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Saint-Gobain Glass India to manufacture coated glass

Saint-Gobain Glass India Ltd. plans to begin manufacturing value-added products such as coated glass in the first quarter of 2001.
Mr. Jacques Aschenbroich, president of Compagnie de Saint-Gobain“s …

Saint-Gobain Glass India Ltd. plans to begin manufacturing value-added products such as coated glass in the first quarter of 2001. Mr. Jacques Aschenbroich, president of Compagnie de Saint-Gobain“s Flat Glass Division, said that the investment in the coated glass facility, for which engineering work had started, would be a “few million dollars”, and that the coated glass that would be made at Saint-Gobain Glass India“s plant at Sriperumbudur would be suited for Indian weather conditions. Saint-Gobain would be acquiring a float line in China. The French company was present in other businesses in China. It also had a joint venture for a float line in Korea. The strategy, according to Aschenbroich, was to be present in the local markets in Asia to take care of the demand. However, as the domestic demand was yet to match supply, Saint-Gobain will go in for exports. For instance, Saint-Gobain Glass India will export about 35% of its total production. If the Indian market grows at the rate of 10% per annum, in three to four years the company will not need to export, Aschenbroich said. Mr. B. Santhanam, managing director, Saint-Gobain Glass India Ltd., said the Sriperumbudur facility could manufacture glasses of 2 mm to 19 mm thickness depending on the market demand. Float glass now accounts for almost 75% of all the glass in India. Saint-Gobain“s strategy would be to grow the market for float glass in India. This would be done by brand building, market segmentation and retailing initiatives. The company would work with some of the end users such as architects and builders to promote the use of glass. It would also invest in some downstream processes. Inaugurating the plant, the Tamil Nadu Chief Minister, M. Karunanidhi, said that Saint-Gobain had assured him that it would bring in an additional Rs 500 crore investments at the site. However, Aschenbroich said that the company“s investments would depend on how this venture develops. The investment could not be quantified now, he said.

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