Indians are known to have acquired the knowledge of making glass since time immemorial. Glass industry came into being in India in 16th century when items like bangles, small bottles and flasks were made. By 17th century, enameled glass was produced at a number of places in Karnataka and Uttar Pradesh.  Although glass industry on modern lines was started in the 19th century, the real growth started only after 1932. The first successful organized glass factory was set up in 1941.

The industry underwent large scale modernization after Independence. At present, India is a major producer of glass and glass products.  India’s bilateral trade for Glass and Glass ware products have reached to US$ 2944.34 million during 2022-23.  India has trade deficit of US$ 816.18 million for Glass and Glassware products and hence the trade is not in India’s favour.

An export of Glass and Glassware products from India has reached US$ 1064.08 million during 2022-23 showing a decline of -1.67% compared to corresponding period last year. Exports stood at US$ 680.17 Million in April-October 2023 registering growth of 4.76% from US$ 649.23 Million in the same period last year. Exports of Glass and Glassware products from India have been growing CAGR 1.94% for the last 5 years. The major products being exported from India are Glass and Glassware, glass bottles, fibre Glass, Safety Glass, Float Glass, Mirrors, Glass beads, Table glass, Scientific glass and Ophthalmic lenses.  The major markets for Indian glass and glassware products are USA, Spain, UAE, France, Nepal, Germany, Brazil, Turkey, Mexico and UK.

• It is said that Glass was discovered by the Syrians 5000-7000 years ago, reaching Egypt around 2000 BCE and then to Rome, from where it spread across Europe and the world.
• Historically, Firozabad is popularly known as the “Glass City of India”, where production of glass started back in the 17th Century.
• It remained a cottage industry till the early 20^th
• The first glass plant was set up in August 1908 by Lokmanaya Balgangadhar Tilak at Talegaon, Maharashtra.
• There has been steady progress since independence in 1947.

Beed Work: – Archaeological discoveries in India reveal the existence of glass in very ancient times. It is believed that glass of that period was made out of crushed crystal. The very beautiful articles of superb quality made in olden times is an evidence of perfect skill. It is one of the most beautiful materials contrived by man. Glass beads articles include necklaces, earrings, rings, belts, bands of necklaces, head bands, mostly of white, red and black colour, worn by tribal women particularly Abhjumad Narias of all ages. Craftsman now also combine glass beads with other materials like wood shell, rudraksha, copper and white metal to produce more attractive designs.

Glass industry requires a large number of raw materials. The most important raw material is silica sand which constitutes 75 per cent of the basic materials. This is a bulky material and cannot bear high transportation cost. Obviously the availability of silica sand influences the localisation of glass industry. The other raw materials used for manufacturing glass are soda ash, feldspar, limestone, dolomite, manganese dioxide, barium oxide, sulphur and copper.

Firozabad in Agra district is the largest producer having as many as 100 small factories. The other major centres of glass production are Bahjoi, Naini, Hiranagau, Shikohabad, Hathras, Sasni, Allahabad and Jaunpur. Uttar Pradesh has the advantage of locally available raw materials and a ready market for glass and glass products. The Firozabad cluster is able to form 200 plus Artisans & 20 SHGs supporting the strong work force.

Skilled glass workers known as shisgars of Firozabad have been engaged in the process of glass making for several generations and provide cheap and skilled labour for this purpose. Only coal has to be transported from Jharkhand and West Bengal.

The state has few factories located at different places like Kolkata, Hawrah, Raniganj, Belgachiya, Belgharia, Belur, Sitarampur, Rishra, Durgapur and Asansol. Pure sand of high quality is available from the white Damudas sandstones at Mangalhat and Patharghata. Sand is also obtained from Bargarh and Lohagra near Allahabad. Good quality coal is obtained from the nearby coalfields at Jharia and Raniganj. Good market is readily available in the Hugli industrial region.

The state has few factories. Main centres of glass industry are Mumbai, Talegaon (Pune), Satara, Nagpur and Kolhapur. The industry specializes in bottles, shells, flasks, lampware, beakers and sheet glass.

