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IBEF

Glass and Ceramics Industry in India

October 2007 New Delhi

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The Indian Glass and Ceramics Industry has several segments Glass     Flat Glass Container Glass Specialty Glass Fiber Glass Indian Glass & Ceramics Sector     Tiles Sanitaryware Abrasives Advanced Ceramics Ceramics This document focuses on Glass. Ceramic Tiles and Sanitaryware segments 2 .

5% 1 1 1 1 1 1 1 1 11 11 1 1 1 1 1 1 CAGR 5% 1 1 Production of Bottles and Glassware Production of Fibre Glass .Glass production in India is growing across segments Production of Sheet and Float Glass Million Square Metres 11 11 11 11 11 1 11 1 11 1 11 1 1 Production of Lab Glassware 1 1 11 1 1 1 '111 Tons 1 1 1 1 1 1 1 1 CAGR 6% 1 1 1. 11 1 1 CAGR 67% 11 1 11 1 1 1 11 1 11 11 11 1 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 '111 Tons 11 11 11 11 11 1 1 '111 Tons 1 1 1 1 1 1 1 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 Rapid growth in auto and construction sectors are the key drivers for high growth in sheet and float glass. 11 1. 3 1 1 11 11 11 11 11 11 CAGR 5.

1 1 . replacing traditional production methods.Exports of glass products has also been increasing Glass Exports 11 1 11 1 . has enabled higher exports USA BELGIUM SAUDI ARAB OTHERS U ARAB EMTS CHINA P RP MEXICO POLAND BRAZIL SPAIN ITALY TURKEY UK 4 .1 1 .1 1 .1 11 1 11 1 1 .1 11 1 11 1 1 1 1 11 .1 1 11 11 11 11 11 11 1 1 1 1 1 1 1 1 1 1 1 1 Exports of Glass Items 1111 .11 Bottles and Jars USD Millions 1% 1 1% 1 Glass Fibres Glass Beads 1 % 1 % 1% 1 1 % Float Glass.11 .11 . Electrical Fittings Glass Blocks & Slabs Glass Mirrors 1% 1 1% 1 Other items Country-wise exports 1111 -11 Upgradation in technology. Sheets Glass Bulbs and Tubes.1 1 1 1 11 1 11 11 1 1 11 1 1 .1 CAGR 17% 11 1 1 .

India is the 5th largest producer of tiles in the world 11 11 Production 5 .Demand for Ceramic Tiles has been booming… Production and Capacity of Ceramic Tiles 11 1 11 1 Million Tons 11 1 11 1 1 1 1 11 11 11 11 11 11 11 11 Capacity 11 11 Vitrified and Porcelain Tiles 1% 1 11 1 1 1 11 1 11 1 11 1 11 1 11 1 11 1 11 1 11 1 Ceramic Tiles segment-wise share Wall Tiles 1% 1 Floor tiles 1% 1 Production Top 11 producers of Ceramic Tiles .1111 11 11 Million Tons 11 11 11 11 11 1 11 1 11 1 11 1 11 11 11 1 1 Ita ly Br az il In di a In do ne si a Tu rk ey M ex ic Th o ai la nd hi na Sp ai n C Ira n 11 1 11 1 11 1 11 1 11 1 Growth in building construction has driven surge in demand for ceramic tiles.

Sanitaryware segment has grown rapidly in recent years Construction in India has been booming.1 11. 11 11 1 1 1 -1 11 1 Real Estate Source: CRIS INFAC 1 1 -1 11 1 Infrastructure Industrial Sanitaryware penetration in India is low – about 30 percent – indicating the potential for sustained growth 6 . 11 1 1 1 1 11 1 11 1 Construction Industry Projected Investment Growth 11 1 11 1 11 1 11 1 11 1 11 1 1 1 1 1 1 1 1 1 1 1. 11 11 . 11 1. 11 '111 tons 1.1 11. driving growth in sanitaryware Sanitaryware production in India 11 1 11 1 11 1 1 1 1 11.1 1 11 1 11 1 11 1 11 1 11 1.1 11.1 11. 1.

1 11.1 1 11 11. 11 1.1 1 11 Imports 11. 1. Imports have grown rapidly from a zero base Increasing imports indicate the potential for domestic capacity addition to meet the demand – supply gap 7 . 11 .1 1 11 11 . 11 1. 1 11. 11 Exports growing at 14% CAGR (2003-04 to 2006-07). 11 11 .Both exports and imports of sanitaryware are increasing Exports and Imports of Sanitaryware 1 1 1.1 1 11 Exports 11. 11 1.1 1 11 1 11. 11 1 1 USD Million 1 1 1 1 1 11 .1 1 11 1.

Key Success factors in the Indian Glass and Ceramic Industry • Technological capability • To meet the needs of demanding user segments • Increasing alignment with global standards • Increasing need for product customisation • Energy efficient manufacturing • Energy constitutes nearly 30% of manufacturing costs • Supply chain management • To cater to geographically spread out market • User segments moving towards just in time (JIT) supplies • Branding • End customers are becoming brand conscious • Need for differentiation in a competitive market 8 .

is Saint-Gobain’s largest greenfield venture in India. automotive segments and other applications (solar panels. etc) • Factors for success include • Strong local management. • It is located at Sriperumbudur near Chennai. commitment of resources • Investing in people development to overcome lack of skills • Vertical integration and development of quality supplier base • State of the art technology. with an initial investment of USD 125 million • The plant manufactures float glass for mirrors. strong brand building and wide distribution network • Leveraging Indian operations for exports 9 . photo framing. Tamil Nadu. • Four of its divisions are operating in India. through 6 companies.Case study of a successful player in India – Saint Gobain • The Saint Gobain group entered India in 1996 by acquiring a majority stake in Grindwell Norton. architectural. • Saint-Gobain Glass India Ltd.

including Australia. accounts for about one third of the Indian sanitaryware market • The company exports about 10 percent of its output to countries across the world. architectural processed glass.Profile of other Key Players Asahi India (AIS) • AIS is an integrated glass manufacturer that produces automotive safety glass. UK. and Hindware Home Retail Private Limited. float glass and glass products • The company was formed in 1987. which focusses on home interiors retail 10 . AIS Float Glass and AIS Glass Solutions • It is the largest supplier of automotive safety glass for India’s auto industry. Hindware. and has recorded steady growth since. accountling for nearly 81% of the requirements of the passenger car industry Hindustan Sanitaryware • Hindustan Sanitaryware is the flagship company of the Somany Group. • Turnover in FY 07 was USD 225 million • The company has 3 strategic business units – AIS Auto Glass. Middle East countries and Africa • The group’s other companies in the sector include AGI Glaspac. America. which manufactures high quality galssware. and was set up in 1962 in collaboration with Twyfords of UK • Its brand.

throgh which it not only sells and services sanitaryware products. a Murugappa Group company based out of Chennai. Kunigal (Karnataka) and Karaikal (Pondicherry) • Turnover of USD 205 million (INR 9260 million) in 2006-07. electronic flushing systems and sinks • The company is the biggest sanitaryware player in India and was ranked 10th in the world in 2007 (Ceramics World) • It has a wide distribution network of over 100 showrooms. targeting 30 percent growth • The compant plans to increase penetration in smaller towns and rural markets to fuel growth 11 . exterior and industrial applications • The company has plants in 4 locations – Dewas (Madhya Pradesh). H&R Johnson • One of India’s foremost manufacturers of ceramic tiles. Pen (Maharashtra). but also promotes ideas and concepts to improve bathroom utility and aesthetics Parryware Roca Pvt Ltd. cisterns. The company produces wall and floor tiles for a range of interior. and Roca Sanitario of Spain. bathtubs. • The company is headquartered in Chennai and manufactures a range of bathroom products such as vitreous sanitaryware.Profile of Key Players • The company is a 50:50 JV between EID Parry. seat covers.

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