Gold Plus Glass Industry plans biggest expansion of 700,000 metric tonnes

Gold Plus Glass Industry Ltd, India’s second largest float glass manufacturer and a dominant player in the architectural glass segment, has firmed up 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.

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 at least two Southern states for land allotment and capital/revenue subsidies. The company is likely to finalize the state and the land parcel in next three to five weeks, moreover company is targeting revenue of over INR 3,000 crores with this capacity expansion.

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. “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,” he said. “The company has been eyeing capacity expansion from 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.”

Tyagi indicated that the company plans to list its shares on stock exchange in the future. He said 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 fundraise.” 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 expansion solar energy target laid out by the government, this move by Gold Plus should be welcomed by the PV panel manufacturers which are also in process of expanding their own capacities.

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Solar energy is on the government’s top agenda and recently, the cabinet approved the 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 mand-made material and carries a widespread application. The float glass consumption in India has 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 2.7kg as compared to an average of 20-25kg in other developing economies clearly indicating a tremendous potential for growth.