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HNGIL, HNGFL enters into JVA with Trakya Cam Sanayii AS of Turkey

11 Jan 2013 Evaluate

Hindustan National Glass & Industries (HNGIL) together with other promoters of HNG Float Glass (HNGFL) has signed a Joint Venture Agreement (JVA) with Trakya Cam Sanayii AS of Turkey (Trakya). With this JVA, shareholding of the company and the other promoters of HNGFL (HNG group) shall, reduce from approximately 87.6% currently to approximately 45% and Trakya will become an equal shareholder by about 45% shareholding in HNGFL.

IFC, Washington will continue to hold the balance stake of about 10% of the increased paid -up capital in HNGL. The shareholding of HNGIL, post the consummation of the proposed transaction, shall stand diluted from present 47.4% to about 15% in HNGFL. The way forward on the said JVA is now for all the parties to comply with the ‘conditions precedent’, seek all customary approvals and then consummate the transaction.

In the year 2006, HNGIL and Promoters of HNGIL i.e., Somany family had promoted HNG Float Glass (HNGFL). HNGFL is engaged in the business of manufacturing float glass and related value added float glass products in India. As on date, HNGIL’s stake in about 47.4%, Somany family owns about 40.2% and IFC, Washington has the remaining about 12.4%.

Hindustan National Glass & Industries is the largest manufacturer of glass containers in India. HNIGL has a production capacity of about 4300 tonnes per day (tdp) through 13 furnaces and 58 production lines across seven plants in India. 

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