CCI Clears INSCO's Bid For HNG, Rejects AGI Greenpac's Objection

AGI Greenpac had questioned the legality of the green channel route used by INSCO for the acquisition, arguing that the filing should have been made jointly by INSCO, HNG, & the committee of creditors

The resolution plan, which received 96.16 per cent approval from HNG’s creditors, outlines an upfront payment of Rs 1,901.5 crore through a blend of equity, quasi-equity, and debt

Source : Pexels

The Competition Commission of India (CCI) has given a decisive nod to Uganda-based Independent Sugar Corporation Ltd (INSCO) for its proposed takeover of Hindusthan National Glass & Industries Ltd (HNG), firmly rejecting objections raised by rival bidder AGI Greenpac Ltd.

In an order dated July 15, 2025, the antitrust watchdog concluded that INSCO’s application, submitted through the green channel route, was fully compliant with regulatory norms. The move clears the way for INSCO to take over the financially distressed glass manufacturer.

AGI Greenpac had questioned the legality of the green channel route used by INSCO for the acquisition, arguing that the filing should have been made jointly by INSCO, HNG, and the committee of creditors (CoC). The company sought cancellation of the approval on these grounds.

However, the CCI found no merit in these claims. According to its assessment, “the green channel (automatic approval) filing made by INSCO was procedurally valid”, and there was no basis to revoke the approval already granted.

INSCO’s Resolution Plan Gets Wide Creditor Backing

The resolution plan, which received 96.16 per cent approval from HNG’s creditors, outlines an upfront payment of Rs 1,901.5 crore through a blend of equity, quasi-equity, and debt. An additional Rs 356.3 crore will be paid over the next three years from HNG’s future earnings, boosting total recovery for secured creditors to Rs 2,207 crore, or roughly 66.18 per cent of the admitted claims worth Rs 3,335 crore.

Funds have also been earmarked for operational creditors, including employees. Notably, INSCO enhanced its initial offer by Rs 356 crore to address creditor expectations. Letters of support from debt funds have been submitted to back both the upfront payments and working capital needs.

Supreme Court’s Earlier Ruling Paved The Way For INSCO

AGI Greenpac was originally the frontrunner for acquiring HNG, having submitted a Rs 2,752 crore bid. However, in January 2025, the Supreme Court disqualified AGI’s offer, citing the absence of required CCI approval. This opened the door for INSCO, the second-highest bidder, to match AGI’s offer.

INSCO subsequently sought cancellation of AGI’s bid and was eventually granted the opportunity to take over HNG, subject to matching the previous offer.

As part of its revival strategy, INSCO has proposed a Rs 1,000 crore capital investment, focusing on rebuilding furnaces and upgrading manufacturing infrastructure to revive HNG’s operations.