SCHOTT increases sales in India and plans record investments

Schott's ongoing expansion in India

SCHOTT expects to see high growth rates in the field of diagnostics Photo: SCHOTT

SCHOTT AG, leading international specialty glass and technical ceramic materials manufacturer, has continued on its growth course in the fiscal year 2018 – 19 (1 October 2018 to 30 September 2019). Its key financial figures developed positively or remained at a solid level from the previous year.

image003 1

SCHOTT is one of the world‘s leading suppliers of pharmaceutical packaging. The company produces more than 11 billion pharmaceutical packaging units annually. Photo: SCHOTT

“We are pleased with the past fiscal year. We were able to meet our forecasts from last year and continued the positive business development of previous years despite the difficult global economic situation,” emphasized Dr Frank Heinricht, chairman of the Board of Management, at the Annual Results Press Conference.

According to the press statement, the international technology group managed to increase its sales by 5.1% to around EUR 2.2 billion (approximately Rs 1.5 trillion). The operating result (EBIT), which now stands at EUR 275 million (approximately Rs 2000 crore), also improved at a consistent rate, resulting in a consolidated net profit of EUR 206 million (approximately Rs 1500 crore). Business with special glass tubing for pharmaceutical packaging and the ampoules, vials, syringes, and cartridges produced from it, contributed substantially to the successful year.

Investments significantly higher, India and China among top markets for SCHOTT 

Investments in property, plant, and equipment amounted to EUR 257 million (approximately Rs 2000 crore) in the fiscal year, an increase of 38% over the previous year. Internationally, the largest investments in the fiscal year went to sites in India and China. More than EUR 21 million (approximately Rs 165 crores) was invested into a new tank facility at the Gujarat manufacturing plant, which supplies the FIOLAX glass tubing for pharmaceutic packaging.

At the presentation of the annual results, Dr Jens Schulte, chief financial officer pointed out that the equity ratio had remained at a solid level of 32%. “The company is thus in a strong financial position and has sufficient scope to achieve organic growth as well as make acquisitions,” he noted. The global number of employees rose to 16,200.

Strong growth in India

Record investments in India are also a result of exceedingly positive sales in the Asian market. India alone saw sales of EUR 49.5 million (approximately Rs 388.6 crores) – an increase of 18%. Key growth drivers for India were SCHOTT’s Tubing, Pharma-Packaging, and Flat Glass for Cooking.

Sharing his views on the growth of the tubing and pharma packaging segment, Georg Sparschuh, president of SCHOTT Glass India, shared, “With our Indian growth activities, we aim to strengthen further the local industry and the government’s goal of making India a global pharmaceutical hub. We have committed to invest about EUR 51 million (approximately Rs 400 crores) in our Gujarat manufacturing plant from 2018 till this year, to further cater to the expanding domestic and Asian markets.”

In addition, SCHOTT also entered the Indian smartphone market last year. Its premium cover glass Xensation Up was introduced in the country as part of the new range of Vivo premium smartphones.

Special protection: The premium cover glass Xensation Up. reliably protects mobile phones from the hazards of everyday life. Shown here in the V17 Pro smartphone from the Chinese technology company Vivo. Photo Vivo

Outlook for the fiscal year 2019-2020 – Key focus on the expansion of capacities in India, the setting of the course towards climate neutrality

After getting off to a good start in the first three months of its new fiscal year, SCHOTT expects sales to increase by between 3 to 6% for the year as a whole. The technology group expects impetus to come, among other areas, from the demand for specialty glass for pharmaceutical packaging and ultra-thin glass for the foldable mobile devices of the future.

In fiscal year 2019 – 2020, SCHOTT plans to invest EUR 320 million (approximately Rs 2200 crore), the highest amount in the company’s history. The main international focus will remain on capacity expansions in the pharmaceutical packaging business in India and China.

To achieve this, the expansion of production capacity in the existing India plant aims to further strengthen its output by mid-2020. SCHOTT has committed additional investments of EUR 28 million (approximately Rs 200 crore) for another tank facility, which will be operational this year. With the new production facility, the plant’s capacity will be doubled, allowing the group to produce its highly specialized FIOLAX tubing material for both domestic and export demands.

At the same time, SCHOTT intends to intensify its efforts to protect the environment and the climate. “With a view towards responsible and sustainable further development, we have set ourselves a clear goal. We want to make SCHOTT a climate-neutral company. During this fiscal year, we will set the course for this and consistently take the appropriate measures,” said Dr Heinricht, chairman of the Board of Management.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Packaging South Asia’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

Subscribe Now


Please enter your comment!
Please enter your name here