Special Report
Indian Glass Industry — An Overview
PANKAJ DUTIA
pankaj@chemicalweekly.com
INTRODUCTION
Glass is the most eco-friendly packag-
ing 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, lami-
nated safety glass, solar control glass to
insulating glass, which can be used in inte-
riors 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 (Maha-
rashtra) 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, deco-
rative 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
Chemical Weekly September 18, 2007
master craftsmen and entrepreneurs manu-
facturing a vast variety of glass items by
the traditional process. Side by side with
this, we have the most modern plants pro-
ducing glass containers, float-glass etc. by
use of latest technology.
From mouth blown and hand working
processes, the industry has taken to auto-
mation in a big way, although traditional
manufacturing processes have not been
abandoned. Mouth blown and handcrafted
glassware have a dominant role in decora-
tive and table glassware, which are ex-
ported in large quantities.
The majority of raw materials required
by the industry are available locally, pro-
viding excellent scope for growth and de-
velopment.
Types of glass produced
Both float and sheet-glass are pro-
duced in India, with market shares of 89%
and 11%, respectively. However, the
greater proportion of sheet and lower-
quality float capacity will be gradually
phased out and replaced with high-qua-
lity 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 manufac-
turers are gearing up to meet this de-
mand 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);
197
Saint-Gobain Glass India Ltd. (Sri-
perumbudur, Tamil Nadu); and Gujarat
Guardian Ltd. (Ankleshwar, Gujarat). These
three 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 and
700-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 Guardian
Industries International Corp. of the United
States and India’s Modi Group.
 
Asahi India Glass started operations in
December 1994.  It started off as a joint
venture between the Tatas and Asahi (Ja-
pan), 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. It’s a mini float plant, based
on Chinese technology.
 
Saint-Gobain started operations in 2000
and is currently India’s 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 0.76-
kg in 2006, a figure that is still low com-
pared to other countries.
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The enthusiasm shown by architects
toward glass usage has contributed to the
growth of the glass industry, particularly in
segments like IT/ITes [Information techno-
logy/ Information technology enabled ser-
vices], the hospitality sector, malls and
commercial development.
The flat-glass industry grew by about
80% between the year 2000 and 2006 or at
a compound annual growth rate of 10.1%.
Glass containers
Glass 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 faced
from alternative packaging materials.
Glass processing sector
In India, most of the glass usage is in
the raw form, but processing has grown
rapidly in the recent past. While glass pro-
cessing for automotive purposes has been
there in India for some time now (although
the rate of growth has increased signifi-
cantly), the architectural processing seg-
ment is the one that is growing faster.
manufacture of glass and glass products.
Total income of 30 companies studied in-
creased at a rate of 5.8% per annum in the
last 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, with
raw material expenses rising by 9 per cent
per annum and power & fuel expenses at
3.7 per cent per annum. Raw material ex-
penses constituted 28 per cent of total ex-
penses in 2005-06. Profit after tax on total
income has been in the range of 3.4-5.6%
cumulatively in last three years.
Imports of glass
There has been massive surge of
imports of glass, especially from China,
which has impacted the local glass
tableware industry. Manufacturers al-
lege that large quantities of opal and
crystal ware being dumped in the mar-
ket. This has resulted in underuti-
lisation of installed capacity and ad-
versely affected profitability of local
manufacturers.
Total imports of glass and glassware
during 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 total
imports, followed by ground/polished glass
in sheets (16%), table & kitchenware glass
(13%), glass envelops (including bulbs &
tubes) (8%), glass beads & imitation
jewellery articles (7%).
Exports of glass
Increased levels of glass and glass-
ware exports have been recorded in recent
years. Exports have grown from US$35-mn
in 1993-94 to US$240-mn in 2005-06.
Products that achieved strong export
growth in 2005-06 were safety glass, glass
beads/jewelry articles, glass used in con-
struction, containers, table/kitchenware
and mirrors. Export shortfalls were recorded
for ground/polished glass, glass envelops
(bulbs & tubes) and glass fibres.
The Indian market
The two main consuming sectors of

