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Premji Backed Gold Plus Glass Industry Plans Biggest Capacity Expansion of 700,000 Metric Tonnes

Business Wire India Key highlights:

Plans to put two float glass lines and one solar glass line with combined installed capacity of approx. 700,000 metric tonnes
The total project outlay is said to be in tune of INR 2,200 – 2,300 Crores
In discussion with Government authorities of atleast two Southern states for land allotment and capital/ revenue subsidies
Targeting revenue of over INR 3,000 crores with this capacity expansion
Capital raise of INR 600 crore planned in 2021
Appoints KPMG Investment Bankers for fund raise

 
Gold Plus Glass Industry Limited (Gold Plus), India’s second largest float glass manufacturer and a dominant player in the architectural glass segment, is said to have firmed up its plans to undertake biggest float glass capacity expansion in India till date. The company has confirmed plan to put two float glass lines and one solar glass line with combined installed capacity of approx. 700,000 metric tonnes annually.
 
Gold Plus is the only Indian owned float glass manufacturer and presently has two float lines in Roorkee, Uttarakhand with installed capacity of approx. 460,000 metric tonnes annually. Its facility at Roorkee is spread across 100 acres and produces almost entire bouquet of float glass (clear, tinted, solar control reflective, frosted glass, mirror, etc.). The Company also has a processing unit to cater to high value glasses such as toughened, laminated, insulating, ceramic printed, acoustic, bulletproof, and automotive.  Gold Plus carries the distinction of being the first one to get ISI certification for clear float glass manufactured in India. The company competes with MNCs like Saint Gobin, Asahi Glass, and Gujarat Guardian Glass.

The total project outlay is said to be in tune of INR 2,200 – 2,300 Crores, and the Company is already in discussion with Government authorities of atleast two Southern states for land allotment and capital/ revenue subsidies.  The company is likely to finalize the state and the land parcel in next 3-5 weeks, moreover company is targeting revenue of over INR 3,000 crores with this capacity expansion.

Mr. Jimmy Tyagi, Whole time Director – Gold Plus Glass Industry confirmed the expansion and capital raise plan for the Company but did not divulge further details. Mr. Tyagi said, “The management of the company takes pride in being the only Indian owned/ controlled float glass manufacturer and has laid out a clear plan to further entrench its position in the industry. The company has been eyeing capacity expansion for last couple of years and have finally decided to move forward now considering the overall positive business environment and government policies supporting the domestic glass industry.” He also indicated that the company plans to list its shares on stock exchange in future.

The expansion is expected to be funded through a mix of internal accruals, equity raise and debt. The equity raise is likely to be around INR 600 Crores and KPMG has been appointed to assist the Company in the fund raise. The company is already backed by Premji Invest, which invested INR 400 Crores in 2018.

The company is also setting up a solar glass manufacturing line as part of its planned expansion. Solar glass is used in photovoltaic (PV) panels used to generate electricity.  Currently, only 30% of solar glass requirement is produced in India, and with an expansive solar energy target laid out by the Government, this move by Gold Plus should be welcomed by PV panel manufacturers which are also in process of expanding their own capacities.  Solar energy is on Government’s top agenda and recently the cabinet approved production linked incentives for PV penal manufacturing to promote domestic manufacturing of panels. Currently, Borosil Renewables Ltd. is the only solar glass manufacturer in the country.

Glass is one of the most versatile man-made material and carries widespread application. The float glass consumption in India has been grown rapidly over the years driven by growth and expanded use in architectural, industrial and automotive sectors. India’s per capita glass consumption is only about 2.7 kg as compared to an average of 20-25 kg in other developing economies clearly indicating a tremendous potential for growth.

Based on industry estimates, domestic manufacturers are only able to meet approx. 70% of float glass demand and the balance is met through imports.  Recently, as part of the Government’s efforts to curb cheap imports and promote domestic manufacturing, quality certification (under Quality Control Order or QCO) has been mandated for imported glass and Anti-Dumping Duty has been levied.  This, along with rebound in commercial activity in the country has given a much-needed impetus to players like Gold Plus to go for the capacity expansion.

Over the last few months, Indian economy has seen a ‘V’ shaped recovery led by buoyant demand across the sectors.  Buoyancy in capital markets is all time high and Private Equity investors/ Venture funds have had a busy time investing in companies across the space. Keen interest is seen in companies operating in sectors which are likely to benefit from change in consumer behaviour, and Government’s Atma Nirbhar Bharat Abhiyaan.  PE/ Venture Funds have invested close to USD 27 Billion in Indian companies in last six months.

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