St Gobain to set up a new Rs1000 crore float glass plant in Rajasthan
24 Jun 2008
Mumbai: Saint-Gobain Glass India, the country's largest float glass producer, today announced plans to establish a new world-class glass manufacturing plant in Bhiwadi in Rajasthan. The company will invest Rs1000 crore for the plant, which will have a capacity to produce 300,000 tonnes annually. The new plant expected to be functional in 2010, will increase the total capacity of the company to 750,000 tonnes.
The funding mode for the new facility in Rajasthan has not been decided yet, the company said.
Saint-Gobain India, which achieved a turnover of around Rs2000 crore in 2007 plans to expand to a Rs5000 crore business by 2013, when the Bhiwadi plant will reach the level of full capacity utilisation.
The company's existing facility at Sriperumbudur in Chennai has six units comprising two float glass lines, one each of mirrors, automotive, laminated and coating lines. Saint-Gobain had invested Rs1500 crore through equity and a mix of debt and equity in phases to set up the Chennai plant.
Speaking on the occassion of the launch in Chennai, R Santhanam, managing director of St Gobain Glass India stated that the decision to set up the second plant in Rajasthan was mainly due to the fact that north India accounted for a third of the company's sales and the Rajasthan plant would give it a better access to this region. Besides, the company will save on transportation of raw materials, which is currently shipped from the company's existing plant to northern India.
However the company would also plan to expand the Chennai facility in the future, added Santhanam
Santhanam further noted that glass consumption in India is set to rise significantly and will become a key driver in the booming construction sector.Being a completely recyclable product, it will encourage the trend of green building movement.
St Gobain Glass India is part of the Euro 43.4 billion French group St Gobain, which is Europe's largest building material distributor and has 12 wholesale brands in its fold.
