Asahi to set up unit in Uttaranchal

Company to invest Rs 600 crore

The country's largest glass manufacturer, Asahi India Glass, is zeroing in on Uttaranchal to invest about Rs 600 crore to set up a manufacturing facility. This is part of the company's strategy to build a mega integrated manufacturing facility.

"Asahi will be one of the biggest investors in the non-power sector in the state. We expect other glass companies to make major investments," said Sanjeev Chawla, secretary (industry promotion), Uttaranchal.

The investment proposal by Asahi come on heels of Hero Honda planning to invest about Rs 550 crore in the state. Besides, corporates like Videocon and the Hari Shankar Singhania group are investing in the state to set up a manufacturing base.

According to Chawla, the state has made a detailed roadmap to attract high investments. "Besides, we are also in the process of getting some of the top Indian companies to the state to invest in huge manufacturing facilities," he said.

Asahi India will identify the location for the investment. Besides, the methods of production and the product range will be decided soon.

"There are various industrial belts in the state where it can set up the manufacturing base. The location will be finalised soon. We expect the company to start production shortly," Chawla said.

Asahi India Glass, which currently has a float glass plant at Taloja in Maharashtra, was looking at setting up a new one with a Rs 600-crore investment, to service new markets. The company also has an automobile glass manufacturing plant in Haryana to service the auto majors located in the region.

The company is expected to meet the investment requirements through internal accruals.

The company""a joint venture of Japan's Asahi Glass Co, the Labroo family, and Maruti Udyog Ltd""is also establishing a new subsidiary, AIS Glass Solutions, to market value-added products like tempered glass and sound-proof glass. Asahi India Glass's sales in the first quarter ended June 30, 2004 increased 22.3 per cent to Rs 154.8 crore.

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Other investments

• The investment proposal by Asahi come on heels of Hero Honda planning to invest about Rs 550 crore in the state
• The company is expected to meet the investment requirements through internal accruals
• Corporates like Videocon and the Hari Shankar Singhania group are investing in the state to set up a manufacturing base