HNGIL revival kicks off with Kolkata as Madhvani Group's INSCO takes charge

Kolkata, Oct 9 (PTI) Following the successful takeover of Hindustan National Glass & Industries Ltd (HNGIL) by Independent Sugar Corporation Ltd (INSCO) of the Uganda-based Madhvani Group, the new leadership has begun rudimentary site visits in India, marking the start of the glassmaker's revival journey.

The new chairman, Shrai Madhvani, along with other board members, visited HNGIL's Kolkata headquarters and Rishra manufacturing plant on Wednesday to engage with employees, assess operations, and outline the company’s turnaround priorities for all seven plants under its fold, a company statement said.

Currently, six plants are operational. A process will be undertaken to restore very soon, the company said. The other plants are in Bahadurgarh, Rishikesh, Neemrana, Naidupeta, and Puducherry, it said.

"We see immense potential in this iconic Indian brand and are committed to transforming it into a globally competitive glass manufacturer with sustainability and innovation at its heart," Madhvani said after his first visit.

The visit follows the formal completion of INSCO's Rs 2,250 crore acquisition of HNGIL through the Insolvency and Bankruptcy Code (IBC) process.

As per the resolution plan, INSCO has budgeted around Rs 1,000 crore for additional capex.

The resolution plan was approved by the National Company Law Tribunal (NCLT) on August 14, 2025, after receiving clearance from the RBI and the Competition Commission of India.

Under the plan, financial creditors, operational creditors, and workmen will receive a total of Rs 1,901.55 crore upfront, along with Rs 356.28 crore in deferred payments over three years (NPV: Rs 264 crore).

Additionally, 5 per cent equity has been allocated to assenting financial creditors. The NCLT noted that the plan ensured creditors recovered around 60 per cent of admitted claims (40 per cent haircut).

In the latest development, HNGIL's shares were delisted from stock exchanges on September 22, 2025, following the takeover.

The Madhvani Group stated that delisting in the IBC context was aimed at simplifying ownership transfer, reducing regulatory obligations, and protecting the resolution process.

With the Monitoring Committee stepping down and a new Board constituted, HNGIL is set to embark on an extensive modernisation drive — including upgrading furnaces and equipment, investing in automation, diversifying product lines, and expanding both domestic and export markets, officials said.

Employees at HNG’s Rishra plant welcomed the new management with optimism..

"Workers have full faith and confidence in the Madhvani Group, given its proven track record of turnarounds in the glass sector worldwide," said Supriyo Ghosh, at HNG (Rishra Plant) HR head.

Madhvani added that employees and workers would remain central to the revival plan, noting that INSCO's strategy aligns with the Government of India’s 'Viksit Bharat' vision.

Founded in 1946, HNGIL pioneered India's first fully automated glass manufacturing plant at Rishra under the erstwhile Kolkata-based Somany family management.

It has a pan-India presence across seven locations, catering to clients in over 23 countries.

INSCO is part of the century-old Madhvani Group, a diversified conglomerate headquartered in Uganda with interests spanning sugar, tea, energy, hospitality, and packaging. The acquisition marks the Group’s renewed commitment to India’s industrial growth. PTI BSM RG