Saint Gobian India is planning to invest almost INR 8,000 crore in the upcoming 4 to 5 years to boost capital expenditure and simplify the process of future acquisitions. The company is a renowned supplier of high-quality glass, steel or aluminium windows, doors, facades and other constructional solutions. Saint Gobian’s CEO of Asia Pacific, B Santhanam made the above announcement.
The company recently acquired Rockwool India and Twiga, and is keen on pursuing inorganic growth opportunities in India. Saint-Gobain India, a subsidiary of the French multinational corporation, anticipates a mix-led growth of approximately 10% in volume from the Indian market, where a surge in demand is being observed.
Saint Gobian CEO of Asia Pacific and India region and Chairman, Santhanam, explained: “Saint-Gobain India is performing very well in India in terms of growth, profitability, expansion, sustainability, digital and people talent. All our businesses be it in building and construction or industrial solutions are performing well.”
“We are close to the annualised rate of INR 13,200 crore... Comparing FY24 to FY23 we will be 8-10 per cent more in terms of growth,” he added.
Santhanam further added that India is the third most profitable country in the Saint-Gobain global business. Most of the company's businesses are undertaking capacity expansion as it plans to invest around INR 8,000 crores over the next 4-5 years, with over 90% of the investment focused on capex. Saint-Gobain India is financing the investments through its internal accruals, as the company is debt-free and has sufficient internal funds to support its growth appetite.
Santhanam stated that the outlook for Saint-Gobain's business in India is favourable in the long term, as people are investing in better solutions that combine aesthetics, functionality, comfort, and sustainability. The company offers solutions for facades, partitions, ceilings, and bathrooms; ceramics for infrastructure industries like steel, cement, and aluminium; and glazing solutions for mobility. Saint-Gobain India's long-term growth can be two times the GDP growth rate, which is driven by a strong demand for its solutions across various categories.
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Moreover, the Modi government's strong push on infrastructure has led to rapid growth, driving demands for construction chemicals that offer sustainable solutions and reduce carbon footprints. Saint-Gobain India also exports advanced products to markets such as ASEAN, North Asia, Middle East, and Australia, New Zealand from India. Santhanam added that even if there has been a slowdown in the exports of goods from India, Saint-Gobain India's exports (goods and services) have remained steady at 15%. However, if the asymmetry in duties on glass with select ASEAN countries is removed, Saint-Gobain India can perform even better.
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