Hindusthan National Glass buys Germany's insolvent Agenda Glass; stock down

BERLIN: Hindusthan National Glass & Industries (HNG), India's largest manufacturer of glass containers, has achieved a breakthrough in Europe by acquiring the assets of insolvent German company Agenda Glass AG for an undisclosed amount.

At 10:45 am, shares of Hindusthan National Glass were trading 0.48 per cent down at Rs 207 on the Bombay Stock Exchange.

The Kolkata-based company, which is the market leader in India's glass packaging segment, with a share of 55 per cent, beat competition from over a dozen rival bidders to seal the deal.

The new company will be known as HNG Global GmbH, a fully-owned subsidiary of the stock exchange-listed parent company.

HNG not only made the "most convincing offer", but its manufacturing expertise and experience in transforming under-performing industrial units into profitable companies also played a role in securing the deal, insolvency administrator Lucas Floether said.

The deal was signed on May 11 and the two sides agreed not to disclose the costs involved, he said in a statement.

Mukul Somani, the Vice-Chairman and Managing Director of HNG, and a team of officials representing the new owners of Agenda Glass AG were introduced to its staff and the local media at a function hosted today by the Economics Minister of the State of Saxony Anhalt, Birgitta Wolff.

The new owner promised to keep the company's existing staff and its production location in Gardelegen, in Saxony Anhalt, the insolvency administrator said.

Agenda Glass AG was founded in 2008 with an investment volume of 50 million euros as one of Europe's most modern glassworks for the production of glass containers.

With a production capacity of 320 tonnes per day of glass bottles for the alcoholic and non-alcoholic beverage segment and a workforce of around 150 people, it started production in February, 2010.

However, the company had to apply for insolvency on February 22, 2011, after it made a turnover of only around 10 million euros in 2010, far below its expectations, because of starting technical difficulties, Floether said.

He said he was quite pleased that the Indian buyer acquired Agenda Glass AG within ten days after the insolvency proceedings against the company were opened at a regional court on May 1.

"This enabled us to rehabilitate one of the state's leading industrial units in a record time," he said.

Wolff also expressed satisfaction that the bankrupt company will be acquired by an Indian buyer, who will "keep its production location and its labour force and take over some of its experienced and competent managers".

The new Indian owner of Agenda Glass AG will ensure that Saxony Anhalt will continue to be a main hub for glass production in Germany, the minister said. At the same time, the Indian investor could benefit from the state's "excellent conditions" for the availability of raw materials and modern infrastructure, she said.