Hindusthan National Glass & Industries Ltd. (HNG) CORPORATE PRESENTATION June, 2010 Presentation Outline PRESENTATION OUTLINE  HNG Background ◊ ◊ ◊ ◊ About HNG Turnaround specialist Board of Directors Group synergies  Product offerings  Expansion.

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Transcript Hindusthan National Glass & Industries Ltd. (HNG) CORPORATE PRESENTATION June, 2010 Presentation Outline PRESENTATION OUTLINE  HNG Background ◊ ◊ ◊ ◊ About HNG Turnaround specialist Board of Directors Group synergies  Product offerings  Expansion.

Slide 1

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 2

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 3

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 4

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 5

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 6

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 7

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 8

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 9

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 10

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 11

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 12

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 13

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 14

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 15

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 16

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 17

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 18

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 19

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 20

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 21

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 22

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 23

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 24

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 25

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 26

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 27

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 28

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 29

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 30

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 31

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 32

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 33

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 34

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35


Slide 35

Hindusthan National Glass & Industries Ltd. (HNG)

CORPORATE
PRESENTATION

June, 2010
1

Presentation Outline

PRESENTATION OUTLINE
 HNG Background





About HNG
Turnaround specialist
Board of Directors
Group synergies

 Product offerings
 Expansion plans
 Improving efficiencies
 Industry outlook
 Financial Highlights

2

About
 The tradition of manufacturing quality glass
 Constantly improving quality
 Using best in class technology
 Strong financials
 Fullest strategic support from promoters
 Accumulated business knowledge of last 60 years
 Commitment to 360° quality

 Vast managerial pool
 Widening global footprint for both Imports & Exports.
 Industry leadership
 Long profitable relationship with customers and suppliers

3

Pioneering Vision
“To create a world-class glass
manufacturing plant that pursues Quality,
Cost Reduction, and Productivity
Improvement measures in a truly holistic
manner, leading to Customers’,
Shareholders’, Employees’ and Suppliers’
Satisfaction; this integrated effort will
result in the Company becoming an
Industry Benchmark and a role model for
systems, processes and results.”

4

HNG – A “Glass” Apart
 Largest Player (about 65% market share) in the Indian Glass
Container Market
 Manufactures Glass bottles for multiple segments and in multiple
sizes
 Installed Capacity of about 10 Lac MT/annum
 Has consistently invested in Technology (Gross Fixed Asset

stands at Rs. 1661 Crores as at 31st Mar, 2010)

 Gross Sales Revenues of Rs.1439 Crs. in FY09, Rs 1449 in FY10
 Number of people working in the Company: around 7000
 Phenomenal Growth in Revenue & Margins over the years (FY
2007 to 2010) - Sales CAGR at 25% and PAT CAGR at 280%.
 FY 2010 Exports at Rs. 77 Crores, with higher continued
exploration
 The latest long term credit rating of the Company is AA and it is
PR1(+) for short term, both from CARE.

5

“Turnaround” Specialist
 HNG has successfully turned the albatross around the necks of
the old managements, into cash cows with its management
expertise
◊ Ace Glass Containers was acquired in the year 2002 from
Owens Brockway, in order to own Pondicherry and Rishikesh
Plants, which were sick units. The acquired Pune Plant,
unviable, was closed with fullest assets-recovery.
◊ Subsequently, the L&T plant in Nashik, another loss making
unit, was acquired in the year 2005
◊ Acquired the Assets of Haryana Sheet Glass’s Neemrana Unit
in Oct. 2007, revamped and attained Commercial Production
in a record short time – by March 2008
◊ After proving its metal on Indian soil, HNG is exploring similar
opportunities to be repeated on foreign soil, through its core
competencies, either through acquisition or greenfield (under
studies).
 Today all these acquired units contribute to wealth creation for
the Company and its stakeholders

6

Growth – Organic & Inorganic
Expanded

2825
Acquisition of
Assets of Neemrana
Plant – Capacity
2540 TPD

Together constituted Ace
Glass Containers

Capacity at
L&T plant
acquisition –
Capacity at

Growth

TPD

2435 TPD

2150 TPD

Capacity at

1800 TPD
Expanded
Capacity to
Installed
Capacity of

post Owens’
acquisition

1100 TPD

30 TPD

1952

2000-01

2001-02

2004-05

7

2006-07

2007-08

Present

Pan – India presence

Location

Capacity (TPD)