Processing started in India 12 years ago, Table 1

and today there are 49 tempering lines. Financial aggregates of Indian glass industry
Architectural tempering started in 1994; [Rs. Crore]
double-glazing in 1996; and architectural
lamination in 2000. Hardware for glass 2003-04 2004-05 2005-06
started being manufactured in 1998. Total income 2,773 3,022 3,105
Sales 2,743 2,969 2,879
Other than the foreign manufacturers, Total expenses 2,652 2,846 2,918
27 domestic companies process glass with Raw material expenses 684 794 813
more than 40 tempering lines, 15 double- Power, fuel & water charge 488 518 525
glazing lines and six lamination lines, ac- PAT net of P&E 97 169 100
cording to All India Glass Processors Panel, Total forex earnings 332 401 302
affiliated to the All India Flat Glass Manu- Total forex spending 255 371 636
facturers’ Association (AIFGMA).
Profitability [%]
There are 5,000 glass retailers are in PAT net of P&E / Total income net of P&E 3.5 5.6 3.4
the country. PAT net of P&E / Avg. capital employed 4.4 8.1 4.3
PAT net of P&E / Avg. total assets 2.7 4.7 2.5
Industry performance No. of companies 30 30 27
Table 1 below provides the financial Source: CMIE
aggregates of 30 companies engaged in the

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Table 2
Imports of glass & glassware products
[Rs. Million]
2004-05 2005-06
Type of glass Value Share [%] Value Share [%]
Cast & rolled glass in sheets/profiles 28.61 0.32 63.21 0.51
Drawn/blown glass in sheets 84.53 0.95 247.17 1.98
Ground/polished glass in sheets 1,264.92 14.19 2,036.39 16.28
Worked glass 11.93 0.13 11.27 0.09
Safety glass-tampered/laminated 401.28 4.50 375.57 3.00
Multiple walled insulating units of glass 8.09 0.09 18.25 0.15
Glass mirrors 220.14 2.47 381.86 3.05
Glass used for packing/preservation (containers) 239.06 2.68 686.13 5.49
Glass envelops including bulbs & tubes 1,447.87 16.24 948.05 7.58
Glass inners used in vacuum flasks/other vessels 3.58 0.04 17.08 0.14
Table/kitchenware glass 1,106.41 12.41 1,560.13 12.47
Optical elements/signaling glassware 95.59 1.07 128.23 1.03
Watch/clock/ophthalmic glass 655.28 7.35 672.81 5.38
Glass used in construction 185.85 2.08 223.29 1.79
Laboratory & pharmaceutical glassware 156.03 1.75 344.50 2.75
Glass beads & jewelry articles 621.49 6.97 869.61 6.95
Glass fibres, including glass wool 2,124.38 23.83 3,555.85 28.43
Other 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 construction
and automotive industries. 83% of the
glass 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 construction
have been experiencing hyper growth
during the past two to three years. While
production of four-wheelers registered
18.6% growth in 2006, the construction
sector is estimated to be growing at
around 12% per annum.
Almost 80-mn square feet of land in
India is earmarked for shopping malls.
Nowadays, taking into consideration cli-
mate, safety, sound attenuation, energy
conservation and aesthetics, builders are
opting for more glass in their construc-
tion. The glass revolution is also taking
place in the automotive industry, which
is 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 saw
investments totaling Rs. 2,100-crore
[US$4.7-mn] in raw-glass manufacturing
and architectural-glass processing, pri-
marily in the horizontal tempering pro-
cess. The number of architectural tem-
pering lines in the country has grown from
three in 1998 to more than 49 by the end
of 2006.
There are several proposals for new
investments in the industry, including in
the 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 and
glass product market in the coming
years.
This firm isn’t alone in investing. Ko-
rean glass maker, DM Wall System Co
Ltd., is planning to establish another unit
in Chennai. Europe’s leading glass pro-
cessor, Gloverbel (Belgium) will set up
its first glass processing plant in Taloja
near Mumbai.
Though there is a great demand for
glass, which is growing at around 12%, ana-
lysts say supply will far exceed demand at
least till 2009.
With US$478-mn in investments in the
next five years in the processing segment,
the glass industry is likely to witness a
three-fold increase by 2009, say players in

