The below article was published in the international publication, Fashion Network, Paris, dated October 12, 2018. Media Coverage Link – https://fr.fashionnetwork.com/news/Le-verrier-indien-Piramal-Glass-veut-s-imposer-en-Europe,1022615.html#.W8bSmmgza03
Original version in French…
Le verrier indien PGP Glass veut s’imposer en Europe
C’est en 2005 que PGP Glass s’intéresse de plus près au marché lucratif du flacon de luxe pour la parfumerie. Cette année-là, l’indien rachète le verrier américain Glass Group’s Cosmetic and Perfumery alors en difficulté. Cette opération lui permet d’acquérir le savoir-faire en matière de fabrication de flacons de fragrances et de l’importer en Inde où il compte deux usines, en plus de celle implantée au Sri Lanka et de son usine américaine. Depuis, PGP Glass a ouvert dans la ville normande d’Eu ses bureaux pour l’Europe, où sa division parfumerie réalise 34 % de son chiffre d’affaires.
PGP Glass, qui compte parmi ses clients les groupes Coty, LVMH ou encore Bogart, veut s’ancrer davantage en Europe, comme le souligne son directeur général : « Nous sommes leaders en Inde et en Asie, mais l’Europe reste le marché le plus intéressant en raison de la qualité des produits. Cependant, aujourd’hui, ce marché ne pense pas forcément à nous pour de nouveaux lancements car nous sommes trop loin. Nous travaillons donc sur des technologies comme la 3D de façon à être plus proches de nos clients ».
La société indienne veut également jouer la carte de la proximité géographique et recherche activement à acquérir une usine de verrerie ou de décoration en Europe de l’Est où les coûts de la main d’œuvre sont moindres. « C’est une industrie complexe avec des coûts et des capacités fixes qui sont donc très sensibles aux variations de la demande. Même les principaux acteurs du secteur ont cessé de se développer. La force de PGP Glass, c’est justement d’être plus flexible. Sur les deux années à venir, nous allons investir 70 millions de dollars (60,4 millions d’euros) », conclut-il.
By Sarah Ahssen
English translated version…
Indian glass maker PGP Glass wants to win in Europe
Nestled between the Normandy border and the Hauts-de-France, Glass Valley produces more than 70% of the world’s production of luxury bottles for perfumes, spirits and pharmaceuticals. It is in this very competitive market, largely occupied by European players, that the Indian glass maker PGP Glass has decided to make a name for itself. And it is in the city of Eu, in the heart of the Glass-Valley, that she has established her bases to carry out this business.
“Five or six European manufacturers share the market. These are family companies established for centuries as Pochet du Courval, Verrerie Brosse (the subsidiary of the Italian Zignago, ed) or Heinz Glas. Besides, we are a very young company, “says Vijay Shah, the managing director of PGP Glass. The Indian specialist in glass packaging design, production and decoration earns 40% of its $ 320 million (€ 276.3 million) in sales with its cosmetics and perfumes division, the rest being distributed between flasks for spirits and food and those for pharmaceuticals.
Owned by the Indian giant Piramal Enterprises, a family-owned company valued at $ 20 billion (17.3 billion euros) whose activities range from the manufacture of drugs to real estate, PGP Glass has entered the market Glass packaging dedicated to the pharmaceutical industry in 1994 before taking its first steps ten years later on the beauty with nail polish bottles. “Today, we are the world leader in this field, we export our veneer bottles to 40 countries and we manufacture two billion units each year, almost half of the world market,” says Vijay Shah.
In 2005, PGP Glass took a closer look at the lucrative luxury bottle market for perfumery. That year, the Indian bought the glassmaker Glass Group’s Cosmetic and Perfumery then in difficulty. This operation allows him to acquire the know-how in the manufacture of perfume bottles and to import it in India where he has two factories, in addition to that located in Sri Lanka and its American factory. Since then, PGP Glass opened its European offices in the Normandy city of Eu, where its perfume division generates 34% of its turnover.
PGP Glass, whose clients include the Coty, LVMH and Bogart groups, wants to become more anchored in Europe, as its managing director says: “We are leaders in India and Asia, but Europe remains the market the more interesting because of the quality of the products. However, today, this market does not necessarily think of us for new launches because we are too far away. So we are working on technologies like 3D to be closer to our customers. ”
The Indian company also wants to play the map of geographical proximity and is actively seeking to acquire a glassware or decoration plant in Eastern Europe where labour costs are lower. “It’s a complex industry with fixed costs and capacities that are therefore very sensitive to variations in demand. Even the main players in the sector have stopped growing. The strength of PGP Glass is to be more flexible. Over the next two years, we will invest 70 million dollars (60.4 million euros), “he concludes.
By Sarah Ahssen