Saint-Gobain’s ‘glassy’ act of using dump as raw material

Since then, it has been making strategic investments in a phased manner and consolidating its presence in the country. It has also invested on R&D activities that have resulted in innovative business outcomes. One such recent attempt has helped Saint-Gobain transform loads of waste sand dumps into usable raw material, that is vital for manufacturing top-grade glass.

B Santhanam, President and MD, Flat Glass – South Asia, Malaysia and Egypt says “over the last two years, we piloted large-scale process trials using the sand dumps procured from the Neyveli Lignite Corporation (NLC). Deploying unique process technologies, the beneficiation plant could provide good quality raw material that is a crucial raw material for high-quality flat glass. The sand processing plant goes through a multi-stage environment-friendly process that makes it possible to come out with such a component (40 per cent glass grade sand).” 

This is a strategic decision for SaintGobain, which is keen on having a longterm arrangement so that it has access to the raw material on a sustainable basis. “We are ready with internal approvals from our side. The next stage is to have a tripartite agreement between NLC, the state government and us as the innovation sets the context for TN emerging as a raw material provider for the sunrise industry,” he says, adding a substantial investment has gone into this exercise. 

Saint-Gobain has consciously been promoting environmentally sustainable process, which includes rain-water-har vesting.  Far from being a commodity, it has become a brand that has acquired an identity reflecting its importance in various areas (architectural, solar, abrasives, ceramics) but especially in the automotive and real estate sectors of the economy. “We are right in the middle of it (the twin sectors or auto and housing) and we have managed the demo (as he refers to the note ban) quite well,” is his response on the impact of last year’s November 8 demonetisation. 

“Our production was as per schedule. Our sales were nearly normal,” Santhanam said, adding “we do not deliver to order but to stock.”  Sales during the November and December months had not deteriorated but to get a clear picture, he was waiting for the January to March  period sales figures to unfold. 

Saint-Gobain would be close to the Rs 6,000-crore mark for the calendar year ending December 2016. As on December 2015, the company had posted a turnover  of Rs 5,400 crore. The commissioning of its plant, announced in August 2015, is on schedule. “Our third float plant is under construction. Our expansions in Bhiwadi (Rajasthan), Jhagadia (Gujarat) and Sriperumbadur (TN) are in line with market needs,” he said. 

“As a group, we have grown by 12 per cent and our bottom-line has significantly improved owing to prudent cost control measures and lower commodity prices. Last year has been a positive year for the group, as a whole,” Santhanam said, adding the company was focusing more on digital marketing campaigns for branding purposes. 

With 30 per cent revenue contributions coming equally from north, south and west of India, Saint-Gobain is investing more to increase exports to tap the neighbouring markets of Bangladesh, Sri Lanka, Malaysia and the Middle East and Australia. “Our fundamental view is to position India as a manufacturing hub, especially considering our expertise in innovation. We are also building new capacities as the second quarter emphasis is for exports primarily, which is currently in the 15-20 per cent range,” he said. 

Saint-Gobain, which has increased capacity from 60 million sqft to 145 million sqft, accounts over 80 per cent of the country’s flat glass exports, he said, adding the business decisions were “largely predicated” on the need to expand given the scope for business when the green building movement is speeding up.