The other producers are Gujarat (Bharuch, Vadodara, Morvi and Panchmahal), Tamil Nadu (Salem, Chennai, Coimbatore), Bihar (Kandra, Bhawaninagar, Patna), Jharkhand (Jamshedpur, Kahalgaon), Rajasthan (Dhaulpur and Jaipur), Haryana (Ambala and Faridabad), Andhra Pradesh (Warrangal and Hyderabad), Delhi (Shahdara), Punjab (Amritsar), Kerala (Alwaye), Orissa (Barang, Cuttack), Madhya Pradesh (Jabalpur, Gondia), Assam (Guwahati) and Karnataka (Bangalore).

• HS Code 7007 (SAFETY GLASS, CONSISTING OF TOUGHENED (TEMPERED) OR LAMINATED GLASS)

• HS Code 7018 (GLASS BEADS, IMITATION PEARLS, IMITATION PRECIOUS OR SEMIPRECIOUS STONES AND SIMILAR GLASS SMALLWARES, AND ARTICLES THEREOF OTHER THAN IMITATION JEWELLERY; GLASS EYES OTHER THAN PROSTHETIC ARTICLES; STATUETTES AND OTHER ORNAMENTS OF LAMP-WORKED GLASS, OTHER THAN IMITATION JEWELLERY; GLASS MICROSPHERES NOT EXCEEDING 1 MM IN DIAMETER)

• HS Code 7010 (CARBOYS, BOTTLES, FLASKS, JARS, POTS, PHIALS, AMPOULES AND OTHER CONTAINERS, OF GLASS, OF A KIND USED FOR THE CONVEYANCE OR PACKING OF GOODS; PRESERVING JARS OF GLASS; STOPPERS, LIDS AND OTHER CLOSURES, OF GLASS)

• HS Code 7002 (GLASS IN BALLS (OTHER THAN MICROSPHERES OF HEADING 7018), RODS OR TUBES, UNWORKED)

• HS Code 7005 (FLOAT GLASS AND SURFACE GROUND OR POLISHED GLASS, IN SHEETS, WHETHER OR NOT HAVING AN ABSORBENT, REFLECTING OR NON-REFLECTING LAYER, BUT NOT OTHERWISE WORKED)

• HS Code 7019 (GLASS FIBRES (INCLUDING GLASS WOOL) AND ARTICLES THEREOF (FOR EXAMPLE, YARN, WOVEN FABRICS)

• HS Code 7013 (GLASSWARE OF A KIND USED FOR TABLE, KITCHEN, TOILET, OFFICE, INDOOR DECORATION OR SIMILAR PURPOSES (OTHER THAN THAT OF HEADING 7010 OR 7018)

• HS Code 7016 (PAVING BLOCKS, SLABS, BRICKS, SQUARES, TILES AND OTHER ARTICLES OF PRESSED OR MOULDED GLASS, WHETHER OR NOT WIRED, OF A KIND USED FOR BUILDING OR CONSTRUCTION PURPOSES; GLASS CUBES AND OTHER GLASS SMALL WARES, WHETHER OR NOT ON A BACKING, FOR MOSAICS OR SIMILAR DECORATIVE PURPOSES; LEADED LIGHTS AND THE LIKE; MULTICELLULAR OR FOAM GLASS IN BLOCKS, PANELS, PLATES, SHELLS OR SIMILAR FORMS)

• HS Code 9617 (VACUUM FLASKS AND OTHER VACUUM VESSELS, COMPLETE WITH CASES; PARTS THEREOF OTHER THAN GLASS INNERS)

Kind of support would be needed by the industry to become a self reliant country on the Glass products which we import and able to provide the product at competitive rates as offered by other countries.

• Many glass products are made in countries with which India has FTAs. As such, it will be necessary to place these items in the restricted list, while imposing Basic Customs Duty thereon.
• Electricity is a major component of the cost of production, which is available at less than half the price in competitive countries. The Government should consider refunding the actual cost of electricity charges to the industry.
• The Basic Customs Duty of 40% be levied on all-above-mentioned HS Codes. This will not only energise Indian industry, it will draw foreign and domestic investments into manufacturing, conserve foreign exchange, generate much-needed employment and boost government revenue.

