Vinay Saran, Senior Vice President- Marketing, HNGIL, has over 23 years of experience in the field of consumer products and consumer durable marketing. He is a management graduate and has worked with reputed companies like Indo Rama Synthetics, Birla Corporation, Vardhaman Textiles and Garware Paints. Currently, he is also the key member of the governing body of the Indian Institute of Packaging panel, CII east- Marketing Committee, All India Management Association, Kolkata, Management Association, National HRD Network and the Indian Institute of Packaging, Kolkata. He has been with HNG for the past four years.
HNG was founded by Mr. C K Somany in 1946 following the commissioning of India’s first fully automated glass manufacturing plant at Rishra (near Kolkata). At present, it is the key player in India’s container glass industry with a pan India presence and its plants located at Rishra, Bahadurgarh, Rishikesh, Neemrana, Nashik and Puducherry. HNG has captured a large share of the Indian market and also has an increasingly satisfied client base in more than 23 countries.
Replying to Anil Mascarenhas of IIFL, Vinay Saran says, “We have robust expansion plans which would need a capex of around Rs. 25bn.”
Give us a brief overview of the industry. What are the changing trends? What is the industry growth rate and how has your growth been?
The Indian container glass industry has been growing at a steady pace over the last five years. The turnover of the industry is seen at around Rs. 45bn and has been growing at a healthy rate of 10-12% driven by demand from alcobev, food and pharmaceutical segment.
The industry witnessed significant changes over the past decade. It used to be once highly fragmented has now been dominated by top few players with a combined capacity of around 5000 tonnes a day. Among these, are Hindusthan National Glass & Industries (HNGIL), Gujarat Glass and Associated Glass Industries (AGI).
What is your market share in container glass segment? Liquor, food and pharma are the main consumers. What is the demand you are seeing here?
Today Hindusthan National Glass & Industries (HNGIL) has a market share of about 55% in the organized glass industry and an annual turnover of more than Rs 1700 Cr., as recorded in FY10-11. Our biggest customer base is the alcobev industry which contributes to 65% followed by the pharmaceutical (10%) and FMCG (12%) industry.
What are the opportunities and challenges in this industry?
We are very much optimistic considering the growth opportunities of the glass industries. All the segments being served by the industry are growing at a very healthy rate with double digit figures. At the same time, the increasing global awareness about health and hygiene among consumers would further create new opportunities for the glass industry as a whole. The biggest challenge in this industry is to do timely expansions in order to cater to the growing demands of the segments being served.
Walk us through the journey of your company and what are your future plans?
HNG group started with a capacity of 30 TPD way back in 1952. We have used our ability and managerial expertise over the period of six decades to become leaders of container glass in India. Our recent acquisition in Germany is just a small step in the international market to achieve our mission of becoming top global glass packaging solution provider.
What are the different products you manufacture and what is the demand for the same. Give us some idea about the size of the industry for each of them.
HNGIL possesses one of the widest portfolios for container glass ranging from 5 ml to 3200 ml across multicoloured bottles (amber, flint, green). We are producing around 15 million bottles a day for the segments mentioned below: