Glass Industry Struggles Amid West Asia Conflict's Energy Shock
Hindusthan National Glass grapples with severe energy supply disruptions due to the West Asia conflict. With its furnaces requiring constant operation, HNG faces soaring energy costs, compounded by fluctuations in raw material prices. Despite these challenges, proactive strategies and government intervention helped avert a complete shutdown.
- Country:
- India
The West Asia conflict has thrust India's glass manufacturing sector, particularly Hindusthan National Glass (HNG), into crisis. HNG's Chief Strategy Officer, Suraj Mehta, highlights the severe energy crunch faced by their 24x7 furnace operations, heavily dependent on gas and furnace oil, posing a critical threat of shutdowns.
Mehta underscores that an extended shutdown would lead to cooling and expansion of molten glass, risking explosions. The conflict disrupted LNG and LPG supplies, forcing HNG, the sole container glass producer with operations spread nationwide, to consider halting production due to unreliable gas supply.
HNG navigated the crisis by lowering production, switching fuels despite cost hikes, and absorbing most of the price increases. Government efforts have somewhat stabilized the situation, yet ongoing disruptions in LPG and LNG present costlier operations. Mehta warns of the unpredictable future, urging governmental infrastructure expansion to ensure stable supply.
(With inputs from agencies.)
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