Hindustan National Glass Official Says Industry Withstood Energy Crisis, but Faces Persistent Cost and Gas Supply Issues

West Asia Conflict Sends Ripples Through India's Glass Manufacturing Sector

The ongoing West Asia conflict has caused significant disruptions in India's glass manufacturing sector, with Hindustan National Glass (HNG) facing a severe energy crunch due to its 24x7 furnace operations and heavy reliance on gas and furnace oil. As India's only container glass company with a geographically spread footprint across the North, South, and East, HNG supplies glass to pharmaceuticals, alcohol beverages, and food and beverage firms, making it a critical link in the packaging value chain.

Glass manufacturing cannot afford even a minute of downtime, as the molten glass inside the furnace will cool down, expand, and can result in a sudden explosion if the furnace is shut. 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 HNG. The situation was especially difficult as HNG had just taken over the company from insolvency in September 2025.

HNG Chief Strategy Officer Suraj Mehta highlighted the challenges faced by the company, stating that the disruption in gas supplies forced the company 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.

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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.

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.

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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.