Bangladesh delivered CC growth of ~12% in FY25, led by new extensions. The business has steadily reduced its dependence on the Coconut Oil portfolio. The mediumterm outlook for Bangladesh remains strong. • Vietnam posted ~4% CC growth during the year, impacted by sluggishness in core categories. Others* • *Others includes MENA (Middle east & North Africa), South Africa and NCD (New Country Development) & Exports. MENA region posted ~36% CC growth, led by strong traction across markets. The Middle East and Egypt businesses grew 26% and 73%, respectively in CC terms, led by a well-rounded performance across portfolios and successful new product launches in both geographies. South Africa delivered a CC growth of ~19%, driven by strong performance in the Health Care and Hair Care segments. While the NCD & Export segment grew by ~16%.
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#SALES #GROWTH
Sales grew by ~12% YoY to ₹10,831 cr in FY25. Geographically, India business grew by ~14% YoY, aided by price interventions in core categories in response to a sharp rise in input costs, with an underlying volume growth of ~5%. While the international business was up by ~8% YoY in INR terms and ~14% in CC terms. The international business has navigated headwinds, including macroeconomic volatility and currency devaluation in select markets. While the Bangladesh and Vietnam businesses remained strong, the robust momentum in the MENA (Midde East and North Africa) and South Africa businesses has strengthened the revenue construct of the overall international business.
Sales grew by ~12% YoY to ₹10,831 cr in FY25. Geographically, India business grew by ~14% YoY, aided by price interventions in core categories in response to a sharp rise in input costs, with an underlying volume growth of ~5%. While the international business was up by ~8% YoY in INR terms and ~14% in CC terms. The international business has navigated headwinds, including macroeconomic volatility and currency devaluation in select markets. While the Bangladesh and Vietnam businesses remained strong, the robust momentum in the MENA (Midde East and North Africa) and South Africa businesses has strengthened the revenue construct of the overall international business.
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#EBITDA #GROWTH
In FY25, EBITDA grew by ~6% YoY to ₹2,139 cr, despite rising input prices. The growth was further supported by increase in gross profits. During the period, it witnessed a rise in employee benefit expenses and A&P spends (up by ~18% YoY). Major expenses for the company constituted cost of materials consumed ~42% (mainly constitutes raw materials and packing materials) and other expenses ~23% (majorly towards advertisement & marketing expense). Across different FMCG categories, the uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level.
In FY25, EBITDA grew by ~6% YoY to ₹2,139 cr, despite rising input prices. The growth was further supported by increase in gross profits. During the period, it witnessed a rise in employee benefit expenses and A&P spends (up by ~18% YoY). Major expenses for the company constituted cost of materials consumed ~42% (mainly constitutes raw materials and packing materials) and other expenses ~23% (majorly towards advertisement & marketing expense). Across different FMCG categories, the uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level.
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#EBITDA #MARGIN
On the raw material front, copra prices were up by ~48% YoY in FY25. Also, Rice Bran Oil (RBO) prices were firm sequentially and up by ~25% YoY in FY25. Crude oil derivatives remained rangebound during the period. In FY25, EBITDA margin contracted by ~124 bps YoY to 19.7%, led by a contraction in the gross margins, owing to the rising trend in input prices like copra and vegetable oil prices, partly offset by pricing interventions across key portfolio. EBIT margin, for the domestic business contracted by ~309 bps YoY to 15.6% (v/s 18.7% in FY24), while that of international business contracted by ~196 bps YoY to 24% (v/s 26% in FY24).
On the raw material front, copra prices were up by ~48% YoY in FY25. Also, Rice Bran Oil (RBO) prices were firm sequentially and up by ~25% YoY in FY25. Crude oil derivatives remained rangebound during the period. In FY25, EBITDA margin contracted by ~124 bps YoY to 19.7%, led by a contraction in the gross margins, owing to the rising trend in input prices like copra and vegetable oil prices, partly offset by pricing interventions across key portfolio. EBIT margin, for the domestic business contracted by ~309 bps YoY to 15.6% (v/s 18.7% in FY24), while that of international business contracted by ~196 bps YoY to 24% (v/s 26% in FY24).
