India's glass industry, which is dominated by players like Hindustan National Glass (HNG), has increased the prices by 10-12% in the last few months.
"We are planning to invest Rs 500-600 crore into glass (bottle) manufacturing. We are talking overseas for light weighting technology, and will move ahead once this is finalized," said Ravi Nedungadi, president & CFO, UB Group, a diversified beer-to-airline conglomerate. The group's flagship USL controls around 55% share of India's branded spirits industry.
He said the move was part of a strategy to gain direct control over some of the key inputs such as extra neutral alcohol (ENA) and glass-the soaring prices of which could hurt the profitability. "There are tremendous cost savings to be achieved straight away. USL is now a juggernaut in an industry which is witnessing robust volume growth," Nedungadi added.