CHAPTER 2

CONCEPTUAL
FRAMEWORK

The modern Indian Glass Industry is around 100 years old. In

the first half of century the industry was rather primitive,
melting of the glass in pot furnaces and small tank furnaces
that were fuelled by either coal or gas. From early 1950 the
glass industry started manufacturing using modern equipment,
both for melting and production .Collaboration with
multinational companies gave a boost to the industry.
And Indian industries started using improved furnaces to
conserve energy and therefore reduce cost of production.
India now has four float glass plants in operation using both
Foucault and PPG processes .The glass industry now is well
established in the country. Research is currently undertaken for
the technological improvement of finished products. Companies
like Hindustan National Glass, Piramal glass, Ashai Float, Saint
Gobain are producing glasses in the country which is used for
domestic purpose, for industrial use for use of Defence
production scientific research etc. But the major chunk of
production is used packaging industry.
Indian industries currently producing following types of glasses:
a) Flat Glass
b) Container Glass
c) Vacuum Glass
d) Fiber Glass
e) Glass Wool
f) Laboratory Glass.
The glass industry is growing at a steady pace with increased
urbanization and orientation of Packaging Industry. But there
are other sides also. The industry is facing rising input cost.
Mining cost, transportation cost, levy of Anti-dumping Policy,
Power and Fuel cost are for cause of concern for glass industry
which is to be addressed by competent authority.

Technological Development:
New technologies like NNPB and P&B enables containers
to be lighter and thinner. These technologies offer
significant cost reduction.

 Driving factors for growth of glass industry

Expansion of Construction and Automotive Industries
Increased acceptance of Green Building concept
Government regulation for Toughened and Laminated
glasses Global concerns about energy conservation and
environment
Nanotechnology---the future in world of glass
Increasing demand of Decorative glasses with digital print
technology.
HISTORY OF HINDUSTAN NATIONAL
GLASS:
It was in 1952 that visionary entrepreneur Chandra Kumar
Somany laid the foundations for the HNG Group, with the
inauguration of Eastern Indias fully Automatic glass container
manufacturing plant at Rishra, near Kolkata. Today, a family
dynasty has been created that leads the way in the local
market, catering to the needs of a diverse range of industries,
of liquor and pharmaceuticals to soft drinks and cosmetics. The
farsighted and dynamic approach of MR. So many, coupled with
highly focused management strategies and leadership qualities
of his sons Sanjay and Mukul have turned HNG into a
recognized international player.
Hindustan National Glass & Industries Limited (HNGIL) in a rare
breed in the international glass container community of the
21st century, an extremely successful family-owned and run
business, market leader and owner of four significant
manufacturing plants. With the total melting capacity of 23000
tones\day, the company is constantly in search of
improvements. In total, 38 highly productive lines are operated,
from which pack efficiencies of better than
90% are now standard. Introduction of the latest automation
practices has also led to reduce labour costs, workforce having
dropped by two-thirds in the Performance Appraisal System 15
year to approximately 4000.
HNGIL GROUP PROFILE

HNGIL, the largest and most prolific producer of glass

containers, operating at present 10 furnaces at giver location
(Rishra, Bahadurgarh, Pondicherry, Nasik, & Rishikesh) and
production lines, In addition HNG has acquired a glass
container manufacturing unit of M/S Haryana sheet Glass
Limited at Neemrana, Rajasthan. A fully integrated group
having its own foundry for casting, well equipped workshop for
moulds and spare parts captive power plants and quarries for
sand with fleet for finished goods movement has given
competitive advantage to its customers.