Anti Dumping Duty on Soda Ash

• Soda Ash is the key raw material for the Glass Industry (both Container Glass and Float Glass). Cost of Soda Ash in India continues to be the highest in the world on account of unethical practices adopted by local Soda Ash Manufacturers, leading to imposition of Anti-Dumping Duties on countries producing 98% of the global output of Soda Ash, that too continuously since 2000.  Since last 20 years, these 3-4 Soda ash manufactures have a history of getting unjustified protective duties imposed through adopting all legal and illegal means.  This has led to Soda Ash manufacturers earning abnormally high.
• Given below is a short table elaborating the ADD duties which were applicable for imports of Soda Ash from around the world into India making the imports very expensive and the local soda ash manufacturer increased their local pricing to earn super normal profits.

The undue advantages that the soda ash manufacturers are getting due to the imposition of ADD are highlighted below:

• All the Soda Ash manufacturers have managed to increase their revenue at an average CAGR of 15-25% post the imposition of ADD
• Soda Ash Manufacturers earn Super normal profits owing to imposition of ADD on 98% of the Global Soda Ash Manufacturers
• Imposition of ADD has resulted in BIG difference between Domestic Vis-à-vis Imports prices. Domestic prices become excessively high once soda ash is shifted to Southern and Eastern part of India. India Soda ash Plants are concentrated in Gujarat region only

While declining initiation of Sunset Review, DGTR in his order dated 5.4.2018 with a finding that the continuation of dumping and recurrence of injury is unlikely and the domestic manufacturer don’t deserve protective duties any more, in para 4 noted as under:

 “4. Whereas, on examination of the facts in detail, the Authority notes as under: –

1. Despite alleged dumping of subject goods, the average profit earned by the petitioner companies is around 41% of cost of sales, which is way above the one (i.e. 5 %) permitted by the designated authority while constructing Normal Value in an anti –dumping investigation.

It is reported that domestic Soda ash manufacturers adopt all unethical practices to maximize their profits.

Non adherence to Import Price Parity – Domestic Soda Ash Manufacturers never stick to Import Pricing Parity and their Ex Works Prices are always higher by Rs.2000 -5000 PMT than imported Soda Ash Price. This shows their habit and greed for profiteering.  Historically, they jack up Soda Ash Price, whenever there is imposition of Anti-Dumping Duty- Safeguard duty on the product.

Alliance of all Soda Ash Domestic Industry –Domestic Manufacturer of Soda Ash, have formed a cartel to control Soda Ash Price Pan India and they keep making super profits by increasing their rates as per their wish to the consumer Industry such as Glass, Sodium Silicate and Detergent etc.

Generally, there is a gap of Rs.200 to Rs.300 PMT in the price offered by domestic manufacturers to their customers. They discuss price internally amongst themselves and then offer to the customers. Customers have no option other than to take from domestic suppliers.

Soda Ash Classification –Soda Ash comes in 2 forms – Light Soda Ash & Dense Soda Ash. Glass Industry uses only Dense Soda Ash; however, the bulk of the consumption is in Light Soda Ash, which is predominantly used in detergent industry. If Anti-Dumping Duty is imposed then because of detergent industry, glass industries also get impacted.

Foreign Acquisitions & Back ward integration –Domestic Soda Ash Manufacturers are used to be thriving on unrealistically high profitability over years and years together that they have been acquiring Soda Ash Manufacturing companies in US and other countries.

The Key soda ash player’s capacity expansion and their international acquisitions clearly state the malafide intentions of the soda ash manufactures to force the domestic glass industry to procure locally whereas they can use their foreign subsidiaries to export. They are planning to expand capacity in anticipation of imposition of Anti-Dumping Duty which would help them to sell more Soda Ash at Supernormal profits. It is worth noting that despite ADD IMPOSITION in the past there has been continuous increase in Import volume as Local players have not increased their capacities to desired level.

