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email@example.com INTRODUCTION Glass is the most eco-friendly packaging media. Principal raw materials used in the manufacture of glass are silica sand, soda ash, calcite, dolomite, etc. All raw materials are available indigenously. Each bit of broken glass can be re-cycled to manufacture new glass with much lower consumption of energy. Most of the raw materials are mined in rural and backward areas of the country providing employment to families below the poverty line. The industry now offers a wide range of products from toughened, unbreakable, laminated safety glass, solar control glass to insulating glass, which can be used in interiors as well as exteriors of buildings, say industry sources. Besides buildings, the industry has expanded its base to other areas including jewellery, crystal show pieces and ornaments. Historical perspective Glass industry in India remained in the form of a cottage industry till the beginning of 20th century. The first glass plant was set up in August 1908 by Lokmanaya Balgangadhar Tilak at Talegaon (Maharashtra) near Pune. The plant was financed by collecting one paisa per family per month from the masses and was named as Paisa Fund Glass Works. This plant continues to be in production. The industry in India has made a steady progress since then, particularly after India attained independence. It is also a classic example of co-existence of smaller and the largest size plants. Many a delicate, decorative and utilitarian glass products are manufactured by the labour intensive mouth blown process. Firozabad, the glass city of India, continues to be a place of
master craftsmen and entrepreneurs manufacturing a vast variety of glass items by the traditional process. Side by side with this, we have the most modern plants producing glass containers, float-glass etc. by use of latest technology. From mouth blown and hand working processes, the industry has taken to automation in a big way, although traditional manufacturing processes have not been abandoned. Mouth blown and handcrafted glassware have a dominant role in decorative and table glassware, which are exported in large quantities. The majority of raw materials required by the industry are available locally, providing excellent scope for growth and development. Types of glass produced Both float and sheet-glass are produced in India, with market shares of 89% and 11%, respectively. However, the greater proportion of sheet and lowerquality float capacity will be gradually phased out and replaced with high-quality float-glass. Despite the closure of certain sheet-glass manufacturing units, total flat glass production has increased due to establishment of new float lines. There has been an increase in demand for float-glass as a result of increased investment from the construction and automotive sectors. Float-glass manufacturers are gearing up to meet this demand and are planning to increase their installed capacities. Major players The major producers of float-glass in India are three foreign joint ventures: Asahi India Glass Ltd. (Taloja, Maharashtra);
Saint-Gobain Glass India Ltd. (Sriperumbudur, Tamil Nadu); and Gujarat Guardian Ltd. (Ankleshwar, Gujarat). These three companies meet Western standards. Gujarat Guardian produces 550-tpd (tons per day); Asahi Indias two plants produce 500-tpd and 750-tpd; and SaintGobains two plants produce 550-tpd and 700-tpd. One other domestic company, Triveni Glass Ltd. (Iradatganj, Allahabad), also produces 200-tpd of float-glass. Gujarat Guardian was the first floatglass company to be set up in India in 1993. It was a joint venture between Guardian Industries International Corp. of the United States and Indias Modi Group. Asahi India Glass started operations in December 1994. It started off as a joint venture between the Tatas and Asahi (Japan), but with the exit of the Asahi in 2003, it was taken over by Asahi India Safety, an automotive glass manufacturing company. The merged entity is known as Asahi India Glass Ltd. The company started a new float plant with a 750-tpd capacity on Jan. 1 in Uttaranchal. Triveni Glass started operations in March 1996. Its a mini float plant, based on Chinese technology. Saint-Gobain started operations in 2000 and is currently Indias largest float-glass producer. It is a 100% subsidiary of the Saint-Gobain Group. Recent growth trends The per capita consumption of glass, which was 0.41-kg in 1999, reached 0.76kg in 2006, a figure that is still low compared to other countries.
