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MACHINIST - HNG and OMCO JV to set up and operate mould manufacturing facilities in India

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Home arrow News arrow Alliances and Joint Ventures arrow HNG and OMCO JV to set up and operate mould manufacturing facilities in India

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HNG and OMCO JV to set up and operate mould manufacturing facilities in India
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Written by Ramanathan   
Wednesday, 05 May 2010

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Mumbai: Hindusthan National Glass & Industries Ltd (HNG) has signed a joint venture with Belgium based glass mould manufacturer, OMCO International NV, to set up and operate mould manufacturing facilities in India for designing, manufacturing, marketing and sales of moulds for glass packaging products like beverages, liquor, food, pharmaceutical and cosmetic use.

OMCO HNG Engineering Ltd. plans to set up its first plant in Pondicherry with an estimated investment of Rs. 35 crores. The plant will be equipped with state-of-the-art foundry and CNC machines to match global standards. The plant is expected to be operational by September 2010 with an initial capacity of 4000 moulds per month.

OMCO and HNG will have a 50:50 shareholding pattern. As per the joint venture HNG will be providing civil and technical infrastructure, while OMCO will be sharing its expertise on special designs and technologies which are unavailable in India at present.

"The joint venture is a stride by HNG towards becoming the complete glass packaging solutions provider globally by strengthening its backward integration. It is a great opportunity for us to partner with world's leading mould manufacturers for their technical expertise and special designs," said Mukul Somany, Joint Managing Director, HNG.

"Today the Indian glass packaging industry is growing at 7-8% percent annually and poised to grow at 12-15% over the next 10 years. It is riding high on its user industries especially the liquor and beer sector, which is growing at a rate of 12%. With our decades of experience and knowledge of Indian market combined with expertise of our partner OMCO, we are looking forward to many successes as we sign this agreement," he added.

"The glass container market is thriving in India and we aim to bring specialized designs for the big brands in the country," said J C Seynaeve MD & CEO of OMCO.

"We are extremely excited to form the joint venture with HNG. HNG today is the leader in the Indian glass market through their constant innovation, world class manufacturing technologies and best in class services to the Indian market. By combining our expertise on designs and technology we hope that we will be able to deliver the best in class products in the national as well as international market at competitive prices," he further added.

OMCO International NV has foundries in Europe with automatic casting lines and has special expertise in setting up and operating foundry facilities for cast raw material. In addition, they have seven manufacturing plants spread across Europe, UK and USA. OMCO has a turnover of Euro 80 million, with 1100 Employees and 30% worldwide market share. OMCO is owned by BMT.

Hindusthan National Glass and Industries Ltd. (HNGIL or HNG) is the largest container glass manufacturers in India with a 60% plus market share and an annual income of more than Rs. 1500 crores. The other companies under the HNG wing are HNG Float Glass Ltd., Glass Equipment (India) Ltd. (GEIL), Somany Foam Ltd (SFL) and AMCL Machinery Ltd. The company possesses an operational capacity of 11 furnaces and 44 production lines with fully-automated IS machines, sourced from reputed global technology providers of glass industry from Europe and US.

 
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