Indian Glass Industry to touch Rs 340 billion by 2015: ASSOCHAM | SupportBiz

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Indian Glass Industry to touch Rs 340 billion by 2015: ASSOCHAM

 
The domestic glass industry is poised to grow to Rs 340 billion by 2015, which will be triggered by the growth in the real estate sector, infrastructural development, retail sector, automotives sales and food & beverages sector, said a study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The current value of Indian glass industry is Rs 225 billion.

D S Rawat, secretary general, ASSOCHAM said while releasing the study that, Indian glass market is set to increase at a compound annual growth rate (CAGR) of 15 per cent over the next three years. The glass consumption growth is expected in construction (10-12 per cent), automotive (20 per cent), consumer goods (15-20 per cent) and pharmaceuticals (15-18 per cent) sectors.

The paper estimated that, the glass industry employs more than 40 lakh people. The organized sector accounts for 35 lakh and unorganized sector provides direct jobs to around 5-6 lakh people. A large number of man-power is involved indirectly in the sector, most of whom are unskilled workers.

About 75 per cent of the total glass industries are concentrated in U.P, Maharashtra, Gujarat, Karnataka and Andhra Pradesh. Gujarat employs the highest number of people in the glass industry followed by Uttar Pradesh, Maharashtra and Andhra Pradesh. About 70 per cent of the total glass production in the unorganized sector in India is contributed by Firozabad glass industry.

The glass packaging industry is facing tough competition from alternative medium. But with the key properties such as inertness, transparency and recyclability, glass will overcome the issues of fragility and bulkiness, which will satisfy the consumers, the study noted.

The paper however highlighted increasing prices of the raw material to be the biggest challenge faced by Indian glass manufacturers.  In his speech, Rawat asked the government to control the increasing prices of raw materials and regularize the cullet collection system in India, which would help the industry to counter the competition from other alternative uses for glass.

The study further pointed out that, the per capita glass consumption in India is 1.2 kg, compared with 8-9 kg in developed countries and 30-35 kg in the US. Also, glass recycling is very high in developed countries at 70-80 per cent, whereas in India, only 40-45 per cent of the finished products come for recycling and the rest go for land filing. Recycling saves 10-20 per cent energy, 30 per cent air pollution and improves furnace efficiency by 20 per cent, added the paper.