Triveni Glass, an India-based manufacturer of glass products, plans to pay off debt and expand its capacity of building products with funds it expects to raise from
selling assets.
“We are in talks with local distributors who would like to enter manufacturing,” said the company’s Finance Director, A K Dhawan.
“The purpose of the sale is to clear all our liabilities. If there’s money remaining, we’ll invest it in our Andhra Pradesh plant,” Mr Dhawan added, confirming that the company’s debt amounts to approximately 1.5 billion rupees (US$32 million).
It is thought that India’s expanding economy, which has grown at an average of 8.5% per annum for the past five years, is stoking demand for building materials used in homes, factories and offices.
Triveni Glass plans to spend some 50 million rupees to increase its output of glass used in buildings by 25% at its facility in India’s eastern state of Andhra Pradesh, Mr Dhawan said. The funds for the planned expansion may come from cash generated by the sale of plants in Uttar Pradesh, which closed approximately four years ago due to reported ‘labour problems’. The company said in a recent stock exchange filing that it would sell the assets.
Meanwhile, the glassmaker predicts that profit and sales could almost double by March 2013 from the 2010 financial year, Mr Dhawan confirmed. Sales were 305.6 million rupees in the 12 months to March 2010, while revenue in the first quarter of 2010 increased by 18%.
Triveni Glass may invest approximately 200 million rupees in 2011 to construct a new production line for electricity-generating solar panels at its Raja Mundry plant in the state of Andhra Pradesh, according to
Mr Dhawan.
