Gujarat-based glassware company Borosil Glass Works Ltd has signed an agreement to acquire Hopewell Tableware Pvt Ltd (HTPL), a privately-held firm that manufactures tableware and dinnerware products made of opal glassware, for Rs 27 crore (about $4 million), as per a stock market disclosure.
As part of the transaction, Borosil will also infuse Rs 10 crore in Hopewell.
Borosil markets tableware products made of melamine, besides glass, and this acquisition will augment its product range. This will also mark Borosil’s entry into the opal dinnerware business.
Opal glass is a specially treated glass with impurities making it look white in colour due to diffusion of light. Jaipur-based Hopewell also manufactures tableware using melamine, which is a thermostat plastic dishware.
"There is a limited scope of augmenting the company's market share in its traditional product range. Hence, it has been decided to enter into the opal dinnerware business," it said in the filing.
“With this, we will be able to enhance the capacity utilisation in the HTPL plant and enhance sales,” it said.
The transaction is, however, subject to closing formalities and is expected to be completed by the end of this month.
Incorporated in 2010, Hopewell manufactures and markets opal tableware items, having its factory in Jaipur. In the financial year 2015-16, the company reported revenues of Rs 70 crore.
Avendus Capital advised Borosil on the transaction.