CHAPTER 2

CONCEPTUAL FRAMEWORK

The modern Indian Glass Industry is around 100 years old. In the first half of
century the industry was rather primitive, melting of the glass in pot furnaces
and small tank furnaces that were fuelled by either coal or gas. From early
1950 the glass industry started manufacturing using modern equipment, both
for melting and production .Collaboration with multinational companies gave a
boost to the industry.
And Indian industries started using improved furnaces to conserve energy and
therefore reduce cost of production.
India now has four float glass plants in operation using both Foucault and PPG
processes .The glass industry now is well established in the country. Research
is currently undertaken for the technological improvement of finished
products. Companies like Hindustan National Glass, Piramal glass, Ashai Float,
Saint Gobain are producing glasses in the country which is used for domestic
purpose, for industrial use for use of Defence production scientific research
etc. But the major chunk of production is used packaging industry.
Indian industries currently producing following types of glasses:
a) Flat Glass
b) Container Glass
c) Vacuum Glass
d) Fiber Glass
e) Glass Wool
f) Laboratory Glass.
The glass industry is growing at a steady pace with increased urbanization and
orientation of Packaging Industry. But there are other sides also. The industry
is facing rising input cost. Mining cost, transportation cost, levy of Antidumping Policy, Power and Fuel cost are for cause of concern for glass industry
which is to be addressed by competent authority.

Technological Development:
New technologies like NNPB and P&B enables containers to be lighter
and thinner. These technologies offer significant cost reduction.
Driving factors for growth of glass industry
Expansion of Construction and Automotive Industries
Increased acceptance of Green Building concept
Government regulation for Toughened and Laminated glasses Global
concerns about energy conservation and environment

 Nanotechnology---the future in world of glass

Increasing demand of Decorative glasses with digital print technology.

HISTORY OF HINDUSTAN NATIONAL GLASS:

It was in 1952 that visionary entrepreneur Chandra Kumar Somany laid the
foundations for the HNG Group, with the inauguration of Eastern Indias fully
Automatic glass container manufacturing plant at Rishra, near Kolkata. Today,
a family dynasty has been created that leads the way in the local market,
catering to the needs of a diverse range of industries, of liquor and
pharmaceuticals to soft drinks and cosmetics. The farsighted and dynamic
approach of MR. So many, coupled with highly focused management strategies
and leadership qualities of his sons Sanjay and Mukul have turned HNG into a
recognized international player.
Hindustan National Glass & Industries Limited (HNGIL) in a rare breed in the
international glass container community of the 21st century, an extremely
successful family-owned and run business, market leader and owner of four
significant manufacturing plants. With the total melting capacity of 23000
tones\day, the company is constantly in search of improvements. In total, 38
highly productive lines are operated, from which pack efficiencies of better
than
90% are now standard. Introduction of the latest automation practices has also
led to reduce labour costs, workforce having dropped by two-thirds in the
Performance Appraisal System 15 year to approximately 4000.
HNGIL GROUP PROFILE
HNGIL, the largest and most prolific producer of glass containers, operating at
present 10 furnaces at giver location (Rishra, Bahadurgarh, Pondicherry, Nasik,
& Rishikesh) and production lines, In addition HNG has acquired a glass
container manufacturing unit of M/S Haryana sheet Glass Limited at
Neemrana, Rajasthan. A fully integrated group having its own foundry for
casting, well equipped workshop for moulds and spare parts captive power
plants and quarries for sand with fleet for finished goods movement has given
competitive advantage to its customers.

