Consumer goods packaging firm Rexam and can maker Hindustan Tin Works today said they would jointly invest Rs 220 crore to set up a new beverage can manufacturing line in India in the next two years.
The companies said with the opening of the new line, their total production capacity will increase to 850 million cans from 300 million cans per year. It will come up at their current site at Taloja near Mumbai.
"The new line represents a capital investment of Rs 220 crore over two years," the two firms said in a joint statement.
Production from the new line will start in the final quarter of 2012, the statement added.
"This investment reinforces our commitment for the Indian beverage can market. We share an excellent relationship with all the leading customers in India and this capacity will help further to grow the beverage can market and to satisfy our customers growing demands," Hindustan Tin Works Managing Director Sanjay Bhatia said.
In 2006, both the companies had signed a joint venture to set up a can manufacturing facility in Mumbai.
"The investment is consistent with our emerging market strategy. The country has enjoyed considerable growth over the last decade, with rising incomes and a young middle class, and this trend is expected to continue," Rexam Chief Executive Graham Chipcahse said.
