirits, Pernod Radico, Bacardi, Coca Cola and Pepsi.
“Through this acquisition, we plan to set our foot into the container glass manufacturing segment in the international market and we will also follow a high growth path in the next 3 years. In India, we have been looking at aggressive organic growth through greenfield and brownfield expansions, with an investment of $556 million. Building manufacturing presence in the international market is also crucial to the company’s strategic expansion plans,” said Mukul Somany, vice-chairman and managing director of Hindusthan National.
According to a company statement, its major expansion and capacity enhancement plans include the greenfield Naidupeta plant complex, with a capacity of 650 TPD, and the brownfield expansion at Nasik plant, with a capacity to produce 650 TPD.
Exports to over 23 countries across Europe, the USA, the UAE and Africa constitute a substantial portion of HNG’s $334 million annual turnover. In the domestic market, its total production capacity of 7.85 lakh tonnes in the last fiscal is expected to go up to 12 lakh tonnes in the financial year 2011-12.