Page 67 - Glass Machinery Plants & Accessories no. 4-2019
P. 67

Lankan manufacturing plants      product launch life-cycle to con-  Moreover, the increasing price
             goes to domestic markets?        ceptualize, design, and produce   of raw materials is a major chal-
             Which are some of your key       personalized glass packaging     lenge faced by Indian container
             export markets?                  solutions that exemplifies brand   glass producers in recent years.
               Vijay Shah:  From our two      value, market requirements, and
             manufacturing plants in India,   product concept. Today, we have     GMP&A: You have your man-
             in Kosamba and in Jambusar,      17 of the world’s top 20 cosmetic   ufacturing presence in three dif-
             around a quarter (25 per cent)   companies as our customers and   ferent countries. How is contain-
             of production goes to the Indian   most of the top global players are   er glass  manufacturing different
             domestic market. And from        part of our customer base across   in these three countries?
             our manufacturing plant in Sri   segments.                           Vijay Shah:  We have our
             Lanka, in Horana, around 60 per                                   manufacturing presence in the
             cent of production goes to the Sri   GMP&A:  What are the key     USA, India, and Sri Lanka, with
             Lankan domestic market. Our      challenges for container glass   an overall capacity of 1,375 tons
             key export markets from India    producers in India?              per day, with 12 furnaces and 55
             are Western Europe (France,        Vijay Shah:  The container     production lines. Of these, India
             Spain, Italy, and UK), Middle    glass industry in India is highly   has nine furnaces, USA has two
             East (UAE, KSA), Brazil, and     fragmented with the presence of   furnaces, and Sri Lanka has one
             USA.                             a large number of small localized   furnace. All our manufacturing
                                              players and about 10 medium      facilities provide similar best-in-
               GMP&A:  Chinese glass pro-     and large players. Many of these   class configuration in terms of
             ducers (both float and container   small manufacturers have small   technology, design, and layout
             glass producers) have been able   furnaces and lack specialized   to serve our global customer
             to gain a huge share in export   skills and expertise. The top three   requirements. The cost of pro-
             markets. What is their position in   producers account for more than   duction in developing markets,
             the perfumery & cosmetic glass   80 per cent of the total installed   such as India and Sri Lanka,
             market? Has their low cost man-  capacity and the pool of experts.   where skilled manpower is cost-
             ufacturing advantage affected      Container glass packaging is   effective, is significantly lower
             your company’s performance?      a labour and specialized skill-  than that of developed markets
               Vijay Shah: We would restrict   intensive industry. Though the   such as USA. From our key man-
             our inputs on container glass    manufacturing process is fully   ufacturing facilities in India and
             producers, as we are only deal-  automated, some of the criti-    Sri Lanka, we are able to produce
             ing in it. It’s true that Chinese   cal functions still require the   glass at significantly lower costs.
             container glass producers are    significant expertise of skilled   The majority of our Cosmetics &
             gradually gaining traction in the   and experienced professionals.   Perfumery container glass bottles
             mass markets, but they are still
             not able to reach the standards
             required for premium or select
             markets. As per our estimates,
             around 85 per cent of the global
             cosmetic glass packaging market,
             by value, is controlled by the top
             12 manufacturers, which doesn’t
             have any Chinese container glass
             producer. The low cost manu-
             facturing from Chinese contain-
             er glass producers hasn’t really
             affected us, as our focus is on
             customers and markets where
             we can provide higher value by
             leveraging our strong capabili-
             ties and quality standards. Our
             strong and long term customer
             base is also one of the key reason
             for our growth. We work closely
             with our customers through their




                                                                          glass machinery plants & accessories 4/2019
                                                                                                             65
   62   63   64   65   66   67   68   69   70   71   72