AGI glaspac eyes 18% revenue growth with new greenfield plant by 2022

AGI to generate 600 direct & 4000 indirect employment for new Telangana plant

AGI glaspac
AGI glaspac will evaluate to engage with startups that can meet the international standards of printing and decoration for its new speciality glass plant. Photo - AGI

Hyderabad-based AGI glaspac, a manufacturer of integrated container-glass, initiated its new plant work and announced that with the manufacturing of specialty glass, the company foresees topline growth in its revenue by not less than 15-18% by 2022-23. Last week, the company raised an investment of Rs 220 crore to manufacture special glass for premium segments, such as cosmetics, perfumery, personal care, carbonated water, and high-end spirits. These special glasses require an additional layer of printing decoration, design, and detailing work, which is possible only using specific technologies. AGI glaspac aims to attract further investment to complete the work.

For the printing design and decoration of the specialty glass, AGI glaspac will evaluate engaging with Indian start-ups to meet the international standards of printing and decoration. The company has been serving its customers in the liquor, wine, food, chemical, and pharma industry worldwide with commercial and Type1 glass quality for over 40 years. The addition of clear specialty glass to its portfolio will cater to a new customer segment.

Rajesh Khosla AGI 2
Rajesh Khosla, president and chief executive officer of AGI glaspac,

Rajesh Khosla, president and chief executive officer of AGI glaspac, said, “The pandemic has resulted in geopolitical disengagement with certain countries. It will leave the glass industry with a huge void and a shortfall of suppliers or importers in the future. We believe that it is a huge opportunity for Indian manufacturers and start-ups for various industries to increase exports and reduce imports. It is a golden opportunity to raise the bar in the international markets for the ‘Made-in-India’ products. AGI glaspac’s entry in the new segment of manufacturing specialty glass is a strategic decision. It will allow us to cater to the much-expected rise in the global demand after the pandemic subsides.”

The first phase of investment of Rs 220 crore will go towards four levels of expenses – civil construction of the plant, machinery and a new furnace, utilities, and finally new team for the development of the newly launched ‘AGI Speciality-Glas Division.’ The company will engage more than 4600 people, including direct and indirect employees. The team’s total strength is 14,700, and it will be 19,300 by the end of 2022, it said.

KT Rama Rao, minister for Municipal Administration and Urban Development, Industry and Commerce, Information Technology, at Telangana state said via Twitter, “Happy to welcome new investments from the HSIL Group into its glass business AGI glaspac, along with plastic pipes business. Many thanks to good friend and Managing Director of HSIL Limited Sandeep Somany for his continued support towards the Telangana state.”

Early this year, the company had announced a geographical expansion with an estimated investment of Rs 700 crore in the eastern part of India. However, due to the pandemic, the company envisaged investment opportunities to expand its existing plant at Bhongir, Telangana. With the ease of doing business at Telangana, the company has chosen the state for the new segment launch. The plan to geographically expand to service the trade-sensitive regions will be taken up later.

The Packaging Products Division of HSIL, AGI glaspac (also known as AGI), was established in 1972 and is one of the leading container-glass manufacturers in the country. AGI has two state-of-the-art facilities, one in Hyderabad and the other in Bhongir, Telangana. They are engaged in the manufacture of high-quality glass containers to meet the stringent and demanding quality standards of the packaging needs of the food, pharmaceuticals, soft drinks, spirits, beer, wine, and other industries.

With an in-house design studio, mold manufacturing, and ACL (Applied Ceramic Labeling) facilities, AGI has fully integrated operations, enabling the manufacture of quality products and ensuring timely deliveries. With the Hyderabad and Bhongir facilities put together, AGI melts around 1600 tons of glass per day. With four furnaces, AGI can commit to the availability of flint, amber, and green glass throughout the year. Apart from the host of the multinationals who comprise a part of AGI’s Indian market, it also has a large customer base in North America, Europe, Africa, and the APAC regions.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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