Saint-Gobain intends to invest nearly 1 billion in India over the next five years as part of a larger strategy to shift its growth focus from Western Europe to emerging markets, according to Benoit Bazin, the global chief executive of the French building materials company. “When considering the next decade, I believe it will be the decade of India,” Bazin stated in an interview.
“The primary factor for growth in building materials and sustainable construction solutions is population growth. Therefore, India, with its population of 1.4-1.5 billion and an annual increase of 14-15 million, is extremely significant, especially with the expanding middle class and urbanization.”
The manufacturer of glass, gypsum boards, and construction chemicals noted that India is receiving more than double the group’s average capital allocation in relation to sales, highlighting the country’s increasing strategic importance within the Paris-based company.
Bazin further mentioned that India could potentially surpass France as one of Saint-Gobain’s largest profit contributors over the next decade. Having operated in India for over forty years, Saint-Gobain aims to achieve a threefold increase in its business in India over the next ten years, building on what is already its third-largest profit pool globally, following the US and France.
The company is broadening its presence across various sectors, including airports, metros, tunnels, railways, hospitals, and data centers, while establishing itself as a provider of energy-efficient and low-carbon building materials. Saint-Gobain, which generates nearly 2 billion in annual sales in India, plans to utilize the new investments for establishing new factories, enhancing research and development, improving digital capabilities, and making acquisitions related to sustainable construction materials.
The company has already invested 600 million in India over the past five years. “We double our size in India every five years, and our objective is to triple our size in the next decade,” Bazin remarked, emphasizing that this growth will be fueled by India’s rapid urbanization, population growth, and infrastructure development.
The Oragadam facility located near Chennai is being transformed into what the company claims will be Saint-Gobain’s largest industrial site worldwide, consolidating various product lines within a single campus.
According to the company, its operations in India have consistently surpassed the overall construction market, achieving growth that exceeds industry averages by more than four percentage points over the last four years. Sreedhar N, the chief executive for Asia-Pacific and India at Saint-Gobain, stated that the company’s extensive range of products provides it with a distinct advantage in India’s fragmented construction sector. “We are the sole entity in India that offers the comprehensive solutions required for any construction project,” he remarked.
The company is already involved in prominent projects, including the Pune Metro and the high-speed rail link between Mumbai and Ahmedabad, as well as an upcoming initiative with the Bangalore airport.