Furnaces

Rishra

805

3

Bahadurgarh

655

3

Neemrana

180

1

Rishikesh

425

2

Nashik

390

1

Pondicherry

370

1

2825

11

Delhi

Kolkata

Mumbai

Hyderabad

Total
Bengaluru

Marketing Office
Chennai

8

Board of Directors

Mr. Chandra Kumar Somany, Chairman

Mr. Sanjay Somany, Managing Director

Mr. Mukul Somany, Joint Managing Director

DIRECTORS
▪ Mr. Kishore Bhimani

▪ Mr. Sujit Bhattacharya

▪ Mr. Ratna Kumar Daga

▪ Mr. Dipankar Chatterji

▪ Mr. Shree Kumar Bangur

▪ Dr. Indrajit Kr. Saha

▪ Mr. Ram Raj Soni

9

HNG - Accreditations

10

In-House Group Synergies

(existing)

 Glass Equipments (India) Ltd.
◊ Glass Plant Machinery and spares manufacturer. Produces Global standards of technology at
much lower costs.
 HNG Float Glass Ltd.
◊ Greenfield Float Glass plant set up at Halol, Gujarat at a cost of Rs. 600 Crores (Debt Rs. 350
Crores : Equity Rs. 250 Crores), having achieved the commercial production and products
launched in the market. Also contemplating for second float line (800 tpd) in the same location.

HNGIL is considering to make HNG Float as its subsidiary.
◊ Would cater to the Realty, Automobile and domestic household sector.

HNG FLOAT

11

Shareholding Pattern

Particular

% Shareholding

(as in June, 2010)

Promoters

69.98

Public Shareholding

30.02

Insurance Companies

0.37

Bodies Corporate

3.14

FIIs

7.27

Individuals

19.24*

*Includes 16.76% held as treasury shares in the Company
Note: Total shares 873.39 lacs of face value Rs. 2 each, fully paid up

12

Product offerings

13

Wide variety of products
 Produces more than 15 mln. bottles per day
 Ranging from 5 ml to 3200 ml
 High quality – ISO 9001/2000
 Multifarious industries:
◊ Liquor & Beer
◊ Pharmaceuticals
◊ Beverages
◊ Processed Foods
◊ Cosmetics etc.

14

HNG’s Blue Chip Customer base
Beverages: Non- Alcoholic
and Alcoholic

Pharmaceuticals

15

Cosmetics & Processed food

Sector-wise supply

16

Expansion plans

17

Production Capacity
Capacity – Tonnes per day

Particulars

FY08

FY09

FY10

FY11E

FY12E

FY13E

FY14E

FY15E

Rishra

720

720

805

805

860

860

860

860

Bahadurgarh

690

690

655

765

765

765

765

765

0

180

180

210

210

210

210

230

Rishikesh

410

410

425

425

485

485

485

485

Pondicherry

360

360

370

370

370

370

800

800

Nashik

360

360

390

390

415

515

515

515

-

-

-

-

-

650

650

650

2540

2720

2825

2965

3105

3855

4285

4305

Neemrana

New Facility
(AP)
Total

18

Ramp-up in capacity
 HNG plans a capital expenditure of Rs. 896 Crores to
further increase production capacity and rebuilds
within next two years.
◊ Greenfield plant in AP : at 490 Crs. (650 TPD)
(Land has been already allotted to HNG , Project

commencement expected soon and targetted project
completion date is Mar’12)

◊ New Furnace in Nashik : 115 Crs. ( 100 TPD)
◊ Maintenance Capex : 291 Crs. ( 120 TPD)
 Margins expected to grow significantly with increase
in capacity, better operating efficiencies and
economies of scale and sharing of fruits of light
weighting and NNPB initiatives. Large savings also to
come from Plants switching to Gas – Neemrana
w.e.f. July,2010 and Nashik w.e.f. April, 2011.
Company is seriously exploring earliest gas
connectivity in other 3 Plants. Company is also
examining ramping up its captive power generation
facility (present about 15MW in Bahadurgarh)
through use of Natural gas in other plants.

