Hindustan Sanitaryware Approves Rs. 210 Cr. Expansion Plan

The project is to be completed by the 1st quarter of calendar year 2009.

Hindustan Sanitaryware & Industries (HSIL) today said it will expand the capacity of its container glass division by 68 per cent at an estimated investment of Rs 210 crore, (2.1 billion rupees ).
The board of directors have approved the proposal for setting up a new production facility at a different location in Andhra Pradesh.

The new facility would have a production capacity of around 425 tonnes per day.

The project would be funded through additional debt and internal accruals and is expected to be completed by the first quarter of 2009, the company said in a filing to the Bombay Stock Exchange.

The division, which manufactures glass bottles and jars for liquor, pharmaceuticals, food and beverages segments, has current capacity of around 950 million containers per annum and has been operating at full capacity for sometime.

The expansion is a phased programme to move its glass container manufacturing operations from the current location in Hyderabad to the new location.

This move would help to reduce the costs of production as the new location is expected to have access to natural gas and would also free up around 33 acres of land in prime real estate of Hyderabad which be used for other profitable purposes, the company said.