French multinational company Saint-Gobain said it will continue its planned investment of more than ₹2,500 crores in greenfield and brownfield expansion in India in two years. The company is also looking to invest in start-ups and strategically fit acquisitions to capitalize on the growth opportunities.
“We are ahead of the curve on the investment front,” said Santhanam B., chairman, and managing director, Saint-Gobain India Pvt. Ltd. “Based on the long-range plan, as a group, we will be completing investments of ₹2,500 crores in FY22 and FY23. We are creating larger facilities, looking at potential acquisitions, investments in start-ups, accelerating spends on digital transformation, and increasing R&D spend.”
The plan includes two investments of ₹500 crores each in capacity expansion and an investment of ₹1,000 crore in a greenfield plant to manufacture building materials for which the location is yet to be finalized. He said the company had cash of more than ₹2,000 crores in its balance sheet, which would be used for CAPEX. The investments in start-ups and inorganic growth would be over and above the committed investment.
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“This second covid wave might push the recovery behind by six months, but we are not deviating from our long-term plans for India in terms of investment or idea,” Mr. Santhanam said, adding that the long-term prospects for business were robust.
“We believe that the long-term story of India both from the point of an economy growing as well as a contribution for exports of advanced manufacturing products, it is ahead of the curve of IT and digital transformation and can play a global role,” he added.
Saint-Gobain India which represents almost all manufacturing ecosystems, be it steel, aluminum, fabrication, infrastructure, auto OEM and components, building, and construction had reported improved performance of 14% growth on top line and growth in profits in the nine months starting July 2020 to March 2021 as it reduced costs, improved manufacturing processes, introduced a new range of products and solutions, and focused on digitalization, he said.
