‘India is growing at a fantastic speed, creating fantastic demand for high quality, value-added glass products,’ stated Jean Louis Beffa, chairman and CEO of Saint-Gobain when he visited the country. ‘We have an extraordinary growth platform and a unique opportunity here.’

Most of the modern buildings in India’s prime commercial complexes sport the same kind of exterior: glass. Besides the demand for interior facades, the changing architecture and aesthetic sense has created a strong market for reflective and thick glasses. Almost 80 million square feet of land in India is earmarked for shopping malls and the IT and ITES industry is throwing a new player every couple of weeks. Taking into consideration such aspects as climate, safety, and aesthetics, builders are opting for more glass in their constructions as it is more reliable than any other material when it comes to protection against natural and manmade disasters.

In India, most glass usage is in its raw form, but processing has grown very fast in the recent past. Glass processing for automotive purposes has always existed in India. Recently, the architectural processing segment is the one that’s growing more quickly. It is also predicted that there will be an excess capacity of processed glass. If we leave aside the multinationals (Asahi, St. Gobain, and Guardian) , there are currently about 65 tempering lines, compared with 49 in 2006, 12 in 2003, and three in 1998. The capacity utilization of the processed glass industry is estimated to be less than 45 percent. With continued investments, the competition could increase. It is estimated that about 100 processing lines will be operational by 2009. There are about 20 double glazing and eight laminating units operating in the country.

The share of value-added glass is at a very low level. Though demand for value-added glass has increased at a healthy rate over the last three years, India is nowhere close to Western countries when it comes to using sophisticated glasses.

Major glass processors in India
The Indian glass processing industry is clustered in six geographical locations that fall near the six industrial or metropolitan cities. It is very interesting to note that there are certain areas as big in size as Italy where you won’t find a single glass processing unit. These areas are dependent on the glass processors in the six clusters to cater to their processed glass plants. Can you believe a state having a population of 230 million (yes that’s million) does not have a single processing unit?

The processing clusters are located in and around the following cities:
New Delhi. The national capital has some of the biggest and most reputable glass processors in the country. GSC Glass, Gold Plus (which recently announced setting up a float line), Mico Glass, and Gulati Glass are some of the glass processors in the region, and all are located in a belt of 100 km in the capital region. GSC and Gold Plus Glass stand out among the processors in the capital region; in fact, GSC Glass could be termed the most advanced and largest glass processor in the country. Incidentally, GSC was the first glass processor in the country when it started to process glass in 1994.

Mumbai. The country’s financial capital, as it is dubbed, has some of the very best names in the processing industry. Sejal Glass, Fishfa Glass, and Viral Glass are a few of the outstanding names in this region. The processing industry in this region is benefiting from the boom in construction activities that has been going on for quite some time.

Other than these two major industry clusters, the remaining clusters are in and around the cities of Chennai, Hyderabad, and Bangalore, and on the eastern coast of the country in Kolkatta. One prime reason these clusters formed in these particular regions is the spate of construction that has been happening in these cities over the last five years. If you travel to any of these cities today, you will see how the skyline is changing. Overnight, new structures are rising, and you will see endless facades of glass also rising. Looking at this, one would guess that this is the region where every glass processor would want to be, so what is the reason that a value-added glass industry in the country is not booming?

Reasons for low demand for value-added glass
Consumer awareness. Perhaps the most important reason for low volume of value-added glasses can be attributed to consumers. As glass has gained increased popularity in the last fifteen years, most consumers in India are not aware of types of value-added glass and their respective advantages. Consumers are not aware of the availability of various types of glass and what benefits each one gives. Most customers have the perception that glass is something that is transparent and very fragile.

Fragmented nature of the industry. It is no secret that the glass processing industry in India is very disorganized. Because of the fragmented nature of the industry, glass processors, wholesalers, glaziers, and all other participants are short-term driven. Almost no effort has been put into customer service, reducing costs, or systematically developing markets.

Spiraling costs. The glass industry is also weighed down by the spiraling cost of manufacturing. Energy costs are increasing, as are those of raw materials and infrastructure. The regulatory framework of building codes for safety and energy also needs to keep pace with industry growth and new glass uses. In case value-added glass has to make inroads in India at a scale and pace comparable to European countries, then prices will have to come down and in a hurry.

Lack of knowledge among architects. It may seem strange that many architects are not aware of the types of value-added glass available, and many turn to glass processors to suggest a type of glass for a particular application. Because glass is a relatively new product in building applications, those who use it are still learning about applications and benefits of various types of glass.

Price sensitivity of Indian consumers. Despite robust economic growth during the last decade, Indian consumers and the Indian market are very price sensitive. With a price differential between basic flat glass and value-added glass, consumers would rather opt for the basic glass types.

Low penetration in the residential sector. Use of value-added glass has gained popularity in commercial buildings to a large extent, but residential buildings, which are a major source of demand for these glass types, are not using much of these products. Value-added glass is finding application in only a miniscule number of residential units.

Lack of codes. Another dire problem facing the value-added glass industry is lack of any codes for the products. There are no government guidelines for the use of any particular types of glass. There was an initiative by one of the state governments to make the use of tempered glass mandatory in commercial buildings, but it has yet to see the light of the day. A drive to adopt a ruling similar to that of Germany’s for use of low E glass in windows can drive demand for value-added glass in India.

by Seema Gahlaut