Energy, exports and efficiency: HNGIL’s roadmap to global competitiveness

At a time when India’s container glass industry is grappling with volatile energy costs, rising sustainability mandates and intensifying global competition, Hindustan National Glass & Industries Ltd (HNGIL) is attempting a strategic reset under new leadership. Suraj Mehta, chief strategy officer at India’s largest glassmaker with seven factories, is leading this transformation with a sharp focus on capital discipline, technology upgrades and selective market diversification. In an interview with ET Online, Mehta outlines how the company is rebuilding its cost base, recalibrating exports, and positioning sustainability and operational efficiency as levers to create a more resilient, globally competitive glass enterprise. Edited excerpts:


ET: Energy and input costs remain the biggest swing factors for glass manufacturers. What are the most immediate strategic levers HNGIL is pulling to stay cost-competitive?
Energy and input costs are indeed the most significant cost variables for the container glass industry, and HNGIL is addressing this through a combination of operational stabilisation, efficiency-led investments and tighter cost governance. In the immediate term, the focus is on improving furnace efficiency and uptime, as even marginal gains in energy consumption translate into meaningful cost savings at scale.
We are prioritising higher use of recycled glass (cullet), which directly lowers melting energy requirements and reduces dependence on virgin raw materials. Parallelly, procurement optimisation and tighter control over input sourcing are being implemented to mitigate volatility in fuel and raw material prices. From a structural standpoint, the ongoing capital investment programme aimed at upgrading plant infrastructure is expected to materially improve energy efficiency, yield and throughput over the next 18–24 months. Rather than relying on short-term price pass-throughs, HNGIL’s strategy is centred on building a lower, more resilient cost base that can absorb energy and input price fluctuations while remaining competitive across market cycles.



ET: Which markets are currently anchoring HNGIL’s export volumes, and how does export realisation compare with domestic sales?
HNGIL’s export strategy is currently in a transition phase. Following the change in ownership, the new shareholders and management team have initiated a structured capital investment programme to upgrade plant conditions, operating efficiency and product quality across manufacturing units. The intent is to bring all furnaces and production lines back to global benchmarks over the next 18–24 months.
As part of this roadmap, the company plans to earmark dedicated furnaces and production lines for export-oriented products, with a clear focus on the food and liquor segments. Europe and North America have been identified as priority target markets once these upgrades are completed.
From a realisation perspective, exports already offer a meaningful premium over domestic sales. In the food segment, export realisations are currently about 10% higher than domestic levels, while in the liquor segment, the premium ranges between 15% and 20%.


ET: With pricing pressure from China and other low-cost producers, what gives Indian container glass—and HNGIL in particular—a sustainable edge in global markets?
Despite pricing pressure from China and other low-cost producers, there are specific market pockets where Indian container glass manufacturers remain competitive. In several geographies, India benefits from freight advantages, shorter lead times and the ability to offer greater flexibility in production and order sizes.
These factors are increasingly important for global customers seeking reliable supply chains and diversification beyond single-country sourcing. For HNGIL, the ongoing plant modernisation programme is expected to further enhance product quality, consistency and delivery reliability, which remain key differentiators in international markets. Rather than competing purely on price, HNGIL’s export strategy is focused on select segments and customers where quality, responsiveness and partnership-oriented engagement create a sustainable edge.


ET: As EPR and recycling mandates tighten, does HNGIL see sustainability as a near-term cost pressure or a medium-term competitive advantage?
HNGIL views sustainability less as a near-term cost pressure and more as a medium-term competitive advantage. While tighter EPR and recycling mandates do entail incremental compliance and operational costs in the short run, these requirements are also accelerating structural shifts in packaging preferences—particularly towards infinitely recyclable materials such as glass.
Over the medium term, higher collection rates, increased use of recycled glass (cullet) and improved energy efficiency are expected to meaningfully lower input and fuel costs, while also reducing dependence on virgin raw materials. This creates a virtuous cycle where sustainability-led initiatives directly support cost optimisation and supply resilience.
From a strategic standpoint, sustainability is also becoming a key customer and regulatory differentiator. Global FMCG, food and beverage companies are increasingly prioritising low-carbon, circular packaging solutions, and manufacturers that are aligned early with these mandates are better positioned to win long-term contracts. HNGIL’s focus is therefore on integrating sustainability into its operating and investment roadmap in a manner that strengthens competitiveness rather than treating it as a compliance-only exercise.


ET: How do you see demand from key end-user sectors such as FMCG, alco-beverages and pharmaceuticals shaping up over the next 12–18 months?
Over the next 12–18 months, demand from key Indian end-user sectors such as FMCG, alcoholic beverages and pharmaceuticals is expected to remain resilient, with a gradual upward bias. FMCG should see steady volume recovery, led by rural demand, easing inflation and premiumisation in categories like personal care and packaged foods. The alco-beverages segment is likely to grow faster in value terms, driven by premium spirits, beer and urban consumption trends. Pharmaceuticals will continue to outperform, supported by chronic therapies, higher healthcare awareness and export momentum.
The forthcoming Union Budget could provide an additional boost to consumption if it follows the previous year’s approach of prioritising disposable incomes through tax reliefs, rural spending and targeted welfare measures. Any such stimulus would have a direct positive impact on packaging demand, including container glass, given its strong linkage with FMCG, alco-beverages and pharma. Moreover, the series of rate cuts delivered by the central bank last year has already supported consumption by improving affordability. With one to two more cuts expected this fiscal, demand across these categories and consequently for container glass could see further acceleration.