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| HNG Float |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25932 |
| Company name | HNG Float Glass Limited |
| Country | India |
| Sector | Nonmetallic Mineral Product Manufacturing |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | December 20, 2007 |
| Projected board date | January 21, 2008 |
| Previous Events | Invested: June 19, 2008
Signed: March 11, 2008
Approved: February 15, 2008 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The proposed project is to construct and operate a greenfield float glass manufacturing plant by a newly formed company, HNG Float Glass Limited (HNGFG or the company), in Halol, Gujarat state, India with a capacity of 600 tons per day (tpd). |
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| Project sponsor and major shareholders of project company |
| The project sponsor is the C.K Somany Group (the sponsors), who owns Hindusthan National Glass & Industries Limited (HNG), a leading player in the domestic glass container market. The Group has identified float glass as the next area of growth for the future given the current and projected strong demand for float glass in India. |
| Total project cost and amount and nature of IFC's investment |
| Total project cost is estimated at $130 million. The proposed IFC investment consists of an A Loan of up to $20 million and an equity investment of up to $5 million. |
| Location of project and description of site |
| The project is located in Halol in the State of Gujarat, India. |
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| Anticipated development impact of the project |
Expected development impacts of the project include:
- Support capacity increase for a floatglass product, which is technologically superior to sheet glass and which is expected to face supply shortages in the medium term due to continued strong domestic demand growth;
- Contribute to better quality construction and housing sector by providing a technically superior floatglass product, which is not widely used in India;
- Create direct employment and related ancillary economic activities in the Gujarat region; and
- Set high environmental, social and health performance standards, which can be expected to have a positive demonstration effect in the region. |
| IFC's expected development contribution |
IFC will play an important role in providing the necessary financing and technical expertise which will be key for the successful implementation of the project. In this regard, IFC’s additionality will include the following:
- Long-term financing:
IFC will be providing financial support through its long-term loan investment which is not readily available locally and more suited for larger investments.
- Equity financing:
IFC’s equity participation in the company is expected to enhance the company’s visibility.
- Environmental and Social Standard Setting:
IFC’s participation will strengthen the company’s Environment, Health and Safety practices and help the company achieve international standards. |
| Environmental and social issues - Category B |
This is a category B project according to IFC’s environmental and social review procedure because a limited number of specific social and environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environment, health and safety and social aspects of the project were analyzed:
- environment and social assessment, and management systems;
- labor and working conditions including management of employee occupational health and safety; - pollution prevention and abatement (including management of resources including energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes); and
- management of community environment, health, safety and security personnel related impacts, both during construction and operation.
A summary discussion on the social and environmental aspects of relevance to the project including the company’s plans to address these impacts has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC.
Further, the company will locally disclose social and environmental assessment documents at the following location:
GIDC Office, Phase I, Halol GIDC, District - Panchmahal, PIN - 382115, Gujarat, India |
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| For inquiries about the project, contact: |
Mr. Pradeep Tibrewal
HNG Float Glass Ltd.
Deputy General Manager
2, Red Cross Place
Kolkata 700001
India
Telephone:+91 33 22543100
Fax: +91 33 22543130
Or
Mr. Pradeep Tibrewal, Dy. General Manager (Commercial)
25 Kanha, Nisarg Bunglows, Sama Road, Baroda – 390 008
Telephone: 0265 6530112
E-mail: ptibrewal@hngil.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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