IFC Finances Clean, Energy Efficient Float Glass Production for HNG in India
In New Delhi:
Minakshi Seth
Phone: +91 11 4111 1058
E-mail: mseth@ifc.org
In Washington, D.C.:
Carmen Powell
Phone: +1 (202) 473-4982
E-mail: cpowell@ifc.org
Kolkata, India, July 7, 2008—IFC,
a member of the World Bank Group, will help HNG Float Glass Ltd set up
a state-of-the-art plant in Halol in the Indian state of Gujarat. The plant
will produce 600 tons of energy-efficient float glass daily, helping meet
demand from the construction and automotive sectors, while creating new
jobs and developing local supply chains.
IFC will invest up to $25 million in
loan and equity in HNG Float Glass, a company set up by C. K. Somany Group.
Hindusthan National Glass and Industries Ltd is the flagship company of
the group. The project is also supported by DEG, with an investment of
$12.5 million.
“Partnering with IFC allows us to leverage
its global expertise to help improve our competitiveness and social and
environmental practices,” said Mukul Somany, Joint Managing Director of
HNG. “This has enabled us to optimize the project’s design. It is also
commendable to see the efficiency with which IFC executed this transaction,”
he added, noting that he looks forward to a long-term partnership with
IFC.
“Our investment will provide long-term
funding and equity to HNG Float Glass Ltd. and help it enter a new market
segment in India that has tremendous growth potential as it introduces
cleaner technology, better energy efficiency, and superior quality,” said
Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
Float glass is technically superior
to sheet glass, with more safety features and better energy efficiency.
It reduces the energy consumption needs of buildings and helps reverse
the effects of climate change. This project will also implement environmentally
sound natural gas technology, substantially lowering emissions versus older
furnace oil technology.
The float glass industry in India remains
small, but it is growing rapidly with an increase in demand from the construction
and automotive sectors. The availability of quality float glass is critical
to the country’s construction sector, which relies on supply to build
modern residential and commercial buildings. It is also important
for the automotive sector, which is expected to continue growing. This
will create a supply gap for float glass in the next few years. The new
plant will produce goods to meet this demand, while creating jobs and additional
opportunities as local supply chains deepen.
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
About Hindusthan National Glass and
Industries Limited
HNG is a leading manufacturer of glass
containers, with a domestic market share of 67 percent. It has decided
to embark on a greenfield project to diversify into float glass. The
company is owned by the C.K. Somany group headquartered in Kolkata. It
will be the first local company to enter the Indian float glass market.
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