Sezal Glass in non-compete pact with Saint-Gobain

CHENNAI: Sezal Glass Ltd and its principal promoters will not enter the float glass business in India for five years as per the non-compete agreement with Saint-Gobain Glass India Limited.

Sezal has sold its float glass business to Saint-Gobain India for Rs 686 crore on a slump sale basis last week. The float glass facility, located in the Jhagadia Industrial Estate in Gujarat, has a capacity to produce 550 million tonnes of glass a day.

"The non-compete obligation is a part of the overall transaction and the promoters have not received any separate non-compete fee from Saint-Gobain, and the entire sale proceeds have been received," Amrrut S. Gada, Chairman and Managing Director of Sezal Glass Limited, said in a statement.

Sezal would use the sale proceeds for clearing all the bank debts, first. The balance would be used for expanding its existing value-added glass business, as well as venturing into new and related businesses through both organic and inorganic routes.