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#ROCE
In FY25, ROCE for the company increased to 50.62%. Over the years, ROCE for the company has been on an upward trend. The company drove profitable operations and enjoyed a comfortable net cash surplus during the year which stood at ₹1,830 cr. The company is actively exploring opportunities to optimize borrowing costs and maximize yield on investments while maintaining conservative guardrails on safety, liquidity and returns
In FY25, ROCE for the company increased to 50.62%. Over the years, ROCE for the company has been on an upward trend. The company drove profitable operations and enjoyed a comfortable net cash surplus during the year which stood at ₹1,830 cr. The company is actively exploring opportunities to optimize borrowing costs and maximize yield on investments while maintaining conservative guardrails on safety, liquidity and returns
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#ROE
In FY25, ROE for the company witnessed an increase to 43.36%, owing to a rise in net profit. With sustained investments guided towards expanding and developing newer categories, the company is foraying into multiple offerings across its existing business portfolio, that will help in improving the profitability and maintaining strong return ratios of the company going ahead
In FY25, ROE for the company witnessed an increase to 43.36%, owing to a rise in net profit. With sustained investments guided towards expanding and developing newer categories, the company is foraying into multiple offerings across its existing business portfolio, that will help in improving the profitability and maintaining strong return ratios of the company going ahead
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#Company #POTENTIAL
FMCG sector - FMCG sector, in FY25, continued witnessing steady demand trends, supported by a gradual recovery in rural sentiment and stable urban consumptions. The uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. • Urban/Rural- While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level. • Rising Wellness - There is a growing awareness amongst people regarding their wellbeing. As people realize that good health needs proactive attention, they are rapidly growing closer to healthy eating habits. Organic, superfood-based, nutritious, natural products are gaining favour amongst the masses, no matter what the category. • Digitization • • Inflation- Increasing smartphone and internet penetration is helping people in rural areas easily access online shopping. It is increasingly becoming a priority for FMCG brands as customers interact with brands across multiple online and offline channels. Companies also get access to valuable data from these sources, including various social media platforms, web and mobile applications. Besides, it also allows FMCG brands to engage better with their customers and convert one-time buyers into repeat customers. E-commerce - Going forward, channel mix will shift dramatically in favour of E-commerce. The growth in the same have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitization for enabling smooth functioning of its supply and distribution channel.- FY25 witnessed a slowdown in consumption, led by impacted rural demand due to high food inflation and seasonality
FMCG sector - FMCG sector, in FY25, continued witnessing steady demand trends, supported by a gradual recovery in rural sentiment and stable urban consumptions. The uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. • Urban/Rural- While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level. • Rising Wellness - There is a growing awareness amongst people regarding their wellbeing. As people realize that good health needs proactive attention, they are rapidly growing closer to healthy eating habits. Organic, superfood-based, nutritious, natural products are gaining favour amongst the masses, no matter what the category. • Digitization • • Inflation- Increasing smartphone and internet penetration is helping people in rural areas easily access online shopping. It is increasingly becoming a priority for FMCG brands as customers interact with brands across multiple online and offline channels. Companies also get access to valuable data from these sources, including various social media platforms, web and mobile applications. Besides, it also allows FMCG brands to engage better with their customers and convert one-time buyers into repeat customers. E-commerce - Going forward, channel mix will shift dramatically in favour of E-commerce. The growth in the same have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitization for enabling smooth functioning of its supply and distribution channel.- FY25 witnessed a slowdown in consumption, led by impacted rural demand due to high food inflation and seasonality
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#COMPANY #OUTLOOK
• In the medium term, they aim to deliver double-digit revenue growth through consistent outperformance across categories and market share gains in the domestic core portfolios, accelerated growth in the Foods & Premium Personal Care and double-digit constant currency growth in the international business. • Copra prices has inched up in line with expectations and continued to exhibit an upward bias. RBO has been stable and is expected to be range bound in the near term. LLP and HDPE (High Density Polyethylene) hardened sequentially and may trend upwards, considering recent bullishness in crude oil prices. Gross margin is anticipated to grow owing to moderation in raw material prices and a favorable portfolio mix. • The operating margin is envisaged to inch up over the medium term, supported by leverage benefits and premiumization of the portfolios across both domestic and international markets. • The company expects gradual improvements in the core categories, on the back of moderating trends in retail and food inflation, followed by a healthy monsoon season. • Amongst channels, modern trade (MT) and e-commerce (including quick commerce), continued to gain traction, while general trade (GT) remained under pressure due to evolving and inter-channel conflicts and customer shifts. • The company expects gradual improving trends in VAHO on the back of ATL (above the line) investments, brand activations and gradually improving trends in rural consumption sentiment. • The company continued to maintain its aspiration of achieving double-digit EBITDA margin in the Digital-first portfolio by FY27.