September 18, 2007
4 4. Processing started in India 12 years ago. 2007 . affiliated to the All India Flat Glass Manufacturers Association (AIFGMA).918 813 525 100 302 636 3. 12. fuel & water charge PAT net of P&E Total forex earnings Total forex spending Profitability [%] PAT net of P&E / Total income net of P&E PAT net of P&E / Avg. total expenses increased by 4. The Indian market The two main consuming sectors of The enthusiasm shown by architects toward glass usage has contributed to the growth of the glass industry.5% per annum. and today there are 49 tempering lines.743 2.916-mn (US$207-mn). which has impacted the local glass tableware industry. Hardware for glass started being manufactured in 1998. Profit after tax on total income has been in the range of 3. Architectural tempering started in 1994. most of the glass usage is in the raw form.105 2. During 2005-06. Manufacturers allege that large quantities of opal and crystal ware being dumped in the market. Total income of 30 companies studied increased at a rate of 5.969 2. capital employed PAT net of P&E / Avg. with raw material expenses rising by 9 per cent per annum and power & fuel expenses at 3. Exports of glass Increased levels of glass and glassware exports have been recorded in recent years.022 2. glass envelops (including bulbs & tubes) (8%). double-glazing in 1996. table & kitchenware glass (13%). Glass processing sector In India. While glass processing for automotive purposes has been there in India for some time now (although the rate of growth has increased significantly). especially from China.5 4.773 2. Industry performance Table 1 below provides the financial aggregates of 30 companies engaged in the 198 Table 1 Financial aggregates of Indian glass industry 2003-04 Total income Sales Total expenses Raw material expenses Power. The flat-glass industry grew by about 80% between the year 2000 and 2006 or at a compound annual growth rate of 10. There are 5. table/kitchenware and mirrors. and architectural lamination in 2000.6% cumulatively in last three years. glass used in construction.879 2.7 30 September 18.1 4. total assets No. Total imports of glass and glassware during 2004-05 was valued at Rs. Other than the foreign manufacturers. As against this.3 2.8% per annum in the last three years (for which the data is available). but processing has grown rapidly in the recent past. glass envelops (bulbs & tubes) and glass fibres. Exports have grown from US$35-mn in 1993-94 to US$240-mn in 2005-06. glass beads/jewelry articles.9 per cent per annum. Raw material expenses constituted 28 per cent of total expenses in 2005-06.4 2. containers. followed by ground/polished glass in sheets (16%). while sales increased by only 2.5 27 2004-05 3.1%. particularly in segments like IT/ITes [Information technology/ Information technology enabled services].Special Report manufacture of glass and glass products. This has resulted in underutilisation of installed capacity and adversely affected profitability of local manufacturers. This is despite the stiff competition faced from alternative packaging materials.4-5. of companies Source: CMIE Chemical Weekly 198 [Rs. which increased to Rs.7-mt in 2004-05.7 30 2. according to All India Glass Processors Panel.000 glass retailers are in the country. 15 doubleglazing lines and six lamination lines. Glass containers Glass container production has more than doubled from approximately 800. the hospitality sector.846 794 518 169 401 371 5. Crore] 2005-06 3. Export shortfalls were recorded for ground/polished glass.000tons in 1997-98 to some 1. Products that achieved strong export growth in 2005-06 were safety glass. malls and commercial development. the architectural processing segment is the one that is growing faster.508-mn (US$288-mn) in 2005-06.7 per cent per annum. imports of glass fibres (including glass wool) constituted 29% of total imports.652 684 488 97 332 255 3.6 8. 8. glass beads & imitation jewellery articles (7%). 27 domestic companies process glass with more than 40 tempering lines. Imports of glass There has been massive surge of imports of glass.
2. Million] 2005-06 Value Share [%] 63. including in the processed glass industry. Both automobiles and construction have been experiencing hyper growth during the past two to three years.Special Table 2 Imports of glass & glassware products 2004-05 Type of glass Cast & rolled glass in sheets/profiles Drawn/blown glass in sheets Ground/polished glass in sheets Worked glass Safety glass-tampered/laminated Multiple walled insulating units of glass Glass mirrors Glass used for packing/preservation (containers) Glass envelops including bulbs & tubes Glass inners used in vacuum flasks/other vessels Table/kitchenware glass Optical elements/signaling glassware Watch/clock/ophthalmic glass Glass used in construction Laboratory & pharmaceutical glassware Glass beads & jewelry articles Glass fibres. The glass revolution is also taking Chemical Weekly Report [Rs. taking into consideration climate. In the past 15 years.17 2. 15% in the automotive industry and 2% in miscellaneous industries. primarily in the horizontal tempering process.09 3.58 0.29 344.50 869.03 5.6% growth in 2006.59 655.58 1.95 28.97 23.41 95.560. Europes leading glass processor.264. Korean glass maker.27 375.13 4.28 185.28 0.47 1.66 Share [%] 0. Gloverbel (Belgium) will set up its first glass processing plant in Taloja near Mumbai.62 8. the glass industry is likely to witness a three-fold increase by 2009.23 672.04 12.95 14.39 11.98 0.61 3. This firm isnt alone in investing.036.57 18.38 1.38 260.. which is growing at around 12%.47 2.51 1.92 100.50 0. including glass wool Other glass articles Total flat glass in India are the construction and automotive industries.09 220.15 3. is planning to establish another unit in Chennai.447. Nowadays.98 16.14 239.00 place in the automotive industry. The number of architectural tempering lines in the country has grown from three in 1998 to more than 49 by the end of 2006. the construction sector is estimated to be growing at around 12% per annum. say players in 199 September 18.35 2.68 16.05 5.07 7.95 100.915.13 128.21 247.19 0. which is predicted to grow following cut in excise duty on vehicles and the easy availability of flexible automobile loans. Though there is a great demand for glass.87 3.75 6.32 0. SaintGobain has said it would continue to in199 vest to support its plan to reach a market share of 36% of the Indian glass and glass product market in the coming years.507.43 2.7-mn] in raw-glass manufacturing and architectural-glass processing. sound attenuation. With US$478-mn in investments in the next five years in the processing segment.08 1.86 686. analysts say supply will far exceed demand at least till 2009.555. the industry has seen a slew of global players setting up new units in India.49 2.03 621.08 1.81 223.13 948.05 17.100-crore [US$4. DM Wall System Co Ltd.25 381.61 84. such as furniture and photo frames.24 0. 2007 . Almost 80-mn square feet of land in India is earmarked for shopping malls.106.06 1.85 368.93 401.41 1. 83% of the glass produced is used in the construction industry. builders are opting for more glass in their construction.92 11.00 0. While production of four-wheelers registered 18. energy conservation and aesthetics.83 2.58 12.09 2.00 Value 28.28 8.14 12. Traditionally dominated by local players.124.79 2. safety.53 1. There are several proposals for new investments in the industry.75 6. the industry saw investments totaling Rs.49 7.85 156.
