Calcutta, June 3: Hindustan Sanitaryware & Industries Ltd (HSIL) is substantially expanding its glass and sanitaryware capacities this year. In glass, the company is a major player in the South with a market share of 28 per cent while in sanitaryware, its market share has increased to 42 per cent after the acquisition of Raasi Ceramics.According to its executive director GL Sultania, the company is going to increase the capacity of the glass plant by installing a new oil-fired furnace of 250 tonnes per day (tpd) capacity which can produce up to 300 tpd.
The expansion project is estimated to cost Rs 80 crore, out of which the company has already spent Rs 14 crore. About Rs 12 crore was spent on a 4.2mw heavy oil-based captive generating set at the Hyderabad glass plant.
Sultania said that production of bottles from the expanded capacity was likely to commence from December 1999. The company is also increasing its capacity for manufacture of decorative bottles for leading soft drink manufacturers.
Theproduction capacity of sanitaryware at the company's Bibinagar plant in Andhra Pradesh has increased from 6,000 tonnes per annum (tpa) to 12,000 tpa. In 1999-2000, the company hopes to achieve a production level of 11,000 tpa there while the Bahadurgarh sanitaryware unit is expected to achieve 100 per cent capacity utilisation with production of 14,000 tpa, according to Sultania.
Raasi Ceramics, which the company acquired at a cost of Rs 24 crore, is expected to achieve a production level of 6,000 tpa within two months. Its capacity was being increased to 12,000 tpa which would be available from next year, Sultania disclosed.
He said that an addition to the capacity of the Raasi plant would be done with the installation of balancing equipment and a refired kiln. He added that the cost of expansion would not be much.
The company is also installing a new generating set of 2mw at Bahadurgarh which will become operational by the end of July this year and result in savings of Rs 12.5 lakh per month afteraccounting for interest and depreciation costs.
In the year to March 31, 1999, the company's sales (including excise) has increased to Rs 163.88 crore from Rs 131.72 crore. Profit after tax increased to Rs 13.59 crore from Rs 11.96 crore. The board has recommended a dividend of Rs 4.50 per share (45 per cent) as against Rs 4.00 (40 per cent) paid in 1997-98.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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