19

Improving efficiencies

20

Key Reasons for Improving Margins
 Installation of natural gas operated power generators and in
manufacturing process, as well as the well planned capital
expenditure
 World class designing and mould manufacturing facility in the
Company, with own Foundry
 Economies of scale in procurement of Raw
Materials/Consumables
 Light weighting, while producing stronger bottles – Mutual
benefit to customers and HNG
 HNG introduced NNPB (Narrow neck press & blow technology)
for the first time in India, HNG is exploring further strengthening
of this technology.
 Neemrana & Nashik Units converting to Gas, Net saving of Rs
20 Crs. (approx) p.a. Other plants are also exploring arranging
gas connectivity to switch FO and LPG.
 Sand Mining – Bankura, Sand benefication plant for Rishra unit,
exploring opportunities for other plants as well.
 Entered into JV with OMCO of Belgium for Moulds – Technology
and manufacture
21

Industry Outlook

22

Packaging Industry



US $ 15 bln. market size in India – expected to grow at
14% in the medium term



The present share of about 6-7% of Glass Packaging in
the total Indian Packaging industry offers huge
opportunities on account of health, hygiene and
environment



India constitutes a mere 3% of global packaging Industry,
while population constitutes 16% of global.



Growth in allied industries: Food Processing, Retail, FMCG,
Alcohol and Beverages, Perfumes & Cosmetics,
Pharmaceuticals; is a major growth driver for glass bottles

23

Down Stream Drivers
 Liquor - Indians consume 200 mln cases of IMFL and 220 mln cases of country liquor. Increasing
trend of social drinking, driving the sector growth at almost 13%.
 Beer - Shipments in 2009- 174 mln cases against 137 mln cases in 2007. Consumption has been
increasing by 15 to 20%.
 Food Processing - USD 70 billion industry has grown at 13.7% in only 4 years and is expected
to grow at a rate of 10% in next 5 years
 Pharmaceuticals - India is the fastest growing market, where average spending has doubled
over past decade. Increased consciousness for wellness leads to demand. Indian Pharmaceutical
market is expected to see a CAGR of 12-15% over the next 3 years (as per IMS research).
 Carbonated drinks - INR 6000 Cr. industry is expected to grow at 6-8% p.a.
 Cosmetics - Domestic cosmetics and toiletries segment is growing at 15- 20% and current
industry size is USD 950 million, which is expected to become USD 1.4 billion in 3 years time.

24

Glass Industry

Per Capita Consumption of Glass (kgs)
89.0

25

Japan

South Korea

China

Low Per Capita Consumption of Glass in India
- significant scope for growth

France

Brazil

10.6

27.5

USA

10.2

27.5

UK

5.9

19.5

Mexico

4.8

18.8

Argentina

1.4

Philippines

1.2

India

63.9

Indonesia

100
90
80
70
60
50
40
30
20
10
0

Growth through downstream Industries
 Per capita consumption of Glass in India is ~1.4 kgs, as against 27.5kgs in US and UK and 5.9 kgs
in China
 The low per capita consumption of beer in India (0.8 ltrs. v/s 22 ltrs. in China) leaves substantial
scope for increase in demand
 Indian Pharmaceutical Industry is valued at Rs. 250 bn, growing at 10% annually.
 Adoption of stricter government norms and rising industry standards in quality would further boost
glass packaging in the pharmaceutical industry
 Only 6% of all processed food in the country is packed in glass, which offers huge scope

26

Glass – a preferred packaging medium


Environment friendly



Full recyclability



Lowest pollution (life cycle)



Totally inert to contents, heat and UV rays – Thus does not react with packed contents



Visibility of contents



Versatility of design

27

Financial Highlights

28

Financial Performance
All values in Rs. million

Particulars

FY07

FY08

FY09

FY10

Net Revenue

7016

10213

13110

13599

EBITDA

1175

2147

2359

3163

EBITDA Margin

17%

21%

18%

23%

28

1603

1077

1552

0.40%

16%

8%

11%

1.59

18.36

12.34

17.77

PAT
PAT Margin
EPS (Rs.)

