HSIL sells glass making unit AGI Glasspack

HSIL Ltd, a sanitary ware and glass manufacturing company, has sold its entire stake in wholly owned arm AGI Glasspack Ltd to an unnamed buyer, as per a stock market disclosure. The terms of the deal was also not disclosed.

The public listed company’s glass division is housed under a strategic business unit AGI Glaspac, as per its website. The company claims this is the second largest producer of container glass in the country, commanding a market share of 22 per cent as of FY12. As per HSIL’s annual report, AGI Glaspac is also the biggest player in South India with 74 per cent market share, operating at near-100 per cent levels.

It manufactures glass containers such as chemical bottles, beer bottles, jars, personal care product bottles etc. The container glass unit saw revenues rising 31.21 per cent to Rs 788.4 crore with EBIT improving almost 32 per cent to Rs 108.63 crore during the year ended March 31, 2012. Container glass unit comprised over half of the parent company’s revenues. However, only a part of container glass business was under the subsidiary AGI Glasspack Ltd.

The firm also has a separate subsidiary Garden Polymers which is into PET bottles.

HSIL scrip last traded at Rs 90.1 a share, down 3.3 per cent on the BSE in a weak Mumbai market on Monday.

Kolkata-based HSIL Ltd (formerly Hindustan Sanitaryware & Industries Ltd) is a sanitary ware manufacturing company which offers products like sanitary ware, faucets, wellness products and kitchen appliances. The firm exports its products to Pacific Island, South America, UK, Middle East, Latin America, Africa, Russia, Australia and New Zealand, and offers its products under the Hindware, Evok, Keramag, and Raasi Ceramic’s brand names.

In January this year, Henderson Equity Partners exited HSIL with 2x returns. The private equity firm sold most of its 8.8 per cent stake in sanitary ware products maker for Rs 67.82 crore.

(Edited by Prem Udayabhanu)

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