30 259. as are raw material and infrastructure costs.00 Type of glass Cast & rolled glass in sheets/profiles Drawn/blown glass in sheets Ground/polished glass in sheets Worked glass Safety glass-tampered/laminated Multiple walled insulating units of glass Glass mirrors Glass used for packing/preservation (containers) Glass envelops including bulbs & tubes Glass inners used in vacuum flasks/other vessels Table/kitchenware glass Optical elements/signaling glassware Watch/clock/ophthalmic glass Glass used in construction Laboratory & pharmaceutical glassware Glass beads & jewelry articles Glass fibers including glass wool Other glass articles Total the industry.01 41.00 investment. Million] 2005-06 Value Share [%] 16.16 1. Saint Gobains plant at Sriperambadur (Chennai) has become the third lowest cost manufacturer among the French multinationals 29 plants across the world.70 12.68 1. glass demand is anticipated to grow at around 3.85 8.16 1. Challenges for the industry Two main problems hounding the industry are overcapacity. Looking ahead The industry is expected to grow at a rate of 10% per year in the next five years. Architects are using more glass and value-added glass.00 0.73 2.662.40 190. As legislation and regulations concerning safety.85 3.395.23 84. A glazy road ahead can be seen for the glass industry. In the next five years.29 9.38 684. The exports market is also looking up.71 8.301.91 6.5% in the last four years.03 2.08 1.74 21. This is because the company now uses Indian engineers.19 1.52 2.84 6.13 2. Over the long term. India could soon emerge as a major export base for glass makers supplying to the automobile industry.09 10. The glass industry is also weighed down by the spiraling cost of manufacturing.54 0.86 1.75 14. 2007 .59 Share [%] 0. This could lead to significant replacement opportunities for glass markets in the heavy and light commercial vehicle segments.68 483.91 157.986.26 100. while it had to enlist the services of expatriate engineers earlier.70 2. significantly above global economic growth rates. The regu200 latory framework building codes for safety.46 159. in a market which was predominantly a sheet-glass market till six years back.34 3.51 25.60 0.Special Report Table 3 Exports of glass & glassware products 2004-05 [Rs.41 734.46 3.066.40 0. Energy costs are increasing. The engineering cost for its expansion was pegged at half of what it had cost at the time of original 200 Value 34.22 23.38 1.07 0. Chemical Weekly September 18.84 340. energy codes etc.04 257.28 1.932.99 258.330.73 36. after Poland and Spain. boosting sales of building products and automotive glazing. India will be a significant competitor in the global glass market. the sector has been growing at 8% for the last couple of years and is expected to grow at 10-15% in the coming years. Growing quality consciousness has led to a rapid growth in the float-glass segment. as safety consciousness goes up.182.21 2.64 3.23 86.83 239.48 371.19 0.71 0.03 0.95 0.27 2. in spite of rising demand. just as they have already done in the case of auto emission standards. given that the Indian economy has been growing at an average rate of about 8.62 2.54 6. the industry will offer a US$1-bn market for architectural glassware. Float-glass currently has 70% market share and is driving the growth in the sector.68 852.18 21.61 2. need to keep pace with industry growth and new glass usages.80 15.12 637.235. As per industry estimates.64 19.45 327.82 0. and lack of codes and standards. Demand for value-added products is growing at a faster rate than demand for basic glass.8% per year.05 5. For example. sound attenuation and energy conservation fall into place.95 279. the Indian Government and the courts are expected to take strict views on auto safety standards.19 21. In the automotive segment.25 0.18 100.98 271.64 11.
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