Future of Manufacturing Industry in India

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THE FUTURE OF MANUFACTURING SECTOR IN INDIA

Case Study: Hindustan National Glass and Industrial Ltd. (HNG)

Introduction

Indian packaging industry scenario:
At US$ 14 billion, the Indian packaging industry has been growing at 15% over the last few years. It is expected to accelerate further with increasing urbanization, growing middle class and modern retail. The Indian glass container market stood at US$ 1 billion plus in the fiscal year 2010 with a growth of 12%. The top three players in India are HNG, Piramal Glass and AGI Glaspac.

Segment wise Glass Container Market Scenario:

Food Market
As per Government of India’s vision 2025, the food processing industry is expected to be more than double in size from the current US$ 70 billion to US$ 150 billion in 2015.

Following are the growth drivers:
* Increase in Disposable Income
* Changing Lifestyle in urban and rural middleclass
* Increasing health consciousness with shift from traditional unpackaged formats to packaged branded goods. * Increasing working women population
* Increase in penetration of glass containers- currently 10-12% of all food and beverages are packed in glass containers in India as compared to 40-50% in developed markets

Liquor Market
The size of Indian Made Foreign Liquor (IMFL) market in India is estimated US$ 4.5 billion. The industry is projected to grow at 10-12% per annum over the next few years.

Following are the growth drivers:
* Increasing disposable incomes
* Youth and middle-aged population expected increase from 48% of population (2001) to 54% in 2011. * Cultural change- Acceptance of social drinking and growing drinking habits among women. * Increasing deregulation by State governments

Pharmaceutical Market
India’s pharmaceutical industry is the3rd largest in the world in terms of volume and 14th in terms of value. The Indian domestic market is currently US$ 12.3 billion and is growing at the Compound Annual Growth Rate (CAGR) of 12-15% as against a global average of 4-7%. The pharmaceutical industry is projected to grow to US$ 20 billion by the year 2015.

Following are the growth drivers:
* Increase in disposable income
* Increase in health awareness
* Expansion of healthcare facilities in rural and far-flung areas to further boost demand * Increasing penetration of customised insurance plans would drive affordability of healthcare services

Glass Manufacturing Methodology:
Glass production involves two main methods – the float glass process, which produces sheet glass, and glassblowing which produces bottles and other containers. Broadly, modern glass container factories are three-part operations: the batch house, the hot end, and the cold end. The batch house handles the raw materials; the hot end handles the manufacture proper — the furnaces, annealing ovens, and forming machines; and the cold end handle the product-inspection and -packaging equipment.

Analysis:

There are certain health hazards faced by workers in a manufacturing unit. One common disease found at the HNG plant is Silicosis. Silica is a common, naturally-occurring crystal. It is found in most rock beds and forms dust during mining, quarrying, tunneling, and working with many metal ores. Silica is a main part of sand, so glass workers and sand-blasters are also exposed to silica. Three types of silicosis ocur:

* Simple chronic silicosis -- results from long-term exposure (more than 20 years) to low amounts of silica dust. The silica dust causes swelling in the lungs and chest lymph nodes. This disease may cause people to have trouble breathing. This is the most common form of silicosis. * Accelerated silicosis -- occurs after exposure to larger amounts of silica over a shorter period of time (5 - 15 years). Swelling in the lungs and symptoms occur faster than in simple silicosis. * Acute silicosis -- results from short-term exposure to very large amounts of...
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