AGI Glaspac to up investments in Telangana
Industry-friendly policies and stability of government is enabling growth, says management
Hyderabad: AGI Glaspac, packaging products arm of HSIL, is going for a major expansion by setting up a greenfield facility to make specialty glass at Bhongir, Telangana with an investment of Rs 220 crore. The unit that will be commissioned by early 2022 will generate 4,000 jobs. The company has so far invested Rs 1,500-1,600 crore in its facilities in Telangana and is keen to invest further, driven by the ecosystem enabled by the State government.
The specialty glass facility will have a manufacturing capacity of 154 tonnes per day and five manufacturing lines spread across 15 acres. The company will focus on exports to the US, Australia, and a few markets in Europe. The plant will cater to high-end pharmaceuticals including vials, perfumery, cosmetics and other segments.
The company has two manufacturing facilities, one at Moti Nagar Hyderabad and the other at Bhongir engaged in the manufacture of glass containers for the packaging needs of food, pharmaceuticals, soft drinks, spirits, and other beverage industries. The company which established its Bhongir facility in 2009 saw further expansion in 2012. The company currently has a capacity of 1,000 tonnes of soda ash glass per day in its existing Bhongir unit.
Rajesh Khosla, president & CEO, AGI Glaspac, told Telangana Today, “Through the new facility, we see a big opportunity across pharmaceuticals and biotechnology, cosmetics, perfumery, personal care and other sectors. We will be making vials for vaccines including the Covid-19 vaccines currently under development by Indian biotech companies. We are in active talks with them. There is going to be a recurring demand in the vaccines space in the coming 2-3 years, which will boost glass business.”
“Telangana government has ensured stability and has been very enterprising. The bureaucracy has been supportive and the State has ensured clarity in its industrial policies. The government has provided uninterrupted electricity, water and other amenities. There is also a lot of quality manpower available in the State. The quality of life here has helped us attract senior professionals from across the world.”
Capacity building
With an in-house design facility, mould manufacturing and ACL (Applied Ceramic Labeling) facilities, AGI has fully integrated operations. With the Hyderabad and Bhongir facilities put together, AGI today melts around 1,600 tonnes of glass per day, from 80 tonnes per day capacity in 1972.
The company is focusing on R&D in the areas of inputs, processes, metallurgy and products using both in-house and external capabilities and support from across the world.
India’s total container glass capacity is estimated at 8,000 tonnes per day, of which AGI accounts for 20 per cent of the capacity.
Geographic footprint
Apart from catering to multinationals which comprise a part of AGI’s domestic market (contributing 90 per cent), the company exports to North America, Europe and Africa.
He informed, “We are seeing fresh opportunities in Australia and New Zealand. Due to the pandemic, several nations are looking to disengage with China, and once those countries stabilise, we will have more new markets to foray. Food and liquor are the key segments for exports.”
HSIL as a group has been making significant investments in Telangana in plastic pipes & fittings, security closures, polymer and sanitary-ware segments.
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