• In the medium term, they aim to deliver double-digit revenue growth through consistent outperformance across categories and market share gains in the domestic core portfolios, accelerated growth in the Foods & Premium Personal Care and double-digit constant currency growth in the international business. • Copra prices has inched up in line with expectations and continued to exhibit an upward bias. RBO has been stable and is expected to be range bound in the near term. LLP and HDPE (High Density Polyethylene) hardened sequentially and may trend upwards, considering recent bullishness in crude oil prices. Gross margin is anticipated to grow owing to moderation in raw material prices and a favorable portfolio mix. • The operating margin is envisaged to inch up over the medium term, supported by leverage benefits and premiumization of the portfolios across both domestic and international markets. • The company expects gradual improvements in the core categories, on the back of moderating trends in retail and food inflation, followed by a healthy monsoon season. • Amongst channels, modern trade (MT) and e-commerce (including quick commerce), continued to gain traction, while general trade (GT) remained under pressure due to evolving and inter-channel conflicts and customer shifts. • The company expects gradual improving trends in VAHO on the back of ATL (above the line) investments, brand activations and gradually improving trends in rural consumption sentiment. • The company continued to maintain its aspiration of achieving double-digit EBITDA margin in the Digital-first portfolio by FY27.
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Asahi India Glass Limited Company Details Report
Asahi India Glass Limited is a prominent manufacturer of value-added glass products and has become an integrated glass solutions provider in India. Spanning the entire glass value chain, AIS is engaged in the production of automotive glass, float glass, glass processing, fabrication, and installation. AIS was established as a joint venture between the Labroo Family, AGC Inc., Japan and Maruti Suzuki India Limited, beginning operations in 1987. AIS entered the float glass segment after acquiring Float Glass India Limited with its manufacturing facility at Taloja (Maharashtra) in 2001. The company majorly caters to three business units which include: Automotive Glass, Architectural Glass and Consumer Glass. AIS auto glass products and solutions have attained 75% market share in the passenger car market segment and the product range encompasses laminated glass for car windshields, tempered glass for side windows, backlites, sunroofs and windshields, along with sub-assemblies and a wide array of value-added glass products. The company has ~3,700 stock keeping units under this segment. Its client base includes Maruti Suzuki India, Kia, Hyundai, Toyota, Mahindra & Mahindra, Toyota, Honda, Ashok Leyland, Daimler, Force Motors, Bajaj Auto, Volvo to name a few. It is a sunroof system supplier to Webasto, Aisin, and Golde Group. Additionally, the company also supplies auto glass in white goods segment i.e., refrigerator shelf glass and washing machine lid glass, etc. In the architectural glass industry, its offering include specialised value-added glass products which includes float glass, high performance coated glass, mirror, back painted glass, decorative glass, processed glass, and other value-added glass products. These offerings are designed for both exterior and interior use in modern architecture. In this category the company has a market share of ~16% and has 1,372 stockists across India. Through consumer glass segment, for B2C (business to consumer) segment, the company provides customised solutions in the automotive and architectural glass segments. It leverages its expertise in B2B (business to business) segments and product innovation to provide interface to its customers with in-depth consultancy services. It has presence across 65 cities in India and addresses over 101 dealerships & workshops. Within the automotive segment, OEMs account for over ~75% of AIS’ revenue, while the replacement market contributes ~25%. In this space, AIS plays a significant role through its network of distributors and dealers, and also operates the well-known Windshield Experts chain of standalone repair and replacement workshops. As on 31st March 2024, total installed capacity stood at 4.5 cr pieces for tempered glass, 1,280 TPD (tonne per day) float glass and 0.85 cr pieces for laminated glass.
