Indian flat glass producers have raised concern over the import of flat glass from Indonesia at predatory prices. “The landed cost of Indonesian glass in Mumbai is US$ 175 per ton, while the cost of p…
Indian flat glass producers have raised concern over the import of flat glass from Indonesia at predatory prices. “The landed cost of Indonesian glass in Mumbai is US$ 175 per ton, while the cost of production in India is almost US$ 350 per ton,” said All India Flat Glass Manufacturers“ Association (AIFGMA) chairman Alok Kumar Modi. According to Modi, since the quantities being imported from Indonesia are not very large, it does not make for a case of dumping. However, the import has started affecting the price of flat glass in the country,which is hurting the industry, he added. As per the estimates of AIFGMA, the country“s glass manufacturers were reeling under accumulated losses of Rs 695.66 crore as on March 31, 2000. As per Modi, the flat glass capacity in Indonesia is 1.3 million ton, while the demand in the country is in the range of 0.3-0.5 million ton. This has caused the producers in Indonesia to sell in countries like India at throwaway prices, Modi said. “The Indian market, with a size of 0.5 million ton, is an attractive destination for the Indonesian producers,” he added. “What has made matters worse for the Indian producers is the 30 to 35% excess capacity existing in the industry currently,” Modi said. At the moment, there are six players in the flat glass industry in India: Saint-Gobain, Gujarat Guardian, Asahi, Haryana Sheet Glass, Gujarat Borosil and Triveni Glass. The Indian market is growing at the rate of 8% per annum. This is, however, not the first time that AIFGMA has raised the issue of predatory pricing by Indonesian flat glass producers.