89

Thej Swaroop Reddy

Amanjot Singh
Yogesh Kumar
9048717496
Problems relating to low demand
for value added glass in India
 Consumer awareness. Perhaps the most important reason for low volume of value-
added glasses can be attributed to consumers. As glass has gained increased popularity in
the last fifteen years, most consumers in India are not aware of types of value-added glass
and their respective advantages
 Lack of knowledge among architects. It may seem strange that many architects are
not aware of the types of value-added glass available, and many turn to glass processors
to suggest a type of glass for a particular application
 Price sensitivity of Indian consumers. Despite robust economic growth during the
last decade, Indian consumers and the Indian market are very price sensitive. With a
price differential between basic flat glass and value-added glass, consumers would rather
opt for the basic glass types.
 Low penetration in the residential sector. Use of value-added glass has gained
popularity in commercial buildings to a large extent, but residential buildings, which are
a major source of demand for these glass types, are not using much of these products.
Value-added glass is finding application in only a miniscule number of residential units.
 Lack of codes. Another dire problem facing the value-added glass industry is lack of any
codes for the products. There are no government guidelines for the use of any particular
types of glass. There was an initiative by one of the state governments to make the use of
tempered glass mandatory in commercial buildings, but it has yet to see the light of the
day.
 Market Overview

 The global market for smart glass applications was worth $1.0 billion in 2008, a figure that
is expected to reach $1.9 billion in 2013, for a compound annual growth rate (CAGR) of
12.8%.
 Transportation applications dominate the market, generating $889.0 million in 2008.
This should reach $1.6 billion in 2013, for a CAGR of 12.3%.
 Construction applications have the second largest market share, worth $138.7 million in
2008. This should increase at a CAGR of 9.5% to reach $218.3 million in 2013.

Key markets Worldwide

 Earlier, the key markets were only developed parts of the world like North America and
Western Europe
 The dominance of China as a major market for glass has been increasing with economic
liberalization and rising foreign investment. China accounts for about one-third share in
the worldwide demand of flat glass.
 India has one of the lowest per capita flat glass consumption but with rapid growth in
domestic construction and automotive markets, it presents a significant opportunity for
global glass majors.
 Drivers
 A large growth potential in the new upcoming areas like India and china as the
growing opportunities
 No. of HNI’s are increasing and they provide an excellent growth opportunity
 Till now, smart glass is used in malls and office complexes, a big residential sector is
available to explore
 No. of automobiles are increasing so they also provide a good growth to glass
industry

Inhibitors
 Saturation in the western world a certain extent
 High costs of this particular segment of the glass industry often discourages people
to buy such products
 No innovation for the residential sector specific
 Trend Analysis
 The glass industry employed over 143,000 workers in 2001. Over 82% of
glass industry employees are production workers with wages averaging
about 9% above the manufacturing average. Intense competition between
producers of glass and alternative materials has caused the industry to
significantly improve its operations. The fastest growing segments of the
industry have been pressed and blown glass (specialty glass), products of
purchased glass, and mineral wood (fiberglass insulation).
 Upper middle class Indians have one of the highest disposable incomes.
Over 126,000 people are classified as high networth individuals and
another 3 million households earning above 10 lakhs per annum.
-Headlines India
 Luxury industry in India has shown very promising growth over the last
couple of years and is set to grow at a minimum of 25 percent per year over
the next few years with India emerging as a luxury shopping destination
-CII Press release
 3 million households who have earning above 10 lakhs per annum because
average Indian consumer has always been price sensitive and launching the
product without low prices would not attract him. At the same time lower
prices would lead to losses as the margin would not be much great and it might
not be possible to penetrate extremely well in the market to generate high
volumes. This segment is a segment with greater disposable income thus
giving the product a right promotion can lead to a better situation.
Major players
 Saint Gobain
 AIS
 Asahi India
 89
Thej Swaroop Reddy
Amanjot Singh
Yogesh Kumar
Is innovation significant in this
sector?
 Time and time again the big names in the industry had
come out with outstanding innovations like the flame
resistant glass, smart glass …etc.

 But the residential sector in India did not react to any

of them inspite of the fact that HNI segment is
growing at great pace in the country
The probable reasons and how our
innovation will strike their hearts!!
 Glass as we know reflects , absorbs or transmits the light it
receives …till today all the innovations in this have been only
based on the thought of the glass and not on the environment
inside the house

 Our product would promise the consumer of the cooler

temperatures inside the house or the automobile which is very
much longed for in our country
Brief overview on how our product
does it!!
 Light is either reflected absorbed or transmitted when it
strikes the glass or any surface
 Radiation from the roof of the house leaves the house with
multiple reflections and usually people have to open their
doors
 But our product is unique it also provides a 100% gateway
to the radiations outside thus cooling the room without
opening the doors
 This will give the right promotion plan for the company
pursuing this product to penetrate to the residential sector
Breaking the barriers!!
 This product will break the barrier that the segment is
facing today to get into the residential sector because of the
fact that no product is exclusively attractive to the sector
 Thinking of the marketing point of view, Our team thinks
that a set of cartoons ( popular ones) called the GG (Go
Green ) team providing complete service from buying of
the product to upgrading of it , will give the right direction
towards positioning the product