Hindusthan National Glass Industries Ltd today said it plans to invest up to Rs 5,000 crore in the next five years to set up new facilities and expand existing capacity.
The firm, which had a total production capacity of 9.40 lakh tonnes in the last fiscal expects it to go up to 12 lakh tonnes in 2011-12.
"We are looking to invest nearly Rs 5,000 crore to set up a greenfield facility and also to augment capacity in the existing plants," Hindusthan National Glass Industries Ltd (HNGIL) President R L Khandelia told PTI.
HNGIL currently has plants at Bahadurgarh in Haryana, Nashik in Maharashtra and Neemrana in Rajasthan. It is also setting up a new one at Naidupeta in Andhra Pradesh.
The company plans to invest Rs 2,500 crore to set up a new facility, for which it its scouting for a location in Rajasthan, Haryana and Madhya Pradesh.
"We are looking for about 500 acres of land and are in talks with the governments in these three states and wherever we find the land we will set up the new facility," he added.
He said the new plant will have three manufacturing container glass units and two for float glass.
The capacities at the existing facilities are also being enhanced, Khandelia said.
"We have already spent Rs 160 crore at Bahadurgarh for equipment and machines in the last fiscal. This year we plan to spend another Rs 160 crore in this facility," he added.
At the moment the Bahadurgarh plant produces 2 lakh tonnes per annum which will go up to 3.1 lakh tonnes by 2012.
Besides. the company is also increasing the capacity of its Nashik plant from the current 400 tonnes per day to 1100 per day by March 2012 with an investment of Rs 500 crore.
The Neemrana plant will see production capacity hiked to 650 tonnes per day by April 2013 from the current 200 tonnes per day for which HNGIL is investing Rs 500 crore.
Besides, the company is in the process of setting up a new plant at Naidupeta in Andhra Pradesh with an investment of Rs 650 crore. The unit with a capacity of 750 tonnes per day is expected to be operational by March 2012.
A leading glass manufacturer, HNGIL had posted net sales of Rs 1,545 crore last fiscal and it is eyeing Rs 2,200 crore this fiscal.
"We are looking at a healthy growth rate of 12-15 per cent in the next couple of years," Khandelia said.
Hindusthan National Glass Industries Ltd scrips were trading at Rs 223.30 per share on the BSE in the late afternoon trade, up 6.84 per cent from the previous close.
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