MOSCOW (MRC) -- Germany-based Henkel has unveiled plans to build an adhesives plant at Kurkumbh, near Pune, in the Indian state of Maharashtra, with an investment of EUR30m, said Chemicals-technology.
With production planned to start by early 2017, the facility will be constructed in phases and will serve automotive, metal and industrial segments. It will be the tenth plant for Henkel in India. The first phase will have an operational area of around 20,000m, and is expected to produce 80,000t of adhesives and surface treatment products annually.
"This plant will enable us to localise our product portfolio and reduce imports, while bringing the best global technology to India." Henkel Group India president Jeremy Hunter said: "This plant will enable us to localise our product portfolio and reduce imports, while bringing the best global technology to India.
"Considering the proximity of the plant to our customers, it will also help us to work closely with them in developing solutions. We are aiming to win a greater market share in India, which is one of the biggest emerging markets for us."
The project is in line with the company's plan to strengthen its presence in the emerging markets. With this investment, Henkel aims to obtain a 40% share in the adhesives segment in India.
The Kurkumbh facility will be designed in compliance with LEED standards set by the Indian Green Building Council (IGBC), and will implement the highest safety, health and environment standards.
Business Standard cited Hunter as saying that the company intends to double its revenue in India in the next five years.
By the end of 2016, Henkel expects to record net sales of EUR10bn in markets where it already has strong presence.
As MRC informed earlier, in April 2015, Henkel said it plans to acquire Novamelt, a privately owned company based at Wehr in southern Germany, to further enhance its competence in the area of hotmelt adhesives
Henkel operates in three business units, including laundry and home care, beauty care and adhesive technologies.
MRC