Hindustan National Glass buys Germany’s Agenda
13 May 2011
Kolkata-based Hindusthan National Glass and Industries, India's largest glass-container manufacturer, has made its first overseas purchase by buying Germany's Agenda Glas AG for €50 million (Rs321 crore).
The amount is to be paid over a year, the company said in a release. The firm is to be acquired by a wholly owned subsidiary, HNG Global GmbH.
The 'asset deal' as it is termed includes an acquisition price of €40 million and an investment in the plant, Mukul Somany, vice-vhairman and managing director of HNG, said. The funding would be through debt and equity.
Hindustan National bought the bankrupt Agenda Glas through an auction. It said in the release that the German company, which began commercial production in February 2010, faced bankruptcy within a year, and its assets were being acquired by HNG Global.
Hindustan National has a 55 per cent share of the Indian glass-container market, and aims to become one of the world's top 15 companies in the business.
Agenda Glas currently has a production capacity of 320 tons per day against Hindusthan National's capacity of 2,825 tons spread across six factories. Agenda Glas' key customers are alcoholic beverage makers.