sejal architectural glass limited - Securities and Exchange Board of ...

� Processed glass : This comprises
� Insulating glass/ double glazing: Used in star hotels, commercial complexes and
corporate offices for acoustic and thermal insulation
� Toughened glass: Used in high rise buildings for curtain walling, structural glazing,
spandrels, seafronts, banisters.
� Laminated glass: Primarily used for acoustic insulation, shop fronts, etc.
Domestic Glass Industry
For the last few years, the domestic demand for Indian flat (Float/sheet) glass has been
registering a noteworthy increase of 10 -12 per cent per annum and this increase is likely to be
sustained in the coming years as well since the two main consuming sectors of Glass-
Construction and Automotive which are both been maintaining a consistently high rate of
growth.
During the calendar year 2005, the aggregate demand for flat (float/sheet) glass in the Indian
domestic glass market was 1976.54 tonnes per day on an average, whereas it was only 1668.10
tonnes per day on an average during the previous year 2004. During the year 2005, the total
export of float and sheet (including Chinese Float glass) was 142.37 (97.38+44.99) tonnes per
day on an average whereas a few years ago it was as low as 300 to 350 tonnes per day on an
average. The main reason for the decline in exports of float glass in 2005 has been, the
consistent increase in domestic demand in Indian glass market. The fact is that glass
manufacturers get a better price realization in domestic glass market as compared with exports
and they resort to exports only when domestic demand falls short of supply so that a balance
between domestic demand and supply can be restored to get better prices. (Source: Glassyug
December, 2005)
Despite this, market potential in India is still grossly underleveraged. For instance, the
consumption of float glass in India is just 0.55 kg per person. It is one-seventh of China, onetenth
of Thailand and one-twenty eighth of the whole developed world.
(Source: www.ibef.org )
Total Float Glass Demand in India
Float Glass is one of the products of the glass Industry. Various other products are together
commonly known as Flat glass. They comprise of Float Glass, Sheet Glass, figured and wired
Glass and polished plate glass. Today, around 95% of the Flat-glass produced in the world is of
float type. The most significant distinction of float glass from other types of flat glass is its
superior quality and distortion free nature. It is extremely clear with light transmission upto
90%.
1
0.8
0.6
0.4
0.2
0
1998 1999 2000 2001 2002 2003 2004 2005 P 2006 P 2007 P 2008 P
Source: CRISIL Research
Float Glass Capacity Float Glass Demand
82