Hotline group to invest Rs 1,100 cr in MP

The Hotline group of companies is expanding in Madhya Pradesh. The group, which has two units in Gwalior manufacturing glass and colour picture tubes, will invest Rs 1,100 crore this year. The firm, according to company and government sources, will complete its expansion this year.

Hotline Glass Ltd, set up in 1993 at Malanpur in technical collaboration with Picvue of Taiwan to manufacture glass parts for black-and-white picture tubes with a capacity of 5.5 million sets per annum, is the largest producer of glass parts in India. It also manufactures colour picture tubes. Now there is also a plan to make glass for computer monitors.

"The company will expand its glass unit. The second unit will add 4 million sets per annum. Similarly, its arm Hotline CPT Ltd will produce another 5.5 million colour picture tubes," a source told Business Standard.

The colour picture tube arm was a 50:50 joint venture with LG Electronics, the first with LG by any Indian firm. The company later took over the plant and bought a 50 per cent share of LG Electronics in the joint venture.

"Total investment in the second phase of glass manufacturing will be Rs 200 crore and in the second phase of colour picture tubes Rs 500 crore. Hotline has pumped in Rs 150 crore in the first phase of glass manufacturing. The first phase of both the projects is on. After the completion of the second phase, total investment in Madhya Pradesh will reach Rs 1,100 crore approximately," said the source, adding, "colour picture tube II will have three assembly lines and one line will be for monitors to produce 1.5 million monitors in various sizes per year. The group will have 10,000 headcounts in Madhya Pradesh after the expansion, which is expected to be completed in 6-8 months."

The investment involves also setting up a 40 Mw captive power plant.

Hotline is expecting to corner a fair market share in exports once the expansion is over. "The market scene is a little dull but it will pick up soon. The company is exporting but it will gain pace after some time," said the source.

Although a number of companies have promised to invest in Madhya Pradesh, political uncertainties, frequent reshuffles in the bureaucracy and amendments in industry policy, and by-laws and rules and regulations continue to keep investors away from the state.