Henkel To Invest Rs 216 Cr To Set Up India's Largest Adhesives Plant
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Henkel Adhesive Technologies India, the Indian arm of German chemicals-to-beauty care group Henkel AG and Co., said on Tuesday (9 June) that it plans to set up India's largest adhesives manufacturing plant in Kurkumbh near Pune with a total investment of Euro 30 million (Rs 216 crore). The company, one of the top solution providers of adhesives, sealants and functional coatings, said the new plant is expected to start production by early 2017 and will cater to the various end user segments such as automotive, metal and industrial sectors.
“The new factory at Kurkumbh is a very important milestone of Henkel’s journey in India and it will enable the company to localise its product portfolio and reduce imports while bringing the best global technology to India," said Jeremy Hunter, president, Henkel group India.
"Considering the proximity of the plant to our local customers, it will also help us to work closely with them in developing solutions in this market, which is one of the biggest emerging markets for the group,' he added.
The Kurkumbh plant of Henkel will be built in a phased manner. In the first phase, this multi-technology plant will have an annual production capacity of about 80,000 tonnes and will produce adhesives and surface treatment products.
Henkel India, which is headquartered in Mumbai, currently operates about nine plants in India for various products including adhesives, laundry and surface treatment solutions. The company, which is a market leader in some of its industry products segment, has about 40% share in its domestic market in these products segment.
The new investment will further support Henkel’s global strategy to increase sales and business growth in emerging markets, said Hunter in a media meet in Mumbai on Tuesday.
Henkel's new plant in India is also part of the German group's global strategy to strengthen the presence in emerging markets with focused investments. With this the company will expand its existing category positions and accelerate growth in countries where it already has a strong presence. Henkel, which claims that it grew 10 to 15 per cent in the India in the last several years, aims to continue achieving above-average growth in these markets and to generate net sales of Euro 10 billion from these markets by the end of 2016.
Maharshtra chief minister Devendra Fadnavis will lay the foundation of Henkel's new plant in Kurkumbh during a ground breaking ceremony on Thursday.