Asahi India Glass Limited is a prominent manufacturer of value-added glass products and has become an integrated glass solutions provider in India. Spanning the entire glass value chain, AIS is engaged in the production of automotive glass, float glass, glass processing, fabrication, and installation. AIS was established as a joint venture between the Labroo Family, AGC Inc., Japan and Maruti Suzuki India Limited, beginning operations in 1987. AIS entered the float glass segment after acquiring Float Glass India Limited with its manufacturing facility at Taloja (Maharashtra) in 2001. The company majorly caters to three business units which include: Automotive Glass, Architectural Glass and Consumer Glass. AIS auto glass products and solutions have attained 75% market share in the passenger car market segment and the product range encompasses laminated glass for car windshields, tempered glass for side windows, backlites, sunroofs and windshields, along with sub-assemblies and a wide array of value-added glass products. The company has ~3,700 stock keeping units under this segment. Its client base includes Maruti Suzuki India, Kia, Hyundai, Toyota, Mahindra & Mahindra, Toyota, Honda, Ashok Leyland, Daimler, Force Motors, Bajaj Auto, Volvo to name a few. It is a sunroof system supplier to Webasto, Aisin, and Golde Group. Additionally, the company also supplies auto glass in white goods segment i.e., refrigerator shelf glass and washing machine lid glass, etc. In the architectural glass industry, its offering include specialised value-added glass products which includes float glass, high performance coated glass, mirror, back painted glass, decorative glass, processed glass, and other value-added glass products. These offerings are designed for both exterior and interior use in modern architecture. In this category the company has a market share of ~16% and has 1,372 stockists across India. Through consumer glass segment, for B2C (business to consumer) segment, the company provides customised solutions in the automotive and architectural glass segments. It leverages its expertise in B2B (business to business) segments and product innovation to provide interface to its customers with in-depth consultancy services. It has presence across 65 cities in India and addresses over 101 dealerships & workshops. Within the automotive segment, OEMs account for over ~75% of AIS’ revenue, while the replacement market contributes ~25%. In this space, AIS plays a significant role through its network of distributors and dealers, and also operates the well-known Windshield Experts chain of standalone repair and replacement workshops. As on 31st March 2024, total installed capacity stood at 4.5 cr pieces for tempered glass, 1,280 TPD (tonne per day) float glass and 0.85 cr pieces for laminated glass.
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#SALES #GROWTH
In FY25, the net sales increased by 5% YoY and stood at ₹4,594 cr. Automotive glass segment grew by 13% YoY to ₹3,011 cr led by steady demand from auto industry, followed by a decline in float glass segment at 13% YoY at ₹1,332 cr as demand for float glass, primarily used in residential and commercial real estate, typically follows a lag effec and others segment expanded from ₹350 cr to ₹766 cr for the year. In FY24, the net sales grew by 8.4% YoY to ₹4,357 cr driven by automotive glass segment, which grew by 21% YoY, while float glass category saw a decline of 12.6% YoY. The growth was majorly led by auto segment while the float glass segment observed a decline. In FY22 & FY23, the net sales observed significant rise as in the architectural glass segment, as it benefitted from the imposition of anti-dumping duty on imports of float glass from Malaysia from H2 FY21 onwards and rise in real estate & auto demand post Covid.
