The domestic production of Glass sheet grew by only 2% in July 2012 to 9463 thousand sq meters after reporting double digit growth for the past three months (April-14%, May-10% and June-11%) when compared to the corresponding month previous year. While on an m-o-m level, there was a slight increase in the production in July 2012 from 9431 thousand sq meters in June 2012, where it recorded a fall of 2% from 9250 thousand sq meters in April 2012.

Fiber Glass is a type of glass that is commonly used for boats, automobiles, water tanks, roofing, pipes and casts. The production of Fiber Glass has been witnessing a fall recently. During July 2012, the production inched up by just 1% at 3533 tonnes, after starting the new financial year 2012-13 with 23% growth in April 2012, which eased to 14% in May 2012, 5% in June 2012 and has further eased in July 2012. Glass sheet and fiber glass WPI index grew by 2% in August 2012 over the same month last year, while on an m-o-m level, the index improved by 1% in August 2012 while remaining almost flat for the previous four months

Toughened Glass is also made from float glass that has been specially heat-treated. It is a type of safety glass processed by controlled thermal or chemical treatments to increase its strength compared with normal glass. As a result of its safety and strength, tempered glass is used in a variety of demanding applications, including passenger vehicle windows, shower doors, architectural glass doors and tables, refrigerator trays, as a component of bulletproof glass, for diving masks, and various types of plates and cookware.

According to the latest data from CSO, the toughened glass production declined by 4% to 220279 sq meters in July 2012, after reporting a growth for the previous four months when compared to the corresponding month last year. On an m-o-m level, also the production fell by 1% in July 2012. The WPI index of toughened glass has been witnessing a fall on a y-o-y level from the month of May 2012. The index fell by 1% in August 2012 over August 2011. While on an m-o-m level, the there has been a slight increase in the index in August 2012 from July 2012.

The Indian Glass industry as a whole has been impacted by the sharp rise in the cost of key raw materials and massive unprecedented depreciation of Indian rupee against the US dollar. Apart from the rise in the cost of raw materials, a sharp rise in the cost of power and energy has also impacted the industry. Major players are taking price hikes to pass on the cost pressure to customers and are expanding their capacities to improve their margins. However, the short term outlook is uncertain due to demand uncertainties and the possibilities of further pressure on margins, while the long term growth intact on the back of growing preference for glass products.

Float glass sector continues to be impacted by poor demand in auto and construction sector. However, the long term demand growth prospects of this segment remains strong, thanks to possible revival in real estate in the medium term, thanks to allowing 51% FDI in retail. Glass bottles are recording healthy growth in production as well as prices. But higher input costs, spike in fixed costs (like salaries, depreciation, interest costs) on expanded capacities will continue to haunt them for a few quarters. So, the sheen in the glass bottles or sheets is not going to be reflected in the producers' financial results any time sooner.