India glassware and metalware exporters eye growth in emerging markets

Government helps suppliers improve sales in Eastern Europe and Asia-Pacific.

India glassware and metalware suppliers have identified Eastern Europe and the Asia-Pacific region as potential growth areas in 2016 and are slowly getting more export inquiries through third-party deals, B2B organizations and direct marketing.

Manufacturers will continue to export products to other top markets, including the UAE, which absorbed 24 percent of overseas shipments in 2014 (based on the top 10 of each category), followed by the US, Saudi Arabia, the UK, Kenya, Brazil and Malaysia.

Exports

India's glassware and metalware exports amounted to $7.1 million in 2014, a decrease of 9% from $7.8 million in 2013, based on compiled categories from the United Nations Comtrade Database.

To help exporters improve sales, the Ministry of Commerce and Industry, through local administrations, is actively working with local metalware manufacturers' associations to further promote quality production and practices. The Ministry for Small and Medium Industries runs the Centre for the Development of Glass Industry, which assists glassware manufacturers in addressing problems and producing export-grade items.

Suppliers acquire materials easier than other sectors due to the presence of regional clusters of manufacturers. They collectively place significant amount of orders from time to time, ensuring the timely availability of materials to small companies.

Competitive advantages

Raw material availability and skilled workers contribute to the major strengths of the sector.

The country is the third largest steel producer and the largest maker of sponge iron globally. Raw materials for glass production, including silica sand, soda ash and dolomite or limestone, are available in India at rates lower than global standards. Iron ore is also available in the country and used as a substitute for the usual types of steel used.

Since the glassware and metalware industries are among the longest existing businesses in India, they have gained many experienced workers, which ensure the continuity of production and trade. Many of them did not undergo formal production training but they eventually picked up skills on the job.

Manufacturers work under regional clusters, which allow them to use their combined resources and networks to gain export orders. For instance, if one company cannot fill a large order, a cluster of manufacturers concentrated in one area or district may assist them.

Challenges

The sector faces several hurdles in achieving sustainable growth, including competition with China, relocation issues and coal importation.

Local manufacturers stand nowhere before the scale or cost of China, which is currently the world's largest manufacturer of glassware. China commands the largely centralized manufacturing of metalware and glassware. They can produce items in a massive scale, which the producers in India cannot surpass.

Small and medium makers in India who have limited capacity to finance relocation are affected by the government's decision to shift large manufacturing plants away from major city limits. They are reportedly forming clusters to minimize shifting costs and maximize their capacities.

Despite being a top producer and consumer of coal, India has had to import due to supply shortage caused by lack of competition and systemic problems in the mining industry. Suppliers import metallurgical or coking coal, which is the main component in producing steel, from Australia and South Africa to meet demand and improve quality. From 2014 to 2015, 43.71 million tons of coking coal have been imported, according to the Ministry of Coal in India.

This article and its contents are provided by the Hinrich Foundation, a partner of Global Sources in promoting trade across Asia. The products and the suppliers featured in this article are export assistance program beneficiaries of the Hinrich Foundation.

See a comparison table of glassware and metalware suppliers on GlobalSources.com