Henkel Adhesives to set up India’s largest adhesives plant near Pune

Henkel Adhesive Technologies India has announced an investment of about 30 million euros (approximately Rs 230 crore) to set up the country’s largest adhesives plant in Kurkumbh, 50km from Pune. The new plant is expected to start production by early 2017.

The groundbreaking ceremony of the plant is scheduled to be held on June 11, 2015, which will be presided over by Devendra Fadnavis, the chief minister of Maharashtra, along with Jeremy Hunter, president of Henkel Group India. The plant will cater to various end user segments including automotive, metal and industrial. Henkel Adhesive Technologies India already caters to Maruti Suzuki India and Mahindra & Mahindra among Indian vehicle OEMs.

Commenting on the company’s plans, Jeremy Hunter said, “The Kurkumbh plant is a very important milestone of Henkel’s journey in India. The plant will enable us to localise our product portfolio and reduce imports while bringing the best global technologies 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 Kurkumbh plant, which will be Henkel’s 10^th manufacturing unit in India, will have an operational area of about 20,000 square metres and an annual capacity expected to be 80,000 metric tonnes of adhesives and surface treatments. The plant is primarily designed to supply to the Indian market and there will be limited exports taking place.

When asked how the plant’s supplies to the automotive industry, Hunter said, “Presently, 35 percent of Henkel’s business is from the automotive and metal parts industry. The industry is continuously working on the development stages of safety, environmental-friendly, weight reduction and cost reduction. We provide everything from environmental-friendly, anti-corrosion coatings to crash-absorbing structural adhesives.”

“The Kurkumbh plant will primarily focus on consumer packaging and metal and chemicals for the automotive and metal industry. As for the raw material, 50 percent will be sourced locally while the rest will have to be imported,” he added.

Henkel’s plant will be LEED certified by the Indian Green Building Council (IGBC) and will follow the Safety, Health and Environment (SHE) standards.