Hindusthan National Glass & Industries Limited
strengthens manufacturing operations with legal IT
Overview
Company: Hindusthan
National Glass & Industries
Limited (HNG)
Industry: Glass containers
Country: India
Link: www.hngil.com
Company Profile:
HNG is India’s largest glass
packaging manufacturer with
55% market share and clients
in 23 countries. The firm
produces more than 2,800
tons of glass daily and uses an
extensive range of licensed IT
solutions.
Business Leader Profile:
Bharat Somany is a director at
HNG and oversees the
implementation of IT
solutions to satisfy business
needs.
Importance of Legalization:
HNG attributes its operational
efficiency and ability to scale
globally to the use of licensed
software. Technical benefits
and pitfalls associated with
stealing software were cited as
the primary reasons for
choosing to be licensed.
Commissioned by Microsoft
“If you don’t actually buy the software, you have
a black box – you can’t get any support on it and
you cannot really build it up to be a solution
which you would benefit from.”
Bharat Somany, Hindusthan National Glass & Industries, Director
While software piracy is prevalent throughout Indian
businesses, Hindusthan National Glass & Industries
Limited (HNG) is a manufacturer that maintains a strong
licensing position. HNG’s use of information technology
(IT) has established the company as a market share leader
and set it apart from the general practices of the industry.
In this case study, we explore the company’s perceptions
and attitudes toward IT and the value it gains from
utilizing licensed software.
IT landscape in India
The continuing prevalence of piracy in India has created a
competitive imbalance within the local economy. A Microsoft
commissioned study by Keystone Strategy, estimates that Indian
manufacturers playing by the rules (those with software compliance
rates above the national average) experience $505 million in
competitive disadvantage every year because of IT theft.
Bharat Somany, a director at Hindusthan National Glass &
Industries Limited, spoke to Keystone about how the advantages
of legal software guided HNG’s licensing position. He described
the piracy problem in India as “unbelievable.”
“To describe the level of
Piracy in India, rampant is
also an understatement – I
don’t have a word for it
anymore – it is
unbelievable.
Software encourages the
efficiency of the whole
operation, not just the
production process. Things
are much clearer when we
have access to information
at the right place at the
right time.
Transparency is something
that starts vanishing pretty
quickly when you [pirate
software]; there is no
accountability…this
problem just continues to
amplify – and then you’re
in a mess before you know
how to fix it.
We can’t focus on our core
business until we have a
good IT support ecosystem
in place. If we don’t buy
software, software
companies can’t make or
maintain good software. It’s
a chicken and egg
paradox.”
Bharat Somany,
Director,
HNG
IT drives HNG’s
operational efficiency
Mr. Somany described how
information technology
promotes HNG’s operational
efficiency – a major concern in
manufacturing. “Software
encourages the efficiency of the
whole operation, not just the
production process. Things are
much clearer when we have
access to information at the
right place at the right time.”
HNG’s IT infrastructure also
helped the company during
their recent acquisition of
Agenda Glas, a manufacturer
based out of Germany. “If you
have a well-defined
infrastructure and proper IT in
place, [international expansion]
is much easier. Otherwise it is
much harder to assimilate and
integrate what you have bought
into your business,” added Mr.
Somany.
Benefits of licensed IT
HNG’s commitment to
supporting IP laws and fair
competition is another factor
behind its use of licensed IT;
the firm’s licensing position is
core to HNG’s ethical stance.
Mr. Somany expounded on the
ethics of licensing, remarking,
“I do like to have a good
night’s sleep – which I
wouldn’t be able to have if I
was stealing something.” He
recognized that piracy can lead
to further ethical
complications: “transparency is
something that starts vanishing
pretty quickly…and then you’re
in a mess before you know how
to fix it.”
While highlighting the broad
technical benefits of buying
licensed software, Mr. Somany
explained that vendor support
gives him assurance that the
software he has in place will
keep operations running
optimally. “If you don’t actually
buy the software, you have a
black box – you can’t get
support on it and you cannot
really build it up to be a
solution which you would
benefit from.” He also points
out another fundamental
problem created by piracy –
“We can’t focus on our core
business until we have a good
IT support ecosystem in place.
If we don’t buy software,
software companies can’t make
or maintain good software. It’s
a chicken and egg paradox.”
Looking forward
IT has played an important role
in HNG’s growth and will
continue to serve as a key
differentiator. As the company
expands internationally, Mr.
Somany is confident that the
credibility from being legal and
the benefits of bundled IT
support will allow the company
to efficiently assimilate new
assets and penetrate new
markets.