Gujarat Glass lines up Rs 200 cr capex plan

Gujarat Glass (GGL), independent subsidiary of Nicholas Piramal and manufacturer of glass packaging for pharmaceutical and cosmetic products has lined up a Rs 200-crore investment plan for its plants in Jambusar and Kosamba in Gujarat.

The company will also be ramping up its production plant in Sri Lanka, where it functions under the name of Ceylon Glass Company.

Currently, the Jambusar plant has seven furnaces, with 27 automatic production lines and produces seven million glass bottles and vials.

The firm is planning to put up an additional furnace in the plant, while the smaller Kosamba plant is likely to get five new furnaces.

According to company officials, the increase in production capacity is due to the projected growth in export demand by over 15-20 per cent this year.

"The market for packaging material in India can be estimated roughly at Rs 10,000 crore, of which Rs 900 crore alone is the size of the glass containers market.

However, the demand for glass packaging for pharmaceutical and cosmetic products has been growing at a faster pace in the international markets, where we are emerging as a major player by catering to over 55 countries," said Vijay Shah, managing director, Gujarat Glass.

At its plant in Sri Lanka, the company is planning to make an investment of Rs 100 crore to double the production capacity from 1,10,000 tonne to 2,10,000. The unit will also supply bottles to the Indian and Australian wineries.

Reportedly, Ceylon Glass caters to around 85 per cent local demand for glass bottle, while Gujarat Glass occupies around 40-50 per cent of the pharmaceutical and cosmetic products market in India, said Shah.