Schott Glass India (SGI), a leading supplier of glass tubings in India, is all set to increase the prices of their tubings by 8 per cent from next month. The glass tubings, which is used in making vials and ampoules for injectables in the pharmaceutical industry, is currently manufactured mainly by four units in the country including SGI. In India there are only two players in the organised sector.

It is the fourth time SGI is increasing the prices on the tubing after the company took over Bharat Glass in 1998. Currently SGI is the largest tubing manufacturer in India with a capacity of 20 tonnes per day and market share of 65 per cent. The SGI tubing prices were in the range of Rs 35 to Rs 38 per kg in 1998 and over a period of three years, the prices went up by almost 90 per cent to touch Rs. 58 to Rs 65 per kg with the proposed hike.

The last price hike affected by the company was in October 2000 with a 12 per cent rise in the existing price. The price fixed by the company is exclusive of 16 per cent excise duty and 4 per cent CST. The latest price increase will be on Neutral Glass Clear (NGC) and Neutral Glass Amber (NGA), both of the categories of SGI product manufactured at its Jambusar plant. With the current 8 per cent price hike, the SGI tubing will ultimately cost the user industry to the tune of Rs 70 per kg for NGC and Rs 79 per kg for NGA.

Earlier, SGI increased the prices in January 1999 by 8 per cent to Rs 45 and Rs 50 for NGC and NGA, then in April 2000, once more by 8 per cent taking it to Rs 48.6 and Rs 54 for both the varieties. Again in October 2000, it hiked the prices by 12 per cent to Rs 53.75 and Rs 60.48 for both NGC and NGA.

According to the latest circular issued by SGI to its vendors the prices of 4-6 mm NGC and NGA ampoule tubing's will shoot to Rs 75.5 and Rs 85 respectively. Ampoule tubing's of 6-9 mm of both the varieties will cost now Rs 69.5 and Rs 78.25 and 9-20 mm tubing's will go up to Rs 58 and Rs 65.25 while that of 20 -30 mm ampoule producing tubing's will escalate to Rs 66.75 and Rs 75 correspondingly.

In the case of tubing's used for producing vials, the price of 6-9 mm size will increase to Rs 66.75 and Rs 75 for NGC and NGA while that of 9-30 mm will go up to Rs 58 and Rs 65.25 for both the ranges while the rate of 30-35 mm tubing will shoot to Rs 66.75 and Rs 75.

Though the quality of SGI glass tubings are superior to the other products, the industry sources feel that the company should not have increased the prices at this point of time. Commenting on the price hike of SGI, Kairus Dadachanji, managing director, Kiasha Manufacturers, one of the leading vials and ampoules manufacturers said ``Schott India should not have increased their tubing prices since the industry is already in bad shape.'' He added that the prices today for vials and ampoules are the same as they were three years back, when Bharat supplied tubings at substantially lower rates.

``Schott has been increasing the price of their tubings at regular intervals and the latest price escalation comes with no surprise since there is no one to beat Schott quality of tubings in India, '' said another industry source.

According to Joseph Karaket, managing director of Tube Glass Containers Ltd,'' Of late it was brought to SGI's notice that the increase in price of its tubing's was against vendor's interest, since we are not getting a price rise from our customers for ampoules and vials made out of it.'' The prices per kg tubing's are already the highest in the country and if this continues then this will soon increase the perennial search for an alternative supply of sound quality tubing's to meet the country's requirements, he added.

According to industry sources there are Indian units all set to end the monopoly of SGI in providing quality tubings in next couple of months.