AGI Greenpac to invest Rs 230-crore to boost glass packaging solutions

As per a press note issued by AGI Greenpac, the glass packaging major is "Making an investment of Rs 230 crore to modernise its existing furnaces, implement cutting-edge technologies, and optimize production." This initiative will enable the company to better serve the growing demand for high-quality glass packaging solutions. 

Rajesh Khosla, CEO, AGI Greenpac, said, "Our investment in our production capabilities will ensure we are well-positioned to meet the demand for our innovative, high-quality glass packaging solutions. This commitment to best-in-class practices not only strengthens our domestic offerings but also allows us to venture into new markets.” 

AGI Greenpac is strategically expanding its reach beyond India's borders to establish itself as a key force in the international glass packaging landscape. Fueled by the growing global demand for high-quality glass packaging, the company is actively exploring export opportunities in the Middle East and Europe, following the establishment of a strategic export channel in the USA. This move reflects AGI Greenpac's commitment to effectively serving global markets and fostering stronger relationships with customers worldwide. Last year, the group started exports to the EU, Canada and South Africa.

The specialty glass plant in Bhongir, Telangana, has been fully operational since January 2023. With a daily production capacity of 154 tonnes, this facility caters to a range of industries, including cosmetics, perfumery, candle jars, and premium alcohol beverage segments. The plant utilises cutting-edge blow-and-blow and press-and-blow technologies to produce high-quality clear glass products in various shapes and sizes to precisely shape molten glass into a range of high-quality, complex glass bottles and jars. Readers of WhatPackaging? magazine will recall that the commercial operations of Bhongir plant was launched in January 2023 and specialised in high-quality glass premium segment focus on perfumery and cosmetic industries.

AGI Greenpac houses India's first glass packaging R&D centre, dedicated to developing sustainable solutions and pioneering new technologies such as energy-efficient multicolour cold foil stamping process. The Decoration Unit, another first in India, offers an array of customisation options and leverages a range of advanced processes, including ceramic, UV, and hot-foil stamping, to meet the demands of global cosmetics, perfumery, and beverage brands.

The group had highlighted their goal to reach Rs 5000-crore in revenue by FY25. But aim has been dented due to "fluctuations in demand"; as result the Q4 results shows revenue is down 9% YOY and up 1% QOQ. During the Q4FY24 concall; what emerged is, 5.24 lakh tonnes sold this year vs 5.32 lakh tonnes of sales during 2023. As a result volume is down by 1.4%.

Meanwhile AGI Greenpac's acquisition of Hindusthan National Glass is expected to go through. The deal has been pegged at Rs 1742-crore. AGI Greenpac has received approvals from the CoC (committee of creditors) and CCI. Readers of WhatPackaging? magazine will recall, the approvals were objected to in the NCLT which has quashed all cases against AGI after the hearings. The appellants took the case to NCLAT, which was quashed again. The case has been pending hearing in the Supreme Court since October 2023.

With the global glass packaging market poised for significant growth, from USD67.28 billion in 2024 to USD93.69 billion by 2032. AGI Greenpac, a focused packaging products company in India, is implementing a two-pronged strategy to capitalise on this growth.