India’s glass manufacturing industry, which depends on natural gas for its critical round-the-clock operations, is likely to pay hefty price as the government moves to curb supply to industrial users amid uncertainties over liquefied natural gas (LNG) shipments passing through the Strait of Hormuz due to the ongoing conflict in West Asia.
The government on Monday invoked the Essential Commodities Act, 1955, enabling it to regulate the availability and distribution of petroleum products and natural gas. Manufacturing and other industrial consumers will now receive only 80% of their average gas consumption over the past six months.
Glass manufacturing plants use both piped natural gas (PNG) and liquefied petroleum gas (LPG). Currently, plants that run on LPG are struggling to continue operations as they face difficulties in securing supplies.
Industry leaders said that even brief interruptions in gas supply could have severe consequences for the sector as glass manufacturing involves round-the-clock processing.
Industry executives said furnace operations cannot be paused without risking major technical damage and heavy financial losses.
Vinit Kapur, Secretary of All India Glass Manufacturers’ Federation (AIGMF), said that even a 5% cut could hit the industry as any shutdown of plants could lead to irreversible consequences in the short term, especially in terms of long restart time and huge cost associated with it.
Industry executives said they are also approaching the government, seeking relief similar to the one it received during COVID-19 pandemic. At that time, the glass manufacturing industry was granted exemptions despite a nationwide shortage of oxygen, as the industry plays a critical enabling role in several strategic sectors including food safety, pharmaceuticals and healthcare infrastructure.
During the pandemic, glass manufacturers were among the key suppliers of vials and containers used for COVID-19 vaccines, as well as packaging for medicines and essential food products.
India’s glass manufacturing sector produces around 26,000 tonnes of glass per day, with nearly 80% consumed domestically, according to data provided by AIGMF.
The industry manufactures about 12,500 tonnes of container glass daily, along with around 500 tonnes of pharmaceutical glass products such as ampoules, vials and cartridges, which are critical for the storage and distribution of medicines.
LPG shortage is immediate concern
According to industry executives, the curtailment of supply is currently more acute for the plants which run on LPG as some PNG-run plants have dual fuel firing systems enabling them to use both natural gas and furnace oil.
“It is still okay for us to run the plant with 20% furnace oil. At least there is no shortage of furnace oil at present. So, for now, the plants which are having natural gas from a pipe, we are still doing okay,” said Shreevar Kheruka, Managing Director of Borosil Ltd and Senior Vice President AIGMF.
However, he cautioned that the substitution has limits and cannot be expanded indefinitely.
Kheruka said the challenge mainly lies with plants which run on LPG.
He said they are not able to source LPG for Nasik plant which is run on LPG. The plant manufactures ampules and vials which go into the pharmaceutical sector for packaging of drugs, vital drugs.
“We have some stock. But if the stock runs out and we cannot replenish, then we’ll have to shut the plant. And that will be, you know, not a good situation,” he told The Indian Express.
Borosil operates two LPG-run plants —in Nashik and Jaipur — and each plant typically requires 15 to 20 tons of LPG per day.
However, only half of the industry has these dual fuel firing systems.
“The dual fuel is not entirely dual fuel, it’s partial dual fuel. Furnace oil also has certain limitations. You can go to 100% natural gas, but you cannot make 0% natural gas,” he added.
Dual crisis
Industry executives say shutting down glass plants is both financially damaging and operationally complex.
“Glass furnaces are a continuous process. So even if it’s stopped for half an hour, the furnace gets damaged and the cost of each such furnace runs into crores,” said Rajesh Khosla, CEO of Hyderabad-based AGI Greenpac and President of AIGMF.
According to industry estimates, the restart time for a shut-down plant ranges between six and 12 months, while the cost of restarting a furnace can range from Rs 50 crore to Rs 200 crore, depending on the size of the furnace.
Sudden shutdowns also pose major safety risks as uncontrolled cooling can cause furnaces to crack.
At the same time, rising gas prices due to supply shortages are adding further pressure on the industry.
“If gas supply is curtailed the industry will shut down. But if supply continues and gas prices keep rising, glass products will become commercially unviable,” Khosla said.
The glass industry plays a critical enabling role in several strategic sectors including food safety, pharmaceuticals and healthcare infrastructure. 
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