Hindustan National Glass & Industries Ltd - HNGIL

Summary
� Strategic move by Company to venture into higher margin Float Glass industry with associate HNG
Float Glass (c.47% shareholding)
◊ Proposed to be made a subsidiary
� Indian Float Glass industry has been growing at c.18% CAGR over the last three years
◊ Growth drivers
◊ Low per capita consumption of Float Glass in India of 1.0 kg as compared to 12 kg in
China and 10.4 kg in USA
◊ Growth in real estate and automobile sector in India
� Greenfield expansion in the float glass business by setting up a plant at Halol, Gujarat
◊ Manufactures glass to meet the needs of Construction and Auto sectors
◊ Existing facility is an integrated glass plant having capacity to manufacture toughened,
insulated glasses for architectural and automotive application.
◊ Largest domestic players – well positioned to capitalize on the high growth potential
◊ Capacity: 600 tpd set up at a capex of INR 6 bn
◊ Commenced production in Feb ‟10. Company marketed 16,147 tonnes in FY 2010
◊ Fully positioned to break-even in the first full year of operations – expected to generate
small profit in FY 2011
41