Hindustan Sanitaryware & Industries Ltd (HSIL) is to invest Rs 6.5 BN ($142.8M) on capacity expansion. The company board has approved a capital expenditure of Rs 3.0 BN ($65.9M) in addition to the Rs 3.5 BN ($76.9M) approved in October last year.
HSIL will invest Rs 3.5 BN ($76.9M) in its glass bottles business division to increase capacity from 1,050 to 1,500 metric tonnes per day (MTD). Sanitaryware production capacity will be expanded to 5 million pieces per annum from the present 2.8 million pieces with an investment of Rs 2 BN ($44M). Besides, chrome plated bath fittings production capacity will also be hiked to 2.5M units every year from the current 0. 3M units per annum entailing an investment of Rs 1,000M ($22M).
HSIL is also looking for acquisitions worth around Rs 1,500M ($33M) and is currently considering 3-4 proposals. HSIL last year acquired Crabtree from Havells for about Rs 170M ($3.7M) and a UK-based sanitaryware company called Barwood Products Ltd for one million pounds.