German building materials major Knauf plans to invest 350 million euros (nearly Rs 3,720 crore) in India and build four new plants, its Global General Partner Murat Akyildiz told NDTV.
"We already have two plants in India. Now, our plan is to build four more plants in India, and we want to invest another 350 million euros," Akyildiz said in an interaction with NDTV.
The company has discussed its first new plant project with Union Commerce Minister Piyush Goyal, Akyildiz said, adding that Knauf had received assurances of support. "We are bullish. We have strong trust in the country and the government, and we are ready to invest," he said.
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Knauf, a German manufacturer of gypsum-based plasterboards and modern insulation systems, operates in more than 90 countries. Its expansion plans signal the company's intention to deepen its manufacturing presence in India rather than rely on imports to serve the market.
Why Knauf Is Betting On India
Explaining the rationale behind the proposed investment, Akyildiz pointed to India's economic growth, policy stability and the government's efforts to attract investment. "India always had the potential. I mean, the population was always there, the 1.4 billion. But what's here, at least for more than a decade now, is the stability," he said.
He added that India's growing openness to business and investment had strengthened the country's appeal to global companies.
According to Akyildiz, the government's focus on attracting capital can create jobs and generate more economic value within India. This is also central to Knauf's expansion strategy. "We don't want to import these things. We want to produce in India with Indian hands and make sure we're creating value in the country," he said.
The company wants to follow the government's Make in India and Vocal for Local initiatives by manufacturing products domestically and building local production capacity. "We want to build in India, make in India. Vocal for Local. That's what we follow," Akyildiz said.
Knauf Sees Investment Opportunities In India
Akyildiz said the company sees opportunities in India and has confidence in the country's economic potential. He also pointed to interest among international businesses in trading with and investing in India.
His comments came after the Berlin Global Dialogue, where he said he had the opportunity to hear from Indian government representatives about the country's ambitions and economic trajectory. He described India as a country that had become more confident and was seeking to expand its economic capabilities.
For Knauf, the proposed investment is not just about accessing a large consumer market. The company also wants to manufacture locally, create employment and retain more value within the Indian economy.
The planned addition of four plants would expand its existing manufacturing footprint in the country. However, Akyildiz did not disclose a timeline for the proposed investment or the commissioning of the new facilities.
The announcement comes as India continues to position itself as a manufacturing destination for international companies seeking opportunities beyond exports and imports.