Turkish Glass maker Trakya Cam Snayii AS bought a 45 per cent stake in HNG Float Glass Limited (HNGFL) through a joint Venture (JV) agreement on Friday.
According to the JV, Hindustan National Glass and Industries (HNGIL), the share-holding company in HNGFL and its promoter, the Somany family, will now dilute their stake in HNGFL.
Currently, HNGIL and the Somany family hold 47.4 per cent and 40.2 per cent stake in HNGFL, respectively and the remaining 12 per cent is held by IFC Washington.
Post-JV, Trakya Cam Snayii AS will become an equal shareholder in HNGFL for an undisclosed amount. IFC Washington will continue to hold 10 per cent stake (about 10 per cent of the increased paid up capital). The share-holding of HNGIL will stand diluted from the present 47.4 per cent to 15 per cent.
When contacted, HNGIL chairman C K Somany refused to comment on the value paid by the Turkish glass maker for this JV.
HNGIL is one of India’s leading glass manufacturers, with a total production capacity of 4,300 tonnes per day. It had promoted HNGFL in 2006. Trakya Cam Sanayii AS, which was founded by Sisecam in 1978, is the leading company in the flat glass market in Turkey and a pioneer in the region. The company reached $751 million net sales with 2,768 employees in FY 2011.
Trakya Cam Sanayii AS had taken a strategic step in 2009 with the decision to jointly develop its flat glass activities with Saint-Gobain, one of the biggest companies in the industry.
HNGFL is engaged in the business of manufacturing float glass and related value added float glass products.
The company’s plant is located in Halol, Gujarat with the current capacity of the furnace being 600 tonnes per day.
