The Hindu : Andhra Pradesh / Hyderabad News : AGI Glaspac to open unit in Bhongir

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Friday, Sep 21, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

AGI Glaspac to open unit in Bhongir

Special Correspondent

The company plans to increase production by 68 p.c with the addition of new plant

HYDERABAD: AGI Glaspac, a Rs. 500-crore strategic business unit of Hindustan Sanitaryware and Industries Ltd, has announced its plans to expand glass container business by setting up a Rs. 210-crore Greenfield manufacturing unit near Bhongir in Andhra Pradesh.

The company already has a Rs. 257-crore manufacturing unit on the outskirts of Hyderabad.

Addressing a press conference here on Thursday, president of the company Arun Kumar Dukkipati said that the company would be increasing its production by 68 per cent with the addition of the new plant, which was expected to generate revenues to the tune of Rs. 200 crore.

The Hyderabad plant accounted for 49.3 per cent of the total revenue of the company.

The new plant would manufacture 650 million containers, including bottles, jars for liquor, beer, pharmaceuticals, food and beverages. The existing unit was making 950 million containers a year.

Investment

The company’s client list included all the major manufacturers of the segments it was servicing.

The plant machinery would be imported from Europe and the investment would be met from internal accruals and debts.

The project would commence production in the first quarter of 2009, said Mr. Kumar.

The six-line bottle making plant would be set up in 72 acres of land which the company had already acquired here, Mr Arun Kumar said.

European container glass manufacturers were being consulted for technology transfer on making light-weight glass containers in the new plant.

While 20 per cent of the current production was being exported, the company was expecting the exports to grow to 35 per cent after commissioning of the new plant, Mr Arun Kumar said..

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