29

Financial Performance
All values in Rs. million

Particulars
Net Fixed Assets

FY07

FY08

FY09

FY10

8342

8923

9885

11437

713

1146

1046

1471

2341

2935

3912

3874

11396

13004

14843

16782

Net Worth

7149

8636

9352

10428

Secured Loans

2546

2874

4152

5486

Unsecured Loans

1248

1313

921

171

453

181

418

697

11396

13004

14843

16782

Investments
Net Working Capital

Met by :

Provisions

30

Financial Projections
HNGIL

Particulars

All values in Rs. million

FY11

FY12

FY13

FY14

FY15

EBITDA

3840

4758

6486

8549

9718

EPS (Rs.)

27.24

24.36

30.68

44.58

54.05

HNGFL ( Associate Company)

Particulars
EBITDA

All values in Rs. million

FY11

FY12

832

1408

FY13
1689

FY14
1856

FY15
2012

HNGFL = HNG Float Glass Limited, where Company owns Equity Stake

DISCLAIMER :“The projections disclosed above are merely indicative in nature and are purely based on management’s beliefs, opinions and estimates
as of the date of this Presentation and no obligation is assumed to update such forward looking statements if these beliefs, opinions and estimates should
change or to reflect other future developments. These projections are based on certain assumptions of future events over which the Company exercises no
control. Hence this involves number of risks and uncertainties which could cause the actual results to differ materially from those that may be projected or
implied.”
31

HNGIL’s Rating & Ranking
 CRISIL Rating ( As on Feb ’10)
◊ On “Fundamental” side 4/5 means “Superior Fundamentals”
◊ On “Valuation” Side 5/5 means “Strong upside”
 Business Standard Ranking ( Out of 1000 top listed corporates, as on Feb ’10)
◊ Ranking in terms of Revenue - 299
◊ On Operating Profit Quantum – 265
◊ On Net Profit Quantum – 253

32

“HNG – A Conglomerate”


Largest Player, about 65%, in the Indian Glass Container Market through organic and inorganic
growth measures in the last 8 years, more than doubling the capacity in this small period



Entered the Engineering business by acquiring AMCL Unit in Nagpur



Synergistic diversification by setting up of Rs.600 Crores Float glass project in the Gujarat at
Halol near Baroda

33

Disclaimer
The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein referred to as
the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary information on the
business activities of the Company, in order to assist the recipient in understanding the Company. This Presentation does not purport
to be all inclusive or necessarily include all information that a prospective investor may desire in evaluating the Company. The
Company expressly disclaims any and all liability for any errors and/or omissions, representations or warranties, expressed or implied
as contained in this document.
This Presentation contains certain forward looking statements which are based on certain assumptions of future events over which the
Company exercises no control. Hence this involves number of risks and uncertainties which could cause the actual results to differ
materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but
are not limited to: our ability to manage growth, competition, attracting and retaining skilled professionals, time and cost overruns,
regulatory approvals, market risks, domestic and international economic conditions, changes in laws governing the Company including
the tax regimes and exchange control regulations.
The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the
Company. This Presentation may not be photocopied, reproduced or distributed to others at any time without prior consent of the
Company. Upon request, the Recipient will promptly return all material received from the Company without retaining any copies
thereof.
In furnishing this Presentation, the Company do not make any obligation to provide the Recipient with access to any additional
information on the Company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of the
company nor shall it constitute an indication that there has been no change in the business or state of affairs of the Company since the
date of publication of this Presentation.
Any clarifications / queries as well as any future communication regarding the Company should be addressed to the Company. “This
presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, invitation, or a solicitation of any
offer, to purchase or sell or subscribe, any shares of the Company and should not be considered or construed in any manner
whatsoever as a recommendation that any person should subscribe for or purchase any of the Company’s shares.”

34

Hindusthan National Glass & Industries Ltd. (HNG)

THANK
YOU

For any queries/to obtain more info, please
write at [email protected]
35