Indian Hindusthan National Glass & Industries Ltd (HNG), with more than 60% dominant market share in glass packaging and a turnover of Rs 1500 crore, has signed a joint venture with Belgium based glob…
Indian Hindusthan National Glass & Industries Ltd (HNG), with more than 60% dominant market share in glass packaging and a turnover of Rs 1500 crore, has signed a joint venture with Belgium based global leader in mould manufacturing OMCO International NV. As per the venture, OMCO and HNG will have a 50:50 sharehold and will jointly set up and operate mould manufacturing facilities in India for the design, manufacture, marketing and sales of moulds for glass packaging products such as beverages, liquor, food, pharmaceutics and cosmetics, under the name of OMCO HNG Engineering Ltd. The first plant is scheduled to be set up in Pondicherry with an estimated investment of Rs. 35 crore, and will be equipped with state-of-the-art foundry and CNC machines to match global standards. The plant, which will have an initial capacity of 4,000 moulds per month, is expected to be operational by September 2010. Mukul Somany, joint managing director at HNG said, “The joint venture is a stride by HNG towards becoming the complete glass packaging solutions provider globally by strengthening its backward integration. It is a great opportunity for us to partner with world“s leading mould manufacturers for their technical expertise and special designs.” He further added, “Today the Indian glass packaging industry is growing at 7-8% annually and poised to grow at 12-15% over the next 10 years. It is riding high on its user industries especially the liquor and beer sector, which is growing at a rate of 12%. With our decades of experience and knowledge of Indian market combined with expertise of our partner OMCO, we are looking forward to many successes as we sign this agreement.” J. C. Seynaeve MD & CEO of OMCO said, “The glass container market is thriving in India and we aim to bring specialized designs for the big brands in the country.” He further added, “We are extremely excited to form the joint venture with HNG. HNG today is the leader in the Indian glass market through their constant innovation, world class manufacturing technologies and best in class services to the Indian market. By combining our expertise on designs and technology we hope that we will be able to deliver the best in class products in the national as well as international market at competitive prices.”