Hindusthan National Glass (HNG), a player in the packaging industry and glass container manufacturer, on Thursday announced that it is acquiring Agenda Glas, of Gardelegen, Germany, for euro 50 million (R321 crore).
The acquisition will be completed over a period of time and act as a stepping stone to the company?s global growth plans. It will drive HNG?s vision of becoming one of the top 15 global glass packaging companies. Agenda Glas went into bankruptcy proceedings in February 2011 and its assets are being acquired by HNG Global (a 100% subsidiary of HNG) through an international bidding process.
Sources in the know told FE that Agenda has a manufacturing capacity of 320 tonnes a day and caters to the huge German market as well as other European countries.
In addition to the acquisition cost, HNG is likely to invest $5 million to $10 million euro into the German company towards capital expenditure as well as for other purposes.
The acquired company?s new facility caters to the alco-bev segment and had started its commercial production in February 2010.
This acquisition will be funded by a combination of debt and equity. Agenda is said to have around 150 employees, the sources added.
Mukul Somany, vice-chairman and managing director, HNG, said, ?Through this acquisition, we plan to set our foot into the container glass manufacturing segment in the international market and we will also be following a high growth path in the next three years. In India, we have been looking at aggressive organic growth through greenfield and brownfield expansions with an investment of R2,500 crore. The inorganic growth in building up manufacturing presence in the international market is also crucial to the company?s strategic global expansion plans and vision to becoming one of the top 15 global glass packaging companies.? Exports to over 23 countries in Europe, the US, UAE and Africa are contributing substantially to HNG?s R1,500 crore annual turnover.
HNG Global GmbH will enhance HNG?s technical capabilities in terms of advanced technology and production processes, enabling the company to penetrate into European market, one of the largest markets with food and alco-bev industries as major demand drivers.