RISHIKESH PLANT:
2 furnaces; combined melting capacity of 340 MT per day.
Furnace ii used for manufacturing of green glass.
6 lines of glass making IS machines.
Off site printing facility with 3 decorating lines

Diversified Productive Capabilities

Alongside the original Rishra factory near Kolkata since 1964
HNG has operated a plant at Bahadurgarh, close to New
Delhi .Flint, amber and green colours are produced on 13 lines
at Rishra, while the larger Bahadurgarh Facility melts flints
amber and cosmetic-grade compositions, operating a total of
15 lines.
Associate company Ace Glass Containers Ltd has
manufacturing capacity at Rishikesh (flint and green, six lines)
and Pondicherry (flint, four lines). Formerly a 100% subsidiary
of USA- based Owens- Illinois Inc.; Ace was acquired in 2002,
when 0-1 took the unexpected decision to exit the Indian
market. Prior to the HNG takeover, production at a third factory
in Pune had ceased.
With the recent acquisition of the glass container unit of Larsen
& turbo situated at Nasik in Western India, HNG has now
established its presence in all the four zones of India. The Nasik

plant has a melting capacity of 300 tons per day, operating a

total of four lines (flint).
Consumer usage

Spectacles
Glass containers used in laboratory
Bulbs
Dinner sets
Mirror
Home Furniture
Decorative items like chandelier, pots

MAIN CUSTOMERS OR CLIENTS OF THE

COMPANY
The clientele includes leading companies
like:
Pepsi Company
Coca-Cola company
Cadbury Company
Nestle India Ltd.
Raun Pollack
Dabur India Ltd.
Lakme Lever
Glaxo Welcome
Pfizer
Reckitt & Coleman
Shaw-Wallace
Mith Kline Beecham
UB Group

 Mount Shivalik Ltd.

Albert David Ltd

Mc- Dowell Group

Kedia Group

Bayer Group and

Other leading companies.

MANAGEMENT OF THE COMPANY
Board of Directors

S K Somany
Chairman
Sanjay Somany

MD

Mukul Somany

Jt. M

D
J P Kasera
President

Sr.

RR Soni
President

Sr.

R L Khandalia
President
C K Jain
President
S Chaudhury
President
V Sharma
President

Vice
Vice

FUTURE PLANS OF THE COMPANY

Under the dynamic leadership of Board members, the company
the company has planned super-fast growth to remain as
market leader.
The company decided to invest Rs. 4000 millions in next three
years touching life in more ways.
In order to keep with changing technology and demand, the
group has acquired glass division of L& T at Nasik having one
furnace of 320 TPD melting capacity . Also to meet the
expanding need of raw materials, the company has purchased
new mining field in different locations of the country and
abroad. Apart from owning quarries, the company operates a
state of art induction furnace to make casting in its own
foundry.
EXPORT IMPORT POLICY:
HNG Industries Limited exports their glass product to South
East, Middle East, Africa and First World Countries in Europe &
North America.
It follows the EXIM Policy which has some Principal objects.
To accelerate the countrys transition to a globally vibrant
economy with a view to derives maximum benefit from
expanding global market opportunities.
To stimulated sustained economic growth by providing
access to essential raw materials, components,
consumable and capital goods required for augmented
production.
To enhance the technological strength and efficiency of
Indian industry and services, thereby improving their
competitive strength while generating new employment
opportunities and encourage the attainment of
internationally accepted standard of quality.
To provide consumer with good quality product at
reasonable price
PURCHASE POLICY -

 The purchase policy of the HNG Industries Limited

includes the following:
Company maintains the goodwill of approval vendors.
Purchase preference is given to those who have adopted
internationally known quality management system.
There are continuous checks on inventory levels so as to
avoid the situation of over stocks.
Purchases are done keeping the quality aspect in view.
The company aims at producing the higher quality of glass to
satisfy his customers. This is achieved by:
Adoption and implement of quality utilization of
requirement of ISO:
Continuous up gradation of technology for optimum utilization
of resources and manufacturing products in cost effective
manner, imbibing the culture of continuous quality
improvement through motivation and plant training of all
employees.
Specimen of various standardizes forms being used in this
company for carrying out the various functions of purchase
department as describe is enclosed at the end.

SALES POLICY:
The sales policy of HNG Industries Limited includes the
following:
Company maintains the goodwill of all the customers.
Sales preference is given to those who have adopted
internationally known quality management system.
There is continuous check on inventory levels so as to
avoid the situation of overstocks.

 Sales are done keeping the quality aspects in view.