HNG plans to increase its capacity to 1,600 tonnes a day
HNG Float Glass Ltd, an associate company of Hindustan National Glass & Ind Ltd (HNG), a glass container manufacturer, may raise Rs500 crore of debt to expand its manufacturing capacity, Mukul Somany, HNG's vice-chairman and managing director said.
According to him, the present production capacity of 600 tonnes a day will be increased to 1,600 tonnes a day.
"It requires a Rs750 crore investment. It will be a mix of debt and internal equity. Debt will be close to 60% to 65%. We will decide (on) how to raise the debt in a month or two," Mr Somany said.
HNG Float Glass has a manufacturing unit at Halol, near Vadodara, which started commercial production of float glass last year. A memorandum of understanding on expansion was inked by the company with the State Government at the Vibrant Gujarat Summit. The project is scheduled for completion in 2013-14.
Mr Somany said that this year, revenues may touch Rs1,650 crore with Rs120 crore to Rs140 crore bottom-line.
Last year, the company clocked a turnover of Rs1,371 crore with a net profit of Rs155 crore.
Saying that the company has the intention of setting up a 150- to 200-megawatt power plant, he said that "Power is one of the key inputs in the process of glass-making."
Hindalco has reported a net profit of Rs427 crore in the December 2009 quarter
Aluminium producer Hindalco Industries has said that its net profit grew by 8% to Rs460 crore for the quarter ended 31 December 2010, as it earned better margins from higher prices of the metal.
The company had posted a net profit of Rs427 crore during the corresponding quarter of the last fiscal, it said in a statement.
Net sales of the company were up by 12% at Rs5,975 crore during the quarter compared to Rs5,314 crore, reported in Q3 of 2009-10.
An industry leader in aluminium and copper, it lost Rs200 crore during the quarter as two of its aluminium smelters were shut down due to heavy rains for six months (from July to December 2010).
"In both the cases, necessary steps for insurance claims have been initiated under the company's comprehensive insurance policy, covering property damage and business interruptions," the statement added.
The statement further said that revenues from copper were higher, but rising input costs and lower processing charges impacted the profits.
Cathode output fell 10% during the quarter due to the breakdown of a cooling tower, it added.
Similarly, its total alumina production was 6% lower during the quarter on back of its scheduled maintenance shutdown at its Renukoot plant.
Hindalco also re-financed a $1.7-billion loan, which was borrowed to buy American aluminum can maker Novelis Inc, the statement added.
On Monday, Hindalco ended 3.88% up at Rs219.40 up on the Bombay Stock Exchange, while the benchmark Sensex closed 2.67% up at 18,202.20.
Products manufactured at Tata Lockheed Martin Aerostructures will form a key aircraft structure, which will be integrated and complete for its global C-130 aircraft customers
Tata Advanced Systems Ltd, a unit of Tata Sons, has set up a joint venture with US-based Lockheed Martin Corp to make aerostructures for Lockheed's C-130 aircraft in India, the companies said in a statement. They, however, did not provide financial details.
The companies said that their joint venture facility at Tata Lockheed Martin Aerostructures would be export oriented and that the products manufactured would form a key aircraft structure that Lockheed Martin will integrate and complete for its global C-130 aircraft customers.
Ratan Tata, chairman, Tata Sons, said, "We are very proud of our association with Lockheed Martin and believe that it will raise the level of capability of the aerospace industry in India, as also complement the efforts of our defence public sector undertakings."
"This partnership is established as a strategic element of our global supply chain and solidifies our presence in India. We are confident it will enhance long-term competitiveness of the C-130 and assure its production for decades to come," said Ralph D Heath, executive vice-president in charge of Aeronautics, Lockheed Martin.