Total Pageviews

Wednesday, March 31, 2010

Thousand crores for import of glass technology for cosmetics and perfumes

Mint carried news about Piraml Glass revival. In 2005, the Indian company acquired part of an Bankrupt American firm, Glass Group for $18 milion, invested additional Rs 300 crores and as on 2009 took a debt of Rs 1,357 crores. Very fascinating account in managing technology.
In 1918, Harding family they built their plant and called it Harding Glass Company. By 1965 HGI had grown to 53 operations in 8 states. The Glass Group was formed in1999 by a group of glass industry professionals to develop the necessary software tools and technology that would allow the Glass Industry to utilize Internet communications technology in an effort to reduce supply chain management costs for all industry participants, Glasslink and Directlink are their poremium products. When Glass Group filed bankruptcy petition, the pharma glassware part was acquired by German firm Gerresheimer Group . The 20 $million acquisition comprised both the container glass works in Millville and its 45.7% share in the Chinese specialty glass manufacturer Beijing Wheaton. The Chinese operations expanded and Gerresheimer now runs 7 plants in China. The acquisition helped Gerresheimer to expand its business in USA- it had a strong lead in the field of tubular glass and pharmaceutical packaging produced from it, while in the field of container glass for pharmaceutics the Gerresheimer Group was in the past represented in the American market by only one plant. The German firm understands the technology.
The Germans did not bid for Flat River Glass, which employs about 530, making glass containers for the cosmetics industry. Australian glassmaker Stölzle-Oberglas expressed interest in the facility and its employees. Piramal Glass succeeds in outbidding the Australian fiorm and bags the assets- eight lines of Type III flint bottles, for C&P, Pharma, liquor and food products industries.
House of Piramal had great reputation for growing with acquisitions. Where did things go wrong in US deal?

No comments: