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INTRODUCTIONGlass is the most eco-friendly packag-

ing media. Principal raw materials used inthe manufacture of glass are silica sand,soda ash, calcite, dolomite, etc. All rawmaterials are available indigenously. Eachbit of broken glass can be re-cycled tomanufacture new glass with much lowerconsumption of energy. Most of the rawmaterials are mined in rural and backwardareas of the country providing employmentto families below the poverty line.

The industry now offers a wide range ofproducts from toughened, unbreakable, lami-nated safety glass, solar control glass toinsulating glass, which can be used in inte-riors as well as exteriors of buildings, sayindustry sources. Besides buildings, theindustry has expanded its base to otherareas including jewellery, crystal showpieces and ornaments.

Historical perspectiveGlass industry in India remained in the

form of a cottage industry till the beginningof 20th century. The first glass plant wasset up in August 1908 by LokmanayaBalgangadhar Tilak at Talegaon (Maha-rashtra) near Pune. The plant was financedby collecting one paisa per family per monthfrom the masses and was named as PaisaFund Glass Works. This plant continues tobe in production.

The industry in India has made a steadyprogress since then, particularly after Indiaattained independence. It is also a classicexample of co-existence of smaller and thelargest size plants. Many a delicate, deco-rative and utilitarian glass products aremanufactured by the labour intensivemouth blown process. Firozabad, the glasscity of India, continues to be a place of

master craftsmen and entrepreneurs manu-facturing a vast variety of glass items bythe traditional process. Side by side withthis, we have the most modern plants pro-ducing glass containers, float-glass etc. byuse of latest technology.

From mouth blown and hand workingprocesses, the industry has taken to auto-mation in a big way, although traditionalmanufacturing processes have not beenabandoned. Mouth blown and handcraftedglassware have a dominant role in decora-tive and table glassware, which are ex-ported in large quantities.

The majority of raw materials requiredby the industry are available locally, pro-viding excellent scope for growth and de-velopment.

Types of glass producedBoth float and sheet-glass are pro-

duced in India, with market shares of 89%and 11%, respectively. However, thegreater proportion of sheet and lower-quality float capacity will be graduallyphased out and replaced with high-qua-lity float-glass. Despite the closure ofcertain sheet-glass manufacturing units,total flat glass production has increaseddue to establishment of new float lines.There has been an increase in demandfor float-glass as a result of increasedinvestment from the construction andautomotive sectors. Float-glass manufac-turers are gearing up to meet this de-mand and are planning to increase theirinstalled capacities.

Major playersThe major producers of float-glass in

India are three foreign joint ventures: AsahiIndia Glass Ltd. (Taloja, Maharashtra);

Indian Glass Industry � An OverviewPANKAJ DUTIApankaj@chemicalweekly.com

Saint-Gobain Glass India Ltd. (Sri-perumbudur, Tamil Nadu); and GujaratGuardian Ltd. (Ankleshwar, Gujarat). Thesethree companies meet Western standards.

Gujarat Guardian produces 550-tpd(tons per day); Asahi India�s two plants pro-duce 500-tpd and 750-tpd; and Saint-Gobain�s two plants produce 550-tpd and700-tpd. One other domestic company,Triveni Glass Ltd. (Iradatganj, Allahabad),also produces 200-tpd of float-glass.

Gujarat Guardian was the first float-glass company to be set up in India in 1993.It was a joint venture between GuardianIndustries International Corp. of the UnitedStates and India�s Modi Group.

 Asahi India Glass started operations in

December 1994.  It started off as a jointventure between the Tatas and Asahi (Ja-pan), but with the exit of the Asahi in 2003,it was taken over by Asahi India Safety, anautomotive glass manufacturing company.The merged entity is known as Asahi IndiaGlass Ltd. The company started a new floatplant with a 750-tpd capacity on Jan. 1 inUttaranchal.

 Triveni Glass started operations in

March 1996. It�s a mini float plant, basedon Chinese technology.

 Saint-Gobain started operations in 2000

and is currently India�s largest float-glassproducer. It is a 100% subsidiary of theSaint-Gobain Group.

Recent growth trendsThe per capita consumption of glass,

which was 0.41-kg in 1999, reached 0.76-kg in 2006, a figure that is still low com-pared to other countries.

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The enthusiasm shown by architectstoward glass usage has contributed to thegrowth of the glass industry, particularly insegments like IT/ITes [Information techno-logy/ Information technology enabled ser-vices], the hospitality sector, malls andcommercial development.

The flat-glass industry grew by about80% between the year 2000 and 2006 or ata compound annual growth rate of 10.1%.

Glass containersGlass container production has more

than doubled from approximately 800,000-tons in 1997-98 to some 1.7-mt in 2004-05.This is despite the stiff competition facedfrom alternative packaging materials.

Glass processing sectorIn India, most of the glass usage is in

the raw form, but processing has grownrapidly in the recent past. While glass pro-cessing for automotive purposes has beenthere in India for some time now (althoughthe rate of growth has increased signifi-cantly), the architectural processing seg-ment is the one that is growing faster.

Processing started in India 12 years ago,and today there are 49 tempering lines.Architectural tempering started in 1994;double-glazing in 1996; and architecturallamination in 2000. Hardware for glassstarted being manufactured in 1998.

Other than the foreign manufacturers,27 domestic companies process glass withmore than 40 tempering lines, 15 double-glazing lines and six lamination lines, ac-cording to All India Glass Processors Panel,affiliated to the All India Flat Glass Manu-facturers� Association (AIFGMA).

There are 5,000 glass retailers are inthe country.

Industry performanceTable 1 below provides the financial

aggregates of 30 companies engaged in the

manufacture of glass and glass products.Total income of 30 companies studied in-creased at a rate of 5.8% per annum in thelast three years (for which the data is avail-able), while sales increased by only 2.5%per annum.

As against this, total expenses in-creased by 4.9 per cent per annum, withraw material expenses rising by 9 per centper annum and power & fuel expenses at3.7 per cent per annum. Raw material ex-penses constituted 28 per cent of total ex-penses in 2005-06. Profit after tax on totalincome has been in the range of 3.4-5.6%cumulatively in last three years.

Imports of glassThere has been massive surge of

imports of glass, especially from China,which has impacted the local glasstableware industry. Manufacturers al-lege that large quantities of opal andcrystal ware being dumped in the mar-ket. This has resulted in underuti -lisation of installed capacity and ad-versely affected profitability of localmanufacturers.

Total imports of glass and glasswareduring 2004-05 was valued at Rs. 8,916-mn(US$207-mn), which increased to Rs.12,508-mn (US$288-mn) in 2005-06. Dur-ing 2005-06, imports of glass fibres (includ-ing glass wool) constituted 29% of totalimports, followed by ground/polished glassin sheets (16%), table & kitchenware glass(13%), glass envelops (including bulbs &tubes) (8%), glass beads & imitationjewellery articles (7%).

Exports of glassIncreased levels of glass and glass-

ware exports have been recorded in recentyears. Exports have grown from US$35-mnin 1993-94 to US$240-mn in 2005-06.

Products that achieved strong exportgrowth in 2005-06 were safety glass, glassbeads/jewelry articles, glass used in con-struction, containers, table/kitchenwareand mirrors. Export shortfalls were recordedfor ground/polished glass, glass envelops(bulbs & tubes) and glass fibres.

The Indian marketThe two main consuming sectors of

Table 1Financial aggregates of Indian glass industry

[Rs. Crore]

2003-04 2004-05 2005-06

Total income 2,773 3,022 3,105Sales 2,743 2,969 2,879Total expenses 2,652 2,846 2,918Raw material expenses 684 794 813Power, fuel & water charge 488 518 525PAT net of P&E 97 169 100Total forex earnings 332 401 302Total forex spending 255 371 636

Profitability [%]PAT net of P&E / Total income net of P&E 3.5 5.6 3.4PAT net of P&E / Avg. capital employed 4.4 8.1 4.3PAT net of P&E / Avg. total assets 2.7 4.7 2.5No. of companies 30 30 27Source: CMIE

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Table 2Imports of glass & glassware products

[Rs. Million]

2004-05 2005-06Type of glass Value Share [%] Value Share [%]

Cast & rolled glass in sheets/profiles 28.61 0.32 63.21 0.51Drawn/blown glass in sheets 84.53 0.95 247.17 1.98Ground/polished glass in sheets 1,264.92 14.19 2,036.39 16.28Worked glass 11.93 0.13 11.27 0.09Safety glass-tampered/laminated 401.28 4.50 375.57 3.00Multiple walled insulating units of glass 8.09 0.09 18.25 0.15Glass mirrors 220.14 2.47 381.86 3.05Glass used for packing/preservation (containers) 239.06 2.68 686.13 5.49Glass envelops including bulbs & tubes 1,447.87 16.24 948.05 7.58Glass inners used in vacuum flasks/other vessels 3.58 0.04 17.08 0.14Table/kitchenware glass 1,106.41 12.41 1,560.13 12.47Optical elements/signaling glassware 95.59 1.07 128.23 1.03Watch/clock/ophthalmic glass 655.28 7.35 672.81 5.38Glass used in construction 185.85 2.08 223.29 1.79Laboratory & pharmaceutical glassware 156.03 1.75 344.50 2.75Glass beads & jewelry articles 621.49 6.97 869.61 6.95Glass fibres, including glass wool 2,124.38 23.83 3,555.85 28.43Other glass articles 260.62 2.92 368.58 2.95

Total 8,915.66 100.00 12,507.98 100.00

flat glass in India are the constructionand automotive industries. 83% of theglass produced is used in the construc-tion industry, 15% in the automotive in-dustry and 2% in miscellaneous indus-tries, such as furniture and photo frames.

Both automobiles and constructionhave been experiencing hyper growthduring the past two to three years. Whileproduction of four-wheelers registered18.6% growth in 2006, the constructionsector is estimated to be growing ataround 12% per annum.

Almost 80-mn square feet of land inIndia is earmarked for shopping malls.Nowadays, taking into consideration cli-mate, safety, sound attenuation, energyconservation and aesthetics, builders areopting for more glass in their construc-tion. The glass revolution is also taking

place in the automotive industry, whichis predicted to grow following cut in ex-cise duty on vehicles and the easy avail-ability of flexible automobile loans.

Traditionally dominated by local play-ers, the industry has seen a slew of glo-bal players setting up new units in India.In the past 15 years, the industry sawinvestments totaling Rs. 2,100-crore[US$4.7-mn] in raw-glass manufacturingand architectural-glass processing, pri-marily in the horizontal tempering pro-cess. The number of architectural tem-pering lines in the country has grown fromthree in 1998 to more than 49 by the endof 2006.

 There are several proposals for new

investments in the industry, including inthe processed glass industry. Saint-Gobain has said it would continue to in-

vest to support its plan to reach a mar-ket share of 36% of the Indian glass andglass product market in the comingyears.

This firm isn�t alone in investing. Ko-rean glass maker, DM Wall System CoLtd., is planning to establish another unitin Chennai. Europe�s leading glass pro-cessor, Gloverbel (Belgium) will set upits first glass processing plant in Talojanear Mumbai.

Though there is a great demand forglass, which is growing at around 12%, ana-lysts say supply will far exceed demand atleast till 2009.

With US$478-mn in investments in thenext five years in the processing segment,the glass industry is likely to witness athree-fold increase by 2009, say players in

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the industry. In the next five years, the in-dustry will offer a US$1-bn market for ar-chitectural glassware. Growing quality con-sciousness has led to a rapid growth in thefloat-glass segment, in a market which waspredominantly a sheet-glass market till sixyears back. Float-glass currently has 70%market share and is driving the growth inthe sector. As per industry estimates, thesector has been growing at 8% for the lastcouple of years and is expected to grow at10-15% in the coming years.

The exports market is also looking up.India could soon emerge as a major exportbase for glass makers supplying to the auto-mobile industry. For example, Saint Gobain�splant at Sriperambadur (Chennai) has becomethe third lowest cost manufacturer amongthe French multinational�s 29 plants acrossthe world, after Poland and Spain. The engi-neering cost for its expansion was pegged athalf of what it had cost at the time of original

investment. This is because the companynow uses Indian engineers, while it had toenlist the services of expatriate engineersearlier. In the automotive segment, as safetyconsciousness goes up, the Indian Govern-ment and the courts are expected to takestrict views on auto safety standards, just asthey have already done in the case of autoemission standards. This could lead to sig-nificant replacement opportunities for glassmarkets in the heavy and light commercialvehicle segments. A glazy road ahead can beseen for the glass industry.

Challenges for the industryTwo main problems hounding the indus-

try are overcapacity, in spite of rising de-mand, and lack of codes and standards.

The glass industry is also weigheddown by the spiraling cost of manufactur-ing. Energy costs are increasing, as are rawmaterial and infrastructure costs. The regu-

Table 3Exports of glass & glassware products

[Rs. Million]

2004-05 2005-06Type of glass Value Share [%] Value Share [%]

Cast & rolled glass in sheets/profiles 34.91 0.38 16.40 0.16Drawn/blown glass in sheets 157.41 1.71 190.48 1.85Ground/polished glass in sheets 734.54 8.00 371.34 3.60Worked glass 6.73 0.07 3.23 0.03Safety glass-tampered/laminated 36.75 0.40 84.13 0.82Multiple walled insulating units of glass 14.46 0.16 2.99 0.03Glass mirrors 159.68 1.74 258.21 2.51Glass used for packing/preservation (containers) 1,986.86 21.64 2,662.68 25.85Glass envelops including bulbs & tubes 1,066.83 11.62 852.30 8.27Glass inners used in vacuum flasks/other vessels 239.98 2.61 259.95 2.52Table/kitchenware glass 271.22 2.95 279.64 2.71Optical elements/signaling glassware 23.01 0.25 19.23 0.19Watch/clock/ophthalmic glass 41.84 0.46 86.38 0.84Glass used in construction 340.04 3.70 684.45 6.64Laboratory & pharmaceutical glassware 257.08 2.80 327.73 3.18Glass beads & jewelry articles 1,395.28 15.19 2,235.19 21.70Glass fibers including glass wool 1,932.68 21.05 1,330.12 12.91Other glass articles 483.29 5.26 637.09 6.18

Total 9,182.59 100.00 10,301.54 100.00

latory framework � building codes for safety,energy codes etc. � need to keep pace withindustry growth and new glass usages.

Looking aheadThe industry is expected to grow at a

rate of 10% per year in the next five years,given that the Indian economy has beengrowing at an average rate of about 8.5% inthe last four years.

Over the long term, glass demand is an-ticipated to grow at around 3.8% per year,significantly above global economic growthrates. Demand for value-added products isgrowing at a faster rate than demand for basicglass, boosting sales of building productsand automotive glazing. Architects are us-ing more glass and value-added glass. Aslegislation and regulations concerning safety,sound attenuation and energy conservationfall into place, India will be a significant com-petitor in the global glass market.