Float Glass

The domestic float glass manufacturers' fortunes can revive only if there is a timely levy of anti-dumping duty on Indonesian imports. A wide difference in the prices of imported and domestic float glass has necessitated protection to the local players in the form of higher duty.

Data made available by the All India Float Glass Manufacturers' Association puts the c&f price of Indonesian float glass at $155 /tonne. The local players state that this price is substantially lower than the average cost of production of $275/tonne and the additional cost of $95 /tonne under ocean freight and inland transportation charges.

 

The performance of domestic players has never been good and the present situation only aggravates matters. Float Glass of India saw its net loss increasing from Rs 51.26 crore in 1995-96 to Rs 87.23 crore in 1996-97. This forced it to shelve its Rs 78-crore project for automotive safety glass. Triveni Sheet Glass incurred a net loss of Rs 22.52 crore in 1996-97 against a profit of Rs 4.02 crore last year.

Gujarat Borosil's net loss moved up from Rs 4.02 crore to Rs 7.95 crore during the same period. The company, which makes flat glass, has been affected by undercutting by domestic float glass producers. Dumping apart, the industry also suffers from excess capacity in the domestic market. In this front, measures taken by Float Glass to look at new applications for glass in an exercise involving architects, builders, fabricators and interior designers could step up demand to some extent. The company also has the advantage of its collaborator --Asahi Glass Company, Japan-- which could help it sell some of its output in the overseas market.