Madhvani Group’s INSCO takes full control of HNGIL after IBC resolution

INSCO’s revival blueprint includes modernising furnaces and equipment, investing afresh into operations, expanding product lines, and strengthening HNGIL’s competitiveness in both domestic and international markets.

Independent Sugar Corporation Limited (INSCO), part of the Uganda-based Madhvani Group, has officially completed its acquisition of Hindustan National Glass & Industries Limited (HNGIL), India’s once-largest container glass manufacturer, via the Insolvency and Bankruptcy Code (IBC) route.

The formal takeover was recorded during a board meeting of HNGIL’s newly constituted leadership on Friday, paving the way for INSCO to assume full control of the company. The acquisition, led by industrialists Kamlesh and Shrai Madhvani, received financial backing from Cerberus Capital Management and the International Finance Corporation (IFC).

INSCO assumed full control of HNGIL after the company’s newly-formed board formally recorded the transition in a meeting on Friday.

The Rs 2,250 crore Resolution Plan had earlier secured approval from the National Company Law Tribunal (NCLT) on August 14, 2025, along with regulatory clearances from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI). Following NCLT approval, a 45-day Monitoring (Transition) Phase ensured a seamless handover before the new board took charge, signaling the start of HNGIL’s revival.

This landmark transaction concludes one of India’s most high-profile insolvency cases, which had seen seven years of litigation since the Corporate Insolvency Resolution Process (CIRP) began in October 2021.

The Committee of Creditors (CoC) had overwhelmingly approved INSCO’s Resolution Plan with a 96.16% majority, reflecting strong confidence in the group’s turnaround strategy.

Under the plan, INSCO will make an upfront cash payment of Rs 1,901.55 crore to financial creditors, operational creditors, and workmen, alongside a deferred payment of Rs 356.28 crore over three years (NPV: Rs 264 crore). Additionally, 5% equity has been allocated to consenting financial creditors. The NCLT highlighted that the plan represented 72% of HNGIL’s Average Fair Value and 114% of its Average Liquidation Value, with 60% of admitted claims to be recovered by creditors.

Shrai Madhvani, chairman of HNGIL’s new board, emphasised the importance of the company’s workforce in its revival. “We firmly believe that employees and workers are the foundation of any successful turnaround. HNGIL’s dedicated workforce has shown remarkable resilience during the insolvency period, and we are committed to working closely with them to shape a secure, safe, and sustainable future for the company,” he said.

He added, “The revival of HNGIL will require the collective support of employees, customers, suppliers, regulators, and both state and central governments. Our vision is not only to restore HNGIL to its former glory but also to align our efforts with the ‘Viksit Bharat’ vision of Prime Minister Narendra Modi, contributing to India’s growth ambitions as a global industrial powerhouse.”

INSCO’s revival blueprint includes modernising furnaces and equipment, investing afresh into operations, expanding product lines, and strengthening HNGIL’s competitiveness in both domestic and international markets.

Earlier in June 2025, Shrai Madhvani met Prime Minister Modi to discuss INSCO’s investment plans and HNGIL’s ongoing resolution. The group pledged to invest ₹10,000 crore in India over the next five years to boost industrial growth and employment. Prime Minister Modi welcomed the initiative, assuring government support and highlighting its role in enhancing Indo-African business ties.