French flat glass manufacturer Saint-Gobain poised for success in emerging markets

French multinational Saint-Gobain, producers of a range of high performance materials, announced in late October that it would be opening their largest flat glass manufacturing plant in Asia, and one of the largest in the world.

The facility is located in Bhiwadi, a small industrial city in Rajasthan. It covers 136 acres on the ground and, by the time it is fully operational in mid-2015, will be capable of producing just under 1,000 tonnes per day. B Santhanam, Saint-Gobain President, stated that by mid-2015, SGG India would have a total capacity across all operational plants of 9,000 tonnes per day. SGG is stressing the adoption of a "Made in India" strategy and with this new plant operational, the company can state that 95% glass products sold in India will be sourced domestically.

The plant started an initial production line in March 2014, however, was officially opened in late October by French Ambassador to India François Richier, Chief Minister of Rajasthan Vasundhara Raje and Pierre-André de Chalender, chairman and CEO of Saint-Gobain Group.

The market in North India alone accounts for 30% of Saint-Gobain's sales in the country, according to the managing director of Saint-Gobain India, B. Santhanam.

He went on to explain that Saint-Gobain hopes the facility will allow it to double its output for automotive glass products from the current figure of one million to two million by 2020.

SGG focused on increasing their plant infrastructure in India and Rajasthan by acquiring a plant in 2011, bought from Indian competitor Sezal Glass Ltd. It joins Saint Gobain's existing manufacturing complexes in Jhagadia, Sriperumbudrin and Chennai. The company has not commented on its plans once the facility at Bhiwadi attains full functionality.

Nevertheless, as a global leader in flat glass, Saint-Gobain has so far proved keen to meet the demands of emerging markets in India's second and third tier cities. With a rising middle class in these areas and growing disposable income, it would be reasonable to expect further expansion from Saint-Gobain India. 

In 2013, Saint-Gobain's revenue totalled $53.7 billion, 12% of which came from flat glass alone. They hold an 8% share of the global market. Saint-Gobain's recent steps in India suggest that it has a progressive strategy for increasing its share of the global flat glass market as this sector grows over the coming years.

At some point in the next three years, it is expected the market value will rise by 10% from the current figure of $83 billion. This growth will be driven by technological developments leading to new applications of glass as well as the global trend towards energy-efficient products, of which flat glass is one.

Flat glass appears set to outpace GDP growth and, at the very least in India, Saint-Gobain is right there alongside it.

Interested in other aspects of the global flat glass market? Read our latest research: Global Flat Glass Market