EXTRANCHECK: PRE-LICENSE CHECK: GUJARAT GLASS (P) LIMITED,

UNCLAS NEW DELHI 002179 SIPDIS SIPDIS USDOC FOR 532/OEA/M. NICKSON-D/JAY HATFIELD USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL USDOC FOR 4530/MAC/ANESA/OSA ICE HQ FOR STRATEGIC INVESTIGATIONS STATE FOR EB/ESP E.O. 12958: N/A TAGS: ETTC ETRD BEXP IN SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: GUJARAT GLASS (P) LIMITED, VADODARA, GUJARAT, LICENSE NO. D373190 REF: USDOC 03527 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12(c) of the Export Administration Act. ¶2. Export Control Officer (ECO) Paul Cushman and BIS FSN Prem Narayan conducted a Pre-license Check (PLC) at Gujarat Glass (P) Ltd. (GGL),Vadodara, Gujarat, on May 2, 2007. GGL is located approximately 150 kilometers south of Vadodara. ¶3. BIS requested a PLC at GGL, a private sector company, located at: ONGC Road, Kosamba (R.S.),District Surat 394120, Gujarat, Tel: 91-2629-231-701, Fax: 91-2629-231851, email: sgupta@gujaratglass.co.in, website: www.gujaratglass.com. GGL was listed as the ultimate consignee for one Model VM-2 W/TR1605XB which is 3-Axis vertical for mold making and it has travels of 30 X 20 X 20 inches, with a 2-Axis rotary table 6.3 inch platter on A-Axis capable of 5-Axis simultaneous machining controlled under 2B001. The license applicant was Haas Automation Inc. (Haas),Oxnard, CA. ¶4. ECO along with FSN Narayan met with G. Sathaiya, Assistant General Manager - Quality Control, Chetan Topiwala, Assistant General Manager - Key Account Management and Subhankar Gupta (Gupta),Manager - Mould Engineering, GGL. ¶5. Gupta was not aware of the BIS regulations. This was the first visit of BIS or USG officials to GGL. He provided a copy of Haas Quotation, GGL Purchase Order and GGL End-Use Statement. ¶6. Gupta stated that they already have four 3-Axis machines for making molds for glass containers for pharmaceutical and cosmetics industries. The 5-Axis machine on order will complement their existing machines, allowing them to use several additional features the existing machines do not offer. Gupta described these features as slicing the molds at an angle, tilting the die, making slogs on the mold, making molds with interior curves and the creation of more complicated and attractive designs. He stated the new machine is being bought to enhance production, obtain more flexibility and increase efficiency. Gupta stated that the excellent performance of this Haas machine at GGL's U.S. plant, located in Marlton, New Jersey, prompted them to purchase the same model for this plant. Also, before finalizing the decision to purchase the Haas machine, Gupta attended a demonstration of 5-Axis machine at the Haas Service Center located in Pune, Maharashtra. GGL currently has five furnaces and is adding a sixth to meet the increased demand for their products. ¶7. A portion of GGL factory is being renovated. This is where the sixth furnace will be installed. The workshop housing four 3-Axis machines will also be shifted to the renovated site along with the 5-Axis machine on order. The new site is expected to be fully commissioned in 5-6 months. ECO and Narayan were given a tour of the GGL workshop where the molds for glass containers were being made; they were also shown the bottle manufacturing process. The BIS Team was shown the site where the new furnace will be installed and the workshop will be shifted. The GGL plant runs in three shifts and is guarded 24 hours a day. ¶8. GGL, established in 1981, is a subsidiary of the Nicholas Piramal India Ltd. which is one of the leading pharmaceutical manufacturers in India. GGL has four manufacturing locations including two in Vadodara, Gujarat; and one each in Sri Lanka and the United States. The major customers of GGL are cosmetics and pharmaceutical industries. In the cosmetics segment, GGL exports 40 percent of its total production to the U.S., France, Brazil, Germany, Philippines, and Sri Lanka and 20 percent to the pharmaceutical industry. GGL employs approximately 1800 personnel at all four locations including 600 in Vadodara. GGL's sales for FY 2005-06 were approximately $180 million. ¶9. Recommendation: Post recommends Gujarat Glass (P) Ltd. as a reliable recipient of the controlled U.S.-origin commodity. All indications are that the listed commodity will be used in accordance with U.S. Export Control Regulations. (PSCUSHMAN/PNARAYAN) Pyatt