Soda Ash industry in concentrated within 3 Key players and they are situated only in Gujarat. Soda Ash Industry has total of 15,000-20,000 workforce whereas Glass Industry is spread out nationally, and has more than 150 active manufacturers, most of which are in the MSME segment. Glass Industry is an employment intensive industry and provides direct employment to more than 100,000 people and 500,000 people indirectly.

Growth of the Glass Industry has been severely restricted because of high pricing of Soda Ash and Energy Cost in India which is evidenced by the low per capita consumption of both Glass Containers and Float Glass.

All the leading Soda Ash Manufacturers are earning very high profits whereas the Glass industries are bleeding and shutting down. India is losing on key exports as the glass industry is becoming un-viable due to very high cost of key raw material i.e.  Soda Ash Costs at the behest of the Soda Ash Manufacturers. Today global customers are looking at India to substitute supplies from China.  India has tremendous potential for Glass Exports owing to excess local production capacity. India is aiming to get more foreign investment and boost exports and glass industry has the potential to increase exports 10 folds to counter China Exports to the world, but these ADD & CVD Measures form a major hindrance to the high export potential of the glass Industry.

Today CHINA has 50% of worlds’ capacity in GLASS and is the largest exporter of GLASS of EUROPE / LATIN AMERICA /AUSTRALIA and USA. The Indian per capita consumption of Glass is lowest in the world and there lies the opportunity for both local market expansion and becoming a GLOBAL supplier. Indian Glass Industry has all the wherewithal to replace CHINA as dominant player of GLASS. Amongst the major component of cost for Glass Industry in India, it is uncompetitive with China in Power and Fuel and SODA ASH (HS Code: 2836)

As and when Soda Ash prices (which form 60% of the raw material cost of the Glass Industry) are brought to international standards, the Glass Industry can commit to invest more than INR 25,000 crore in India to cater to the enhanced demand within the country, as well as make India an export hub with incremental export of INR 9,000-10,000 crore per annum. This has the potential to create additional employment for 100,000 people directly and more than 500,000 people indirectly.

Processors of glass: This industry largely in MSME sector providing employment to large number of semi-skilled and skilled labor in over 5000 units spread across the country. The primary glass manufacturers continue to suffer the following challenges: 

• Excess capacity in global markets mainly China and easy access to India
• High input costs

There are three major components of cost in this industry. Energy, imported raw materials, local minerals which incur very high logistics cost. Depending on the nature of finished product, the energy cost can be as high as 30-35%.

To reiterate, Glass manufacturing units are continuous process in nature and they run on high-temperature furnaces which cannot be turned off or easily idled and when shut down it can take months to restart. During this COVID-19 pandemic, most of the members had to keep their furnaces consuming energy and thereby incurring loss of 15~20 crore per day.

Market Protection from cheap imports and Industry promotion

• Government to implement Drug Technical Advisory Board recommendation for usage of Glass containers (HS Code: 701090) in Pharmaceutical industry
• Impose CVD / Safeguard duty @ 25% on Imports from China and 20% on other countries on Tempered Glass (HS Code 7007), Glass Beads (HS Code 7018), Glass rods (HS Code 7002), Tinted Glass (HS Code 7005), tableware (HS Code: 7013), fiberglass (HS Code: 7019 (1100/1200/3100/4000), Opalware (HS Code: 7013), Glass bottles (HS Code: 7010)
• Imposition of provisional ADD on Float Glass imports (HS Codes: 70051090 & 70052990) from Malaysia.
• Amnesty for default in export obligations under Advance License, EPCG & EOUs by waiving interest and penalty.

Cost Competitiveness

• Waive the electricity duty on supply of electricity to glass manufacturing furnaces
• GST on Natural Gas, LNG, RLNG, LPG and other Fuel purchases to be made available
• For Soda Ash (HS Code: 2836)
• Basic Custom Duty to be reduced from 7.5% to 0 %
• No Additional Duty like CVD, provisional ADD and Safeguard duty to be imposed on Soda Ash (HS Code: 2836) Imports
• No imposition of ADD on Soda Ash (HS Code: 2836)
• No ADD Investigation in future

Custom duty on Imported CULLET should be brought to 0% (HS Code: 7001)