In FY25, the net sales increased by 5% YoY and stood at ₹4,594 cr. Automotive glass segment grew by 13% YoY to ₹3,011 cr led by steady demand from auto industry, followed by a decline in float glass segment at 13% YoY at ₹1,332 cr as demand for float glass, primarily used in residential and commercial real estate, typically follows a lag effec and others segment expanded from ₹350 cr to ₹766 cr for the year. In FY24, the net sales grew by 8.4% YoY to ₹4,357 cr driven by automotive glass segment, which grew by 21% YoY, while float glass category saw a decline of 12.6% YoY. The growth was majorly led by auto segment while the float glass segment observed a decline. In FY22 & FY23, the net sales observed significant rise as in the architectural glass segment, as it benefitted from the imposition of anti-dumping duty on imports of float glass from Malaysia from H2 FY21 onwards and rise in real estate & auto demand post Covid.
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#EBITDA #GROWTH
In FY25, EBITDA grew moderately by ~4% YoY to ₹766 cr. The expansion was led by better product mix of SUV cars and EV. Gross profit increased by 7% YoY. In FY24, the EBITDA was ₹738 cr and declined by 7.2% on account of rise in cost of raw materials and power & fuel cost. The glass industry is highly energy extensive industry with power and fuel costs constituting a significant portion (~15.9% of revenue in FY24) of the total cost. The key inputs for manufacturing automotive glass are auto-quality float glass and poly vinyl butyral (used for binding glass together). Soda ash, sand, limestone, dolomite, power and fuel are the key inputs for manufacturing float (architectural) glass. The rise from FY22 onwards was on account of rise in sales from auto & architectural segments.
In FY25, EBITDA grew moderately by ~4% YoY to ₹766 cr. The expansion was led by better product mix of SUV cars and EV. Gross profit increased by 7% YoY. In FY24, the EBITDA was ₹738 cr and declined by 7.2% on account of rise in cost of raw materials and power & fuel cost. The glass industry is highly energy extensive industry with power and fuel costs constituting a significant portion (~15.9% of revenue in FY24) of the total cost. The key inputs for manufacturing automotive glass are auto-quality float glass and poly vinyl butyral (used for binding glass together). Soda ash, sand, limestone, dolomite, power and fuel are the key inputs for manufacturing float (architectural) glass. The rise from FY22 onwards was on account of rise in sales from auto & architectural segments.
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#PAT #GROWTH
In FY25, net profit grew by 15% YoY to ₹365 cr. This was led by operating profit and higher other income. There was an exceptional gain of ₹32 cr from Q3 FY25, pertaining to gain on sale of non current investments. Tax rate for the year was 28.4% v/s 27% in FY24. In FY24, the net profit was ₹317 cr and declined by 8.1% YoY. A portion of the decline can be attributed to rise in finance cost and depreciation expenses.
In FY25, net profit grew by 15% YoY to ₹365 cr. This was led by operating profit and higher other income. There was an exceptional gain of ₹32 cr from Q3 FY25, pertaining to gain on sale of non current investments. Tax rate for the year was 28.4% v/s 27% in FY24. In FY24, the net profit was ₹317 cr and declined by 8.1% YoY. A portion of the decline can be attributed to rise in finance cost and depreciation expenses.
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#EBITDA #MARGIN
In FY25, the EBITDA margin stood at 16.7% and declined moderately by 26 bps YoY. EBIT margin from automotive glass segment, float glass and others was 12%, 15.1% and 3% respectively. In FY24, the EBITDA margin was 16.9%. Towards auto glass segment the EBIT margin was 11.8% in FY24 and for architectural glass it was 17.3%, with rising imports impacting the pricing power of domestic architectural glass suppliers and from 2022 onwards the same touched 31% on account of anti-dumping duty imposed on float glass and strong rise in sale of auto & architectural glass backed by pick up in auto & real estate demand.
In FY25, the EBITDA margin stood at 16.7% and declined moderately by 26 bps YoY. EBIT margin from automotive glass segment, float glass and others was 12%, 15.1% and 3% respectively. In FY24, the EBITDA margin was 16.9%. Towards auto glass segment the EBIT margin was 11.8% in FY24 and for architectural glass it was 17.3%, with rising imports impacting the pricing power of domestic architectural glass suppliers and from 2022 onwards the same touched 31% on account of anti-dumping duty imposed on float glass and strong rise in sale of auto & architectural glass backed by pick up in auto & real estate demand.
