Glass Manufacturing sector from Investment point of view

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Hi all, I hope you are doing well. In our ongoing blog series of knowing various sector from investment point of view we are going to discuss the Glass Manufacturing sector next.

Today we will know more about listed players in glass manufacturing sector, their packaging materials and many more products from it used in our daily life. Let’s dive in.

While doing Fundamental analysis of glass manufacturing companies we need to use top down approach in order to find out companies working specific sector. Now that we are discussing Glass manufacturing and their products in this blog.

I have given brief of the some of the listed players looking at top 3 based on their market Cap as of Sept 13th. There are many more listed companies in this glass manufacturing sector.

Drivers for the Glass Manufacturing Industry in India

  1. Increasing trend of replacing brick and granite building exteriors with laminated flat glass.
  2. Glass is harder to break and provides enhanced protection against attempted break-ins, accident injury and severe weather conditions.
  3. Preferred choice of material in offices to reduce stress as it allows the propagation of natural day light and enhances lightening conditions.
  4. Rapid urbanization causing increased demand for urban office space, malls and residential properties. Growing popularity of high-performance glasses in buildings, led by hot climatic conditions.
  5. Government’s push for solar energy, coupled with growing environmental concerns leading to the growing demand for solar glasses.

Asahi India Glass Ltd. (AIS)

Asahi India Glass Ltd. (AIS) is India’s leading value-added and integrated glass solutions company and a dominant player both in the automotive and architectural glass segments.

It commands 73% market share in the Indian passenger car glass market. Established in 1984, AIS’s footprint today spans the entire spectrum of the automotive and architectural glass value chains. AIS provides end to end solutions in the entire glass value chain – from the manufacturing of float glass, processing, fabrication to installation services.

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As a sand-to-solutions company, AIS offers varied types of glass products and services to its customers in India and across the globe

Asahi India Locations

Financial Performance

  • The Company posted ` 2,656.13 crores net revenue for FY 2019-20 as against ` 2,931.91 crores for the previous year.
  • Operating profit (before interest and depreciation) was at ` 453.81 crores for the financial year as against ` 534.12 crores for FY 2018-19.
  • The Company’s net profit before tax reduced to `170.69 crores in FY 2019-20 from `280.39 crores in FY 2018-19.
  • The Company’s Net Profit (before OCI) for the year saw a 19.17% drop to ` 153.72 crores as compared to ` 190.18 crores in FY 2018-19.
  • The Company’s Earning Per Share for FY 2019-20 was ` 6.32 as compared to ` 7.82 for FY 2018-19

Industry Overview (Source Annual Report year 2020)


The Indian Automotive industry faced one of its most difficult years in FY 2019-20. The overall slowdown in demand, BS-VI compliance burden on costs and timeline, and outbreak of COVID-19 pandemic weighed heavily on the entire industry. Consequently, it witnessed negative growth in all its key categories.

As per data from Society of Indian Automobile Manufacturers, Passenger Vehicles closed the financial year with a de-growth in production by 13%. Commercial Vehicles production recorded an even sharper contraction of 32.4%. In a year that witnessed even Medium & Heavy Commercial Vehicles (MHCVs) and Light Commercial Vehicles (LCVs) post negative growth of 47.3% and 22.5% respectively, the overall industry production posted a drop of 17%.


In the residential real estate segment, the uncertainties in the Indian economy coupled with poor consumer sentiment dampened any chance of growth.

COVID-19 pandemic further deteriorated the fortunes of the segment as consumers were keen to focus solely on ready-to-move-in or almost-complete homes.

According to data from PropTiger, housing sales declined by 11% during the fiscal to 3.22 lakh units across nine cities, but demand for ready to move in flats increased by over 19%, driven by NIL GST and no risk of any delays.

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This is despite the announcement of the alternative investment fund of ` 25,000 crores to facilitate the completion of stuck affordable and mid-segment homes.

The Retail growth continued to remain subdued.

