The Competition Commission of India (CCI) has dismissed the objections raised by AGI Greenpac Ltd regarding the green channel approval granted to Uganda-based Independent Sugar Corporation Ltd (INSCO) for the proposed acquisition of debt-ridden Hindusthan National Glass & Industries Ltd (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.
INSCO had proposed to acquire 100 per cent of HNG's fresh equity, with a 5 per cent minority stake. The filing was made through the green channel route and was deemed approved on submission.
Last month, the committee of creditors (CoC), including State Bank of India and DBS Bank, cleared INSCO's resolution plan for bankrupt HNG.
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.
The resolution plan, which received 96.16 per cent approval from the CoC, includes an upfront payment of Rs 1,901.5 crore through a combination of equity, quasi-equity and debt.
Additionally, Rs 356.3 crore will be paid over a three-year period to secured financial creditors from HNG's future cash flows.
Secured financial creditors are expected to recover Rs 2,207 crore — approximately 66.18 per cent of their total admitted claims amounting to Rs 3,335 crore.
The proposal also allocates funds for operational creditors, including employees. INSCO has increased its original offer by Rs 356 crore to meet creditor expectations.
Letters of support from debt funds have been submitted to cover the upfront commitment and future working capital requirements.
As part of its revival strategy, INSCO has proposed a capital expenditure plan of Rs 1,000 crore. The investment will focus on rebuilding furnaces and upgrading equipment to restore HNG's manufacturing capabilities.
Initially, AGI Greenpac was the front runner for HGIL, with a bid of Rs 2,752 crore. However, the Supreme Court in January, 2025 rejected the bid on the ground that the company did not have a CCI approval for the acquisition.
INSCO had moved the court seeking cancellation of AGI Greepac's bid since the company did not receive CCI approval.
While rejecting a review petition filed by AGI Greenpac, the Supreme Court directed INSCO, the second-highest bidder, to match the offer given by AGI Greenpac.
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