Hindusthan National Glass and Industries Ltd. is reportedly in talks with a European multinational to sell a minority stake, with plans to form a strategic partnership for global expansion. India“s l…
Hindusthan National Glass and Industries Ltd. is reportedly in talks with a European multinational to sell a minority stake, with plans to form a strategic partnership for global expansion. India“s largest glass bottle manufacturer is said to be divesting part of its 16.76% treasury stock, which was created in 2002 when it merged with Owens Brockway India Ltd. and which is made up of shares that are held by the issuing corporation and are available for resale. Senior vice-president and chief financial officer Laxmi Narayan Mandhana declined to name the potential stake buyer or share other details of the deal under negotiation. This strategic stock divestment to the multinational company would help both the companies to tap the complementary strengths, and become an undisputed leader in the world glass packaging market, he said. US private equity firm Sequoia Capital acquired a stake of at least 7% in Hindusthan National Glass in June this year. The firm has begun a capacity expansion drive by setting up two new manufacturing plants, which will create additional capacity of 1,300 tonnes per day (tpd), in Andhra Pradesh and western India. Our strategic stake sale is not exactly to raise money, but to expand the business with a strong global footprint by exploring the capabilities of the multinational partner, and our own strength, Mandhana said. Hindusthan National Glass, leader in its segment with a domestic market share of 55%, is also exploring acquisition opportunities overseas, in markets such as Europe and Africa. The company earns almost 95% of its revenue from its local business. We are in exclusive discussions for acquiring two companies, one in Southeast Asia and the other in Europe. The two acquisitions together could cost around INR 550 crore, said joint managing director Mukul Somani.