Mumbai: Hindustan Sanitaryware & Industries (HSIL) said on 17 September it will expand the capacity of its container glass division by 68% at an estimated investment of Rs210 crore.
The board of directors has approved the proposal for setting up a new production facility to increase its container glass division at a different location in Andhra Pradesh, at an estimated cost of Rs210 crore.
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 a year 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 cut the cost of production as the new location is expected to have access to natural gas and would also free up about 33 acres of land in prime real estate of Hyderabad which be used for other profitable purposes, the company said.