Hindusthan National Glass & Industries Ltd, the largest container glass manufacturer in India, is looking for overseas acquisitions even as it plans an investment of Rs 350 crore for brownfield expansion.
Mukul Somany, joint managing director, said HNG is looking at the Middle East, Africa and South East Asia for acquisitions. ?We are looking at companies with a turnover of Rs 300-400 crore and have started initial talks with such companies.”
HNG, which enjoys a market share of 65% in India, is now eyeing overseas acquisitions for a global footprint.
The company registered net sales of Rs 1,311 crore in 2008-09, of which exports to the European, US and the Canadian markets contributed around 8%.
Somany said for HNG, India is now the main market with beer and spirits contributing 55% of the total revenue, food and beverages 15% and pharmaceuticals 15%. The market for glass packaging is set to grow at 15% annually.
HNG has targeted a 20% growth in 2009-2010 to reach a turnover of Rs 1,500 crore. The company has charted long-term growth plans via introduction of narrow neck press and blow technology (NNPBT), which will bring operational efficiencies.
Somany said HNG plans to invest Rs 350 crore by the end of this fiscal, of which Rs 150 crore has already been invested in its Rishra plant and the rest would be invested in its Bahadurgarh and Nasik plants to ramp up capacities as well as introduce NNPBT.
After ramping up capacities in its three plants, the company will produce 1 million tonnes of bottles a year across all categories from its six plants, up from its present production of around 8 lakh tonnes a year.
HNG has facilities at Rishra in West Bengal, Bahadurgarh in Haryana, Nasik in Maharasthra, Neemrana in Rajasthan, Pondicherry and Rishikesh in Uttaranchal.