HNG Float Glass Ltd., part of the HNG Group, is setting up the world’s largest 1,000 tonne per day furnace at Halol, in Gujarat, India, and expects to achieve financial closure for the expansion project by March 2012.
HNG Float Glass Ltd., part of the HNG Group, controlled by CK Somany, has announced that it will firm up the technology for setting up the world’s largest 1,000 tonne per day furnace at Halol, in Gujarat, India, this month.
The company expects to achieve financial closure for the INR 850-crore brownfield expansion project by March 2012.
Incorporated in 2006, HNG Float currently operates a 600-tpd furnace at Halol and controls 20% of the expanding float glass market in the country.
The new technology – to be developed in-house using available solutions – will be 8% more cost efficient than the company’s existing furnace, according to Mukul Somany, vice-chairman and managing director of Hindusthan National Glass and Industries Ltd. (HNG).
“We have an existing tie-up with the US-based Toledo Engineering Company (TECO). We are planning to blend the American, German and our own technology to create a hybrid one which will be most efficient in terms of energy consumption,” Somany said.
The flagship company of the group holds 45% stake in HNG Float, with IFC Washington holding a 13% stake, and the rest held by the Somany family.
“This (the new technology) will give us a sustainable cost advantage,” Somany pointed out.
With regards to the impact of rise in input costs on the estimated budget of the project, Somany said, “Input costs and depreciating rupee might lead to a slight escalation in the project cost. However, the broad indication of INR 850 crore will be maintained.”