Independent Sugar Corporation (INSCO), of the Uganda-based Madhvani Group said it has received a favourable order from the Supreme Court of India, clearing its path to acquire Hindusthan National Glass & Industries (HNG) through the Insolvency & Bankruptcy Code (IBC) process.
The Supreme Court ruling has resolved a long-standing corporate dispute, allowing INSCO to establish presence in India’s container glass industry.
Confirming the development Mayur Madhvani, Joint Managing Director, Madhvani Group of Companies said, “With the Supreme Court’s ruling now settled, we are now set to begin operations in India, focusing on revamping HNG’s manufacturing plants, enhancing efficiency, and ensuring long-term sustainability.”
“The acquisition marks a major milestone in The Madhvani Group’s global expansion strategy, reinforcing its commitment to emerging markets and India’s “Make in India” manufacturing initiative,” he said.
HNG, one of India’s oldest and largest container glass manufacturers, has been under corporate insolvency proceedings since 2021.
AGI Greenpac and INSCO were the two contenders for HNGIL. Their bids were worth about ₹ 2,200 crore.
While INSCO secured regulatory approval from the Competition Commission of India (CCI) in September 2022, AGI’s bid was initially favored by creditors, despite lacking regulatory clearance at that time.
The matter was escalated to the Supreme Court, which has now ruled in favour of INSCO, reinforcing the necessity of regulatory approvals in acquisition decisions.
“This verdict upholds the integrity of India’s regulatory framework and allows us to bring in fresh investment and operational efficiencies to HNG. India is a key growth market for us, and we look forward to modernising HNG’s operations and contributing to the country’s industrial growth.” Mr. Madhvani added.
INSCO’s expansion into India is part of the broader growth strategy of The Madhvani Group, one of East Africa’s largest and most diversified conglomerates.
Founded in 1927 by Muljibhai Madhvani in Uganda, the Group has an annual turnover of $500 million in Uganda alone.
It operates in over a dozen sectors, including sugar production, hospitality, real estate, energy, packaging, and container glass manufacturing, employing more than 18,000 people worldwide.
The Group has a strong presence in Africa, the Middle East, and North America, with INSCO’s glass manufacturing expertise coming from its affiliation with the Turner Group.
Turner operates one of East and Central Africa’s largest glass plants in Tanzania, producing 226,000 tons of container glass annually.
By bringing this expertise to India, INSCO aims to revive and expand HNG’s production capacity with a focus on energy-efficient technologies and sustainable glass recycling, the company said.
INSCO had written to the Commitee of Creditors (CoC) “reaffirmed the company’s commitment to ensuring a fast and smooth Corporate Insolvency Resolution Process (CIRP) for HNGIL in the interest of all stakeholders.”
The company has urged the CoC for an “immediate response to initiate dialogue and implement the Supreme Court’s decision.”
Published – February 18, 2025 01:39 pm IST
