Hindustan National Glass buys Germany's insolvent Agenda Glass

From K Mammen Mathew
Berlin (PTI) - Hindustan National Glass &
Industries (HNG), India's largest manufacturer of glass
containers, has achieved a breakthrough in Europe by acquiring
the assets of insolvent German company Agenda Glass AG for an
undisclosed amount.
The Kolkata-based company, which is the market leader in
India's glass packaging segment, with a share of 55 per cent,
beat competition from over a dozen rival bidders to seal the
deal.
The new company will be known as HNG Global GmbH, a
fully-owned subsidiary of the stock exchange-listed parent
company.
HNG not only made the "most convincing offer", but its
manufacturing expertise and experience in transforming
under-performing industrial units into profitable companies
also played a role in securing the deal, insolvency
administrator Lucas Floether said.
The deal was signed on May 11 and the two sides agreed
not to disclose the costs involved, he said in a statement.
Mukul Somani, the Vice-Chairman and Managing Director of
HNG, and a team of officials representing the new owners of
Agenda Glass AG were introduced to its staff and the local
media at a function hosted today by the Economics Minister of
the State of Saxony Anhalt, Birgitta Wolff.
The new owner promised to keep the company's existing
staff and its production location in Gardelegen, in Saxony
Anhalt, the insolvency administrator said.
Agenda Glass AG was founded in 2008 with an investment
volume of 50 million euros as one of Europe's most modern
glassworks for the production of glass containers.
With a production capacity of 320 tonnes per day of glass
bottles for the alcoholic and non-alcoholic beverage segment
and a workforce of around 150 people, it started production in
February, 2010.
However, the company had to apply for insolvency on
February 22, 2011, after it made a turnover of only around 10
million euros in 2010, far below its expectations, because of
starting technical difficulties, Floether said.
He said he was quite pleased that the Indian buyer
acquired Agenda Glass AG within ten days after the insolvency
proceedings against the company were opened at a regional
court on May 1.
"This enabled us to rehabilitate one of the state's
leading industrial units in a record time," he said.
Wolff also expressed satisfaction that the bankrupt
company will be acquired by an Indian buyer, who will "keep
its production location and its labour force and take over
some of its experienced and competent managers".
The new Indian owner of Agenda Glass AG will ensure that
Saxony Anhalt will continue to be a main hub for glass
production in Germany, the minister said. At the same time,
the Indian investor could benefit from the state's "excellent
conditions" for the availability of raw materials and modern
infrastructure, she said.