Hindustan Tin, UK Rexam JV for Rs 90 cr beverage can plant

New Delhi, Aug 1 (UNI) Hindustan Tin Works (HTW) today announced it has entered into a 49:51 joint venture with UK-based Rexam Plc, to set up a two-piece beverage can facility in Mumbai, at a cost of Rs 90 crore, to leverage the domestic and SAARC beverage cans market.

The joint venture will operate through a new entity -- HTW Beverage Can India Pvt Ltd -- and will be headed by HTWL Managing Director Sanjeev Bhatia.

''The Indian beverage cans market is estimated at Rs 20,000 crore per annum, which is met by 100 per cent imports. Our project aims at total import substitution, through this plant, which is the first of its kind in India,'' Mr Bhatia told reporters today.

Besides meeting the the local demand, the two-piece manufacturing plant will cater to the demand of the neighbouring SAARC countries.

The companies expect to sell 250-300 million cans by 2007-08.

The Mumbai facility is in its advanced stage and is expected to start production by the the year-end, with an initial capacity of 450 million cans a year, including DRD and DWI beverage cans.

The funding of the project will be done with a mix of equity and debt from banks in the ratio of 52:48 by both the parners.

The company is in talks with leading soft drink manufacturers like Coke and Pepsi and beer manufacturers including United Breweries.

HTW Beverage Can India Pvt Ltd, will be changed to Rexam Beverage Can (India) Pvt Ltd in a month's time. ''There are some more formalities left, after which the newly formed company will be called Rexam Beverage Can (India) Pvt Ltd, by mid-Sepetember,'' Mr Bhatia said.

HTWL is also setting up a three-peice food can plant at Himachal Pradesh, with an investment of Rs 14 crore. The plant will be operational by March 2007.

Rexam is a leading consumer packaging group with annual sales of six billion dollars. It has 100 plants in more than 20 countries.

UNI CS RA RN1754