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#ROCE
In FY25, the ROCE is expected to decline owing to subdued PBIT growth. In FY24, the ROCE declined to 15.1%, on account of capacity expansion. It increased significantly post 2021, as there was an increase in sales & operating profit from architectural & auto segment and company has been undergoing expansion since then.
In FY25, the ROCE is expected to decline owing to subdued PBIT growth. In FY24, the ROCE declined to 15.1%, on account of capacity expansion. It increased significantly post 2021, as there was an increase in sales & operating profit from architectural & auto segment and company has been undergoing expansion since then.
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#COMPANY #POTENTIAL
• The Indian glass industry is set to witness substantial growth in the coming years, primarily propelled by the construction, automotive, and solar sectors. This growth will be further accentuated by the government's focus on infrastructure development, smart city projects, and sustainability initiatives. The burgeoning middle-class population and rise in consumer spending will drive the demand for home renovation, resulting in a higher adoption of glass products such as shelves, kitchen shutters, partitions, shower cubicles, and premium glass in the automotive sector. • Another notable advancement is electrochromic glass, enabling passengers to adjust the transparency of the glass according to their specific needs. Additionally, suspended particle device glass utilises electricity to seamlessly transition between dark and light shades, making it an ideal choice for sunroofs and similar applications. The industry's growing focus on fuel efficiency and reducing emissions has resulted in the increased production of lightweight and electric vehicles. This trend is expected to drive the demand for glass and value-added glass in the automotive industry in the coming years. • The glass industry in India presents significant growth opportunities. Increasing demand for glass products across diverse sectors, coupled with favorable government initiatives, particularly in construction, creates an encouraging business environment for manufacturers. Additionally, the implementation of the Goods and Services Tax (GST) has streamlined operations and reduced logistics costs, benefiting the industry as a whole. • As the Indian real estate market expands, demand for architectural glass shall grow, driven by increasing construction projects. • In terms of trends, the industry is witnessing a shift towards advanced glass products, such as low-emissivity (low-E) glass for energy-efficient buildings and automotive glass with advanced features like smart coatings and integration with sensors. This trend is driven by growing environmental concerns and the need for better thermal insulation and safety features.
• The Indian glass industry is set to witness substantial growth in the coming years, primarily propelled by the construction, automotive, and solar sectors. This growth will be further accentuated by the government's focus on infrastructure development, smart city projects, and sustainability initiatives. The burgeoning middle-class population and rise in consumer spending will drive the demand for home renovation, resulting in a higher adoption of glass products such as shelves, kitchen shutters, partitions, shower cubicles, and premium glass in the automotive sector. • Another notable advancement is electrochromic glass, enabling passengers to adjust the transparency of the glass according to their specific needs. Additionally, suspended particle device glass utilises electricity to seamlessly transition between dark and light shades, making it an ideal choice for sunroofs and similar applications. The industry's growing focus on fuel efficiency and reducing emissions has resulted in the increased production of lightweight and electric vehicles. This trend is expected to drive the demand for glass and value-added glass in the automotive industry in the coming years. • The glass industry in India presents significant growth opportunities. Increasing demand for glass products across diverse sectors, coupled with favorable government initiatives, particularly in construction, creates an encouraging business environment for manufacturers. Additionally, the implementation of the Goods and Services Tax (GST) has streamlined operations and reduced logistics costs, benefiting the industry as a whole. • As the Indian real estate market expands, demand for architectural glass shall grow, driven by increasing construction projects. • In terms of trends, the industry is witnessing a shift towards advanced glass products, such as low-emissivity (low-E) glass for energy-efficient buildings and automotive glass with advanced features like smart coatings and integration with sensors. This trend is driven by growing environmental concerns and the need for better thermal insulation and safety features.
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