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Table 3
Exports of glass & glassware products
[Rs. Million]
2004-05 2005-06
Type of glass Value Share [%] Value Share [%]
Cast & rolled glass in sheets/profiles 34.91 0.38 16.40 0.16
Drawn/blown glass in sheets 157.41 1.71 190.48 1.85
Ground/polished glass in sheets 734.54 8.00 371.34 3.60
Worked glass 6.73 0.07 3.23 0.03
Safety glass-tampered/laminated 36.75 0.40 84.13 0.82
Multiple walled insulating units of glass 14.46 0.16 2.99 0.03
Glass mirrors 159.68 1.74 258.21 2.51
Glass used for packing/preservation (containers) 1,986.86 21.64 2,662.68 25.85
Glass envelops including bulbs & tubes 1,066.83 11.62 852.30 8.27
Glass inners used in vacuum flasks/other vessels 239.98 2.61 259.95 2.52
Table/kitchenware glass 271.22 2.95 279.64 2.71
Optical elements/signaling glassware 23.01 0.25 19.23 0.19
Watch/clock/ophthalmic glass 41.84 0.46 86.38 0.84
Glass used in construction 340.04 3.70 684.45 6.64
Laboratory & pharmaceutical glassware 257.08 2.80 327.73 3.18
Glass beads & jewelry articles 1,395.28 15.19 2,235.19 21.70
Glass fibers including glass wool 1,932.68 21.05 1,330.12 12.91
Other glass articles 483.29 5.26 637.09 6.18
Total 9,182.59 100.00 10,301.54 100.00

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 the
float-glass segment, in a market which was
predominantly a sheet-glass market till six
years back. Float-glass currently has 70%
market share and is driving the growth in
the sector. As per industry estimates, 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.
The exports market is also looking up.
India could soon emerge as a major export
base for glass makers supplying to the auto-
mobile industry. For example, Saint Gobain’s
plant at Sriperambadur (Chennai) has become
the third lowest cost manufacturer among
the French multinational’s 29 plants across
the world, after Poland and Spain. The engi-
neering cost for its expansion was pegged at
half of what it had cost at the time of original
investment. This is because the company
now uses Indian engineers, while it had to
enlist the services of expatriate engineers
earlier. In the automotive segment, as safety
consciousness goes up, the Indian Govern-
ment and the courts are expected to take
strict views on auto safety standards, just as
they have already done in the case of auto
emission standards. This could lead to sig-
nificant replacement opportunities for glass
markets in the heavy and light commercial
vehicle segments. A glazy road ahead can be
seen for the glass industry.
Challenges for the industry
Two 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 weighed
down by the spiraling cost of manufactur-
ing. Energy costs are increasing, as are raw
material and infrastructure costs. The regu-
latory framework – building codes for safety,
energy codes etc. – need to keep pace with
industry growth and new glass usages.
Looking ahead
The industry is expected to grow at a
rate of 10% per year in the next five years,
given that the Indian economy has been
growing at an average rate of about 8.5% in
the last four years.
Over the long term, glass demand is an-
ticipated to grow at around 3.8% per year,
significantly above global economic growth
rates. Demand for value-added products is
growing at a faster rate than demand for basic
glass, boosting sales of building products
and automotive glazing. Architects are us-
ing more glass and value-added glass. As
legislation and regulations concerning safety,
sound attenuation and energy conservation
fall into place, India will be a significant com-
petitor in the global glass market.

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