In a major boost to India’s industrial recovery efforts, the National Company Law Tribunal (NCLT) has approved INSCO’s ₹2,250 crore revival plan for Hindustan National Glass & Industries Ltd. (HNG), the country’s largest container glass manufacturer. The green light marks a significant milestone in reviving the debt-ridden company and safeguarding thousands of jobs across its manufacturing units.
Background – The Fall and Revival of HNG
Hindustan National Glass, with a legacy spanning over 75 years, has been a dominant player in India’s glass manufacturing industry, catering to sectors like food, beverages, pharmaceuticals, and packaging. However, mounting debt, operational inefficiencies, and market challenges pushed the company into insolvency proceedings in 2021.
Since then, HNG has been undergoing corporate insolvency resolution under the supervision of the NCLT. Multiple suitors had expressed interest, but the plan submitted by INSCO, a strategic investor group with expertise in industrial turnaround, was finally selected for its comprehensive financial and operational restructuring roadmap.
Key Highlights of INSCO’s Revival Plan
| Component | Details | Impact |
|---|---|---|
| Total Investment | ₹2,250 crore | Capital infusion to revive operations and settle dues |
| Debt Resolution | ₹1,500 crore allocated to repay lenders | Reduces company’s debt burden significantly |
| Operational Upgradation | ₹500 crore earmarked for plant modernization | Enhances production efficiency |
| Working Capital | ₹250 crore | Ensures uninterrupted raw material supply and operations |
Why the NCLT Approval is Significant
The tribunal’s nod does not just mean the continuation of HNG’s business—it represents:
- Preservation of jobs for over 3,500 employees across its plants
- Revival of supplier contracts and SME vendor ecosystems linked to HNG
- Restoration of production capacity, benefiting India’s beverage and pharma packaging industries
- Investor confidence boost, signaling that industrial turnaround stories are possible under India’s Insolvency and Bankruptcy Code (IBC)
INSCO’s Strategic Roadmap for HNG
INSCO’s plan is built around three pillars:
- Financial Stability: Immediate settlement of dues to creditors, restoring credibility with banks and trade partners.
- Operational Efficiency: Upgrading manufacturing facilities in Rishra (West Bengal), Bahadurgarh (Haryana), and Nashik (Maharashtra) with state-of-the-art equipment.
- Market Expansion: Diversifying product range, including eco-friendly glass packaging to meet rising sustainability demands from FMCG and pharmaceutical sectors.
Debt and Creditors’ Position Pre-Revival
| Creditor Category | Outstanding Debt (₹ crore) | Expected Recovery (%) |
|---|---|---|
| Secured Lenders | 1,800 | 83% |
| Operational Creditors | 400 | 60% |
| Unsecured Creditors | 200 | 50% |
The plan’s high recovery rate for secured lenders was a key factor in winning creditor approval, which exceeded the required voting threshold under IBC norms.
Impact on the Indian Glass Industry
The revival of HNG is expected to strengthen India’s self-reliance in packaging materials and reduce dependency on imports. The container glass industry is projected to grow at a CAGR of 6-7% over the next five years, driven by demand in alcohol, beverages, and pharmaceutical sectors.
With HNG’s revival, INSCO aims to:
- Increase capacity utilization from the current 40% to 85% within two years
- Launch new eco-friendly glass product lines
- Expand exports to Southeast Asia and the Middle East
Expert Reactions
Industry analysts and insolvency experts have welcomed the NCLT’s decision.
- Corporate governance analysts believe it demonstrates the effectiveness of the IBC framework in rescuing viable businesses.
- Market watchers see the approval as a potential trigger for a positive re-rating of HNG’s value in private equity circles.
- Sustainability advocates have expressed optimism about the company’s plans for eco-friendly packaging innovations.
Future Outlook for HNG Under INSCO
If executed effectively, the revival plan could transform HNG into a global glass manufacturing leader. The company’s renewed focus on technology, sustainability, and market expansion is expected to:
- Improve profitability by FY27
- Reduce energy costs through greener manufacturing processes
- Capture larger market share in premium glass packaging
Possible Challenges Ahead
While the plan is promising, certain challenges remain:
- Volatile raw material costs (especially soda ash and silica)
- Rising energy prices impacting manufacturing costs
- Maintaining creditor and investor confidence during transition
- Ensuring quick turnaround in operational efficiency
A Case Study in Industrial Turnaround
The HNG revival will likely be studied as a benchmark case in India’s corporate restructuring space. It showcases:
- The role of strategic investors in industrial revival
- How collaborative creditor-debtor negotiations can yield high recovery rates
- The potential of the IBC to preserve legacy brands while modernizing operations
Disclaimer: This article is based on publicly available data, corporate announcements, and industry analysis as of the date of publication. Developments in insolvency resolution and corporate governance are subject to change pending regulatory and financial updates.
