Glass & Glass Products Industry

 

Overview

Characterized by a well established structure and maturity in terms of implementation of modern processes, this industry reported a marketed size of INR 225 billion in 2014 and is expected to grow to INR 310 billion by the end of 2015. The major domestic demand makers for this industry are the beverage, infrastructure and real estate sectors with the majority of sales volume through container glass segment and value through float glass segment. The domestic Flat Glass sector is about 1.5 million tons in size and has markets not just domestically but internationally as well. Although the per capita glass consumption has increased in India Year on Year, it still has a long way to compete with international market figures. Asahi India Glass Ltd. An integrated glass manufacturer leads the domestic industry participants with a current market capitalization of INR 40.38 billion. Its auto glass segment holds 43% of the market share and Float glass commands 31% of the share in India. Of the whole domestic glass industry, the segment wise distribution of market share is portrayed as follows:

 

Buy Industry Analysis

 

Outlook

Float plants in India are only 9 as compared to 196 in China. Flat glass, which is used mainly in infrastructure segments, has always seen a consistently increasing demand. The demand for processed and reflective glass is on the rise due to its safety benefits and lesser energy consumption. There have been several partnerships and joint ventures among domestic and international companies which date back in time with a view to share technology and add various innovative products to their portfolio. This sector has matured fairly over the years and is a subsidiary sector to other infrastructure and manufacturing based sectors.

 

Future Potential

Indian Glass market is expected to clock a CAGR of about 15 - 18% in the coming years. Since associated sectors like infrastructure, real estate, retail, automotive and food and beverages are seeing an increasing growth rate, glass industry would follow suit. The economic conditions have been volatile but since this industry caters to many segments which will enjoy good growth rates in the future, this industry does have vast potential as the crowded industry moves towards consolidation but before they achieve that, companies will have to erase simple inefficiencies, concentrate on niche products and work towards up gradation of technology, either through domestic manufacturing or through imports, thus increasing their capacities and possibilities for innovation.

There is a lot of scope for companies in the float plants business segment and as the barriers to entry are fairly low, the existing undiversified companies might look to diversify into better products or other verticals too. Because of cost being a major CSF, the industry does look forward to introducing better technology to thus ensure cost efficiency. For the investors as well, this is a fairly safe sector to invest into a company which has strong customer and supplier relationships.

 

What this report contains:

  • A detailed overview of the industry

  • Structure of the industry from both, domestic and international perspectives

  • Related industries that this industry has inter-dependencies with and their understanding

  • Detailed analysis of industry segments in terms of the value and depth of corresponding market

  • Analysis & insights about the elements and critical success factors of this industry using strategic models

  • A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020

  • Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants

  • Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models

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