Glass Industry Survives Energy Shock, But Costs and Gas Supply Still a Concern

Unlike PET or aluminium packaging, glass manufacturing cannot afford even a minute of downtime.

"The molten glass inside the furnace will cool down, expand and can result in a sudden explosion if the furnace is shut," Mehta said in an interview with ANI.

With most plants running on natural gas and low sulphur heavy stock (LSHS) furnace oil, the disruption in LNG and LPG supplies during the peak of the crisis created an acute challenge for Hindusthan National Glass, India's only container glass company with a geographically spread footprint across the North, South and East.

Mehta said the situation was especially difficult as HNG had just taken over the company from insolvency in September 2025. The company supplies glass to pharmaceuticals, alcohol beverages, and food and beverage firms, making it a critical link in the packaging value chain. "We are part of the basics of packaging for the food and pharma industry, so any disruption impacts the larger ecosystem," he said.

At the height of the crisis, the company had to contemplate shutting furnaces if steady gas supply was not secured. While HNG managed to avoid a complete shutdown, it had to lower production capacity and switch fuels at a higher cost. In its Badli plant, reduced gas allocation forced a shift to furnace oil, which Mehta described as a "huge cost disadvantage to the country but we had no choice." In Conditory, where limited pipeline infrastructure meant dependence on LPG, supplies were cut to as low as 10% at one point, forcing the company to switch to propane.

The situation has since stabilised but remains far from normal. Mehta said natural gas supply has improved in plants like Badli and Rishikesh due to government intervention, particularly through the Ministry of Petroleum and Natural Gas, following representations made by the industry. However, LPG and LNG disruptions continue to pose challenges.

The energy shock has also driven up costs sharply. Mehta said energy prices rose by nearly 67% at the peak compared to normal levels, while soda ash -- a key raw material where India is import-dependent -- also saw volatile pricing due to the crisis. This has translated into a 15-20% increase in glass bottle prices in some segments. However, HNG has absorbed a significant portion of the burden. "We took a conscious call not to pass 100% of the raw material and energy cost increase to our customers... we worked out our math and passed the minimum impact," Mehta said, noting that demand is currently strong with the soft drink season underway.

Looking ahead, Mehta cautioned that the West Asia situation remains unpredictable. "Every day it is changing. I still feel we are far away from a 100% normalised situation," he said. His priority now is keeping operations afloat rather than profitability. He urged the government to lower industrial energy prices once the situation stabilises and to accelerate the expansion of piped natural gas infrastructure to prevent abrupt supply stoppages in the future.

For HNG, the immediate focus is on survival and operational stability. The company's recent acquisition post-insolvency has coincided with one of the toughest periods for the industry, but Mehta said proactive government steps and internal fuel-switching measures have helped it navigate the crisis without shutting down furnaces.

- ANI