Product Range

Fundamental Analysis via

Market Cap: 5,550 Cr. Stock P/E: 109.79 Sales Growth (3Yrs): 4.07 % Return on equity: 11.91 % PEG Ratio: 3.34
Current Price: 228.30 Dividend Yield: 0.44 % Listed on BSE and NSE Debt to equity: 1.35 PB X PE: 467.71
52 weeks High / Low 276.95 / 118.40 ROCE: 10.64 % Company Website Pledged percentage: 8.06 % Average return on equity 3Years: 15.03 %
Book Value: 53.57 ROE: 11.91 % Face Value: 1.00 Promoter holding: 54.27 % Average return on equity 5Years: 17.07 %

La Opla Rg

La Opala RG Limited is the largest player in the Indian opalware sector with a dominant market share. The opalware category is fast gaining consumers’ attention, resulting in enhanced traction from diverse categories of consumers.

The Company has two manufacturing units, one at Madhupur (Jharkhand) and the other at Sitarganj (Uttarakhand). The Company deepened its distribution network and brand recall. The Company is a recipient of Top Export Award & Trophy from EPCH (Export Promotion Council for Handicrafts) and CAPEXIL (Chemical and Allied Export Promotion Council)

In Numbers:

  • 1 (Rank), La Opala among the opalware players in India
  • 2 Manufacturing facilities across India
  • 3 Brands
  • 7 Sub-brands
  • 30 (Countries) Export presence
  • 50% Market share in organized opalware sector
  • 200 Distributors, 2019-20
  • 12,000 Retailers, 2019-20

Indian opalware market overview

Opal glass in an opaque heat resistant material. The size of the Indian opalware market was pegged at H550 Crore in 2019. Currently, India’s tableware market is dominated (skewed towards) by steel followed by bone china.

However, interestingly, except for opalware no other segment has established branded products which makes the market fragmented. The Indian retail market contributed 10% of the GDP in 2019-20 but the lockdown due to the coronavirus pandemic has had an effect on the overall retail sector which in turn will impact the opalware market.

Shareholding Pattern(%) of top 5 shareholders other than promoter group


All above details courtesy Annual report of the company for year 2020

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Fundamental Analysis via

Market Cap: 2,487 Cr. Stock P/E: 40.85 Sales Growth (3Yrs): 4.70 % Return on equity: 15.26 % PEG Ratio: 2.82
Current Price: 224.05 Dividend Yield: 0.54 % Listed on BSE and NSE Debt to equity: 0.01 PB X PE: 186.27
52 weeks High / Low 251.85 / 130.50 ROCE: 18.92 % Company Website Pledged percentage: 0.00 % Average return on equity 3Years: 14.97 %
Book Value: 49.11 ROE: 15.26 % Face Value: 2.00 Promoter holding: 65.64 % Average return on equity 5Years: 16.93 %

Last 5 year Analysis on  Sales , Operating Profit and Net Profit for 2 players by Anup Lamb –values in Cr from 2014-20

Aashi Ind Glass Ltd  Total
Sales 2,099 2,209 2,345 2,633 2,913 2,645 14,844
Oprating Profit 305 393 414 459 508 436 2,515
Net Profit 42 87 150 177 190 154 800
LA Opla Rg  Total
Sales 222 248 235 259 278 270 1,512
Oprating Profit 66 86 89 109 112 104 566
Net Profit 42 59 62 73 74 84 394
Total last 6 yrs Asahi La Opla Rg
Sales 14,844 1512
Oprating Profit 2,515 566
Net Profit 800 394
Net Profit % over OP 32 69.61
Net Profit % over Sales 5 26.05

Observations from above numbers , I leave for readers to make out and let us know in comments section


These are very niche players working in very niche sectors, have strong promoter holdings and very less debts. They have grown from a small players to credible brands in small cap category over years.

We might not see them on daily basis in terms of products but these are very much part of our life. India as economy is consumption economy with years to come these have a role to play.

My intention is to bring readers/investors attention to these less talked companies. Request everyone to do their own due diligence before making any investments. I hope at the end of this blog you know something new. Thanks

Anup Lamb

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Prateek Goel

Prateek Goel

Co-founder of Investeek, Prateek has been investing in the stock markets since 2006 and has beaten the NSE/BSE on a consistent basis. At the age of 24, he was also featured in India Today for his expert insight on gold trading.
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