RISHIKESH PLANT:
2 furnaces; combined melting capacity of 340 MT per day.
Furnace ii used for manufacturing of green glass.
6 lines of glass making IS machines.
Off site printing facility with 3 decorating lines

Diversified Productive Capabilities

Alongside the original Rishra factory near Kolkata since 1964 HNG has
operated a plant at Bahadurgarh, close to New Delhi .Flint, amber and green
colours are produced on 13 lines at Rishra, while the larger Bahadurgarh
Facility melts flints amber and cosmetic-grade compositions, operating a total
of 15 lines.
Associate company Ace Glass Containers Ltd has manufacturing capacity at
Rishikesh (flint and green, six lines) and Pondicherry (flint, four lines). Formerly
a 100% subsidiary of USA- based Owens- Illinois Inc.; Ace was acquired in 2002,
when 0-1 took the unexpected decision to exit the Indian market. Prior to the
HNG takeover, production at a third factory in Pune had ceased.
With the recent acquisition of the glass container unit of Larsen & turbo
situated at Nasik in Western India, HNG has now established its presence in all
the four zones of India. The Nasik plant has a melting capacity of 300 tons per
day, operating a total of four lines (flint).
Consumer usage

Spectacles
Glass containers used in laboratory
Bulbs
Dinner sets
Mirror
Home Furniture
Decorative items like chandelier, pots

MAIN CUSTOMERS OR CLIENTS OF THE COMPANY

The clientele includes leading companies like:

Pepsi Company
Coca-Cola company
Cadbury Company
Nestle India Ltd.
Raun Pollack
Dabur India Ltd.
Lakme Lever
Glaxo Welcome
Pfizer
Reckitt & Coleman
Shaw-Wallace
Mith Kline Beecham
UB Group
Mount Shivalik Ltd.

Albert David Ltd

Mc- Dowell Group

Kedia Group

Bayer Group and

Other leading companies.

MANAGEMENT OF THE COMPANY

Board of Directors
S K Somany

Chairman

Sanjay Somany

MD

Mukul Somany

Jt. M D

J P Kasera

Sr. President

RR Soni

Sr. President

R L Khandalia

President

C K Jain

President

S Chaudhury

Vice President

V Sharma

Vice President

FUTURE PLANS OF THE COMPANY

Under the dynamic leadership of Board members, the company the company
has planned super-fast growth to remain as market leader.
The company decided to invest Rs. 4000 millions in next three years touching
life in more ways.
In order to keep with changing technology and demand, the group has
acquired glass division of L& T at Nasik having one furnace of 320 TPD melting
capacity . Also to meet the expanding need of raw materials, the company has
purchased new mining field in different locations of the country and abroad.
Apart from owning quarries, the company operates a state of art induction
furnace to make casting in its own foundry.

EXPORT IMPORT POLICY:

HNG Industries Limited exports their glass product to South East, Middle East,
Africa and First World Countries in Europe & North America.
It follows the EXIM Policy which has some Principal objects.
To accelerate the countrys transition to a globally vibrant economy with
a view to derives maximum benefit from expanding global market
opportunities.

 To stimulated sustained economic growth by providing access to

essential raw materials, components, consumable and capital goods
required for augmented production.
To enhance the technological strength and efficiency of Indian industry
and services, thereby improving their competitive strength while
generating new employment opportunities and encourage the
attainment of internationally accepted standard of quality.
To provide consumer with good quality product at reasonable price

PURCHASE POLICY The purchase policy of the HNG Industries Limited includes the
following:
Company maintains the goodwill of approval vendors.
Purchase preference is given to those who have adopted internationally
known quality management system.
There are continuous checks on inventory levels so as to avoid the
situation of over stocks.
Purchases are done keeping the quality aspect in view.
The company aims at producing the higher quality of glass to satisfy his
customers. This is achieved by:
Adoption and implement of quality utilization of requirement of ISO:
Continuous up gradation of technology for optimum utilization of resources
and manufacturing products in cost effective manner, imbibing the culture of
continuous quality improvement through motivation and plant training of all
employees.
Specimen of various standardizes forms being used in this company for
carrying out the various functions of purchase department as describe is
enclosed at the end.

SALES POLICY:
The sales policy of HNG Industries Limited includes the following:
Company maintains the goodwill of all the customers.
Sales preference is given to those who have adopted internationally
known quality management system.
There is continuous check on inventory levels so as to avoid the situation
of overstocks.
Sales are done keeping the quality aspects in view.