The glass industry reported 10-12% growth in January-April 2010, says R Subhramanian, chairman of Glazing Society of India Growth in the real estate sector has always proved fruitful for several ancillary industries such as building materials (including cement, brick and others), glass, steel and timber, among others. In this regard, consider the Indian glass industry, which is currently valued at Rs 5,500 crore.
The housing sector is the largest consumer of flat glass, while the construction sector consumes around 60% of the total float glass production in the country. Therefore, the common inference is that the market for glass, especially flat and float glass segments, has always been driven by an uptick in demand from user-industries such as real estate and construction.
With the real estate sector (both residential and commercial) showing signs of revival in recent times, analysts and industry leaders opine that this growth would augur well for the glass industry. General public has also expressed the same opinion, as reflected in a recent poll conducted by ConstructionBiz360, where a record 100% answered in the affirmative.
 Expert comment
The realty sector consumes flat glass for an extensive range of applications, comprising doors, windows, partitions and others. “The demand for glass has witnessed considerable upswing over the last 15 years owing to rise in architectural glass consumption. Of late, architects and interior designers prefer glass in both residential and commercial realty segments, as it helps to give an international look,” says R Subhramanian, chairman of Glazing Society of India (GSI), in an exclusive interview with Times Journal of Construction and Design (TJCD).
Mr Subhramanian goes ahead to describe the several benefits of glass cladding. According to him, glass cladding reflects more sunlight inside the building and enhances the visibility of the space; glass is also very good for acoustics engineering; glass cladding is eco-friendly, enduring and aesthetic.
When asked about the outlook for the sector, the GSI chairman said that the industry has reported double-digit growth in the first quarter of 2010. The real estate revival has definitely boosted the glass sector and has helped to shrug off the negative growth witnessed in the middle of 2008-09, owing to the global economic meltdown. The industry registered -5% growth in January-April 2009 over that of the corresponding period in 2008. However, the glass industry reported 10-12% growth in January-April 2010, he notes.
Despite this, Mr Subhramanian sounded a little cautious and said that although the road ahead seems to be bright for the industry, no conclusion can be drawn as of now. The reason being excess supply and increasing raw material prices (comprising fuel, soda ash) and freight costs are posing a threat to the glass manufacturers. He signed off saying, “it is caution and not yet optimism for the glass industry.”
Upbeat outlook
However, reports project that demand for flat glass will witness 5.5% rise globally, driven by healthy construction activity. Besides, evolving markets like India with low per capital consumption has tremendous growth potential for flat glass manufacturers.
“Currently, there is pressure for glass manufacturers in India due to rise in input costs. However, the future is definitely bright for the industry owing to maturing market conditions worldwide and significant recovery in the property sector, primarily commercial realty,” opines Murtaza Shabbir, general manager of Dynaflex Corporation, a mid-sized glass manufacturer in Chennai.
Leading glass firms such as Hindusthan National Glass, Asahi India Glass and Piramal Glass are witnessing resurgence, since 2010-beginning.
Jeeta Bandopadhyay |
