It Is Estimated That The Russian Glass Industry Will Cross US$ 10 Billion Revenues by 2013

The Russian glass manufacturers remained untouched by the global economic slowdown and the current Euro crisis because of increasing internal demand for glass. The macro scenario of the industry looks bright. The growth of the Russian glass industry has been above expectations both in terms of value and volume in the past five years. The Russian glass market has performed far better in comparison to the global glass market during the same period on the sidelines of rapid real estate development, increasing sales of alcoholic beverages, and increasing demand of technical glass from manufacturing sector. According to a recently published report by TechSci Research, ‘Russia Glass Market Forecast & Opportunities, 2017’ the Russian glass market is all set to grow enormously, taking into consideration challenges and threat which the industry will face in the coming years. It is estimated that the Russian glass industry will cross US$ 10 Billion (RUB 300 Billion) revenues by 2013 due to increasing domestic demand. The market value and market volume of the industry are both estimated to increase constantly, but the profit margins will feel the heat because of high prices of raw materials and tough competition from substitutes. The micro scenario of the industry is quite different from the macro scenario where a majority of companies which are planning expansion within one or two years should look for ways to decrease the expansion cost. Glass manufacturers will have to implement strategies which will help them in decreasing the cost of production. In addition to this glass manufacturers will have to come up with strategies so as to increase the demand for glass at the bottom (retail) level in order to decrease competition from PET packaging. “Russia is the world’s third largest producer of soda ash; Which is prime cost component in manufacturing of glass, the Russia glass industry can leverage the opportunity by M&A in the raw material front. Backward integration will help glass manufacturers in decreasing the manufacturing cost and increasing their profit margins. Efficient raw material procurement and backward integration will play vital role in the coming years for the Russian glass industry” says Karan Chechi, Research Director at TechSci Research. The major players operating in Russian glass industry are AGC Bor Glassworks JSC, Guardian Steklo Ryazan, Salavatsteklo JSC, Star Glass, Owen Corning, Schott AG and RASKO. AGC Bor Glassworks is currently leading the Russian glass industry in terms of volume sales and is forecasted to continue its dominance till 2017. However, the second most powerful player Salvesteklo is expected to witness a huge downfall in its volume sales due to which it will be replaced by Pilkinton. “Russia Glass Market Forecast & Opportunities, 2017” has evaluated the future growth potential of global and Russian glass market and provides statistics and information on market structure. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers and key challenges faced by the manufacturers in Russian glass market. Source: GlassInChina