NCLT clears INSCO’s Rs 2,250 crore revival plan for Hindustan National Glass

Hindustan National Glass is one of the leading glass containers and packaging manufacturers in India. (Courtesy: HNG)

The National Company Law Tribunal (NCLT) Kolkata on Friday approved the revised resolution plan submitted by Uganda-based Madhvani Group owned Independent Sugar Corporation Limited (INSCO) for Hindustan National Glass & Industries Limited (HNGIL), marking a decisive step in the company’s revival.

With this order, the multi-year insolvency battle over India’s largest glass bottle manufacturer moves into its implementation phase, with INSCO set to take charge of operations and begin the revival process.

The Rs 2,250 crore plan, comprising Rs 1900 crore in upfront cash and equity valued at around Rs 350 crore, was submitted on June 8, 2025, in compliance with a Supreme Court directive to match an earlier bid by AGI Greenpac. The Committee of Creditors (CoC) cleared the proposal with 96.16 percent voting share, issuing a Letter of Intent on June 14 that was unconditionally accepted by INSCO.

Under the plan, the cash component will be paid within 30 days of NCLT approval, alongside infusion of working capital and equity issuance to CoC members within 90 days. INSCO has also budgeted around Rs 1,000 crore for capital expenditure to rebuild furnaces and equipment over the coming years.

The tribunal, upholding the CoC’s “commercial wisdom,” declared INSCO the Successful Resolution Applicant and made the plan binding on all stakeholders under Section 31 of the Insolvency and Bankruptcy Code. The moratorium under Section 14 has been lifted with immediate effect, and the Resolution Professional directed to hand over control to INSCO.

An operational creditor’s plea seeking a stay on implementation was rejected for lack of merit.

To fund the acquisition, INSCO has submitted a non-binding term sheet to Cerberus Capital Management. The plan also estimates a capital expenditure of about Rs 1,000 crore to rebuild furnaces and other equipment over the next few years.

AGI Greenpac was initially the front-runner for Hindusthan National Glass with a Rs 2,752 crore bid, but the Supreme Court rejected it in January due to the absence of Competition Commission of India (CCI) approval. INSCO, the second-highest bidder, sought cancellation of AGI Greenpac’s bid and was subsequently directed by the court to match AGI’s offer and have its plan considered and approved by July 2025.

Last week, the Competition Commission of India (CCI) dismissed the objections raised by AGI Greenpac Ltd regarding the green channel approval granted to INSCO for the proposed acquisition of debt-ridden HNG.

According to the CCI's order dated July 15, 2025, the notice filed by INSCO on September 30, 2022, under Section 6(2) of the Competition Act, 2002, was found to be in compliance with relevant provisions.

In its representations submitted, AGI Greenpac alleged that the notice should have been filed jointly by INSCO, HNG, and CoC, and sought that the approval be declared void.

As per CCI's observation, the green channel (automatic approval) filing made by INSCO was procedurally valid and did not find merit in AGI's request for cancellation of the approval.

“We welcome the order. It reinforces the principle that commercial wisdom of CoC is paramount, with judicial review confined to legality and compliance. The NCLT order clears the way for the Madhvani Group’s strategic entry into Indian manufacturing via HNGIL. The plan ensures revival of HNGIL as a going concern, protects employment, and supports creditor recoveries,” an INSCO spokesperson said.