German Knauf Plans to Invest USD 390 Million in Four New Building Materials Plants in India

en.Wedoany.com Reported - German building materials manufacturer Knauf Group has proposed an additional investment of EUR 350 million (approximately USD 390 million) in India, planning to build four new building materials production plants to expand its local gypsum and building materials manufacturing operations. Murat Akyildiz, Managing Partner of the Group, confirmed after a meeting with Piyush Goyal, India's Minister of Commerce and Industry, that the new round of investment will first be implemented in Gujarat, with the first plant planned at EUR 80 million.

The new plant in Gujarat will become Knauf's third production facility in India. Akyildiz stated that the construction land for the project is ready, and the production machinery and equipment to be invested in are also ready. The company plans to make this plant the first implementation project of this expansion, but has not yet announced the official commencement, equipment installation, or production start dates.

Knauf currently operates two building materials manufacturing plants in India, located in Khushkhera, Rajasthan, and Sri City, Andhra Pradesh. Both plants produce gypsum boards, drywall systems, and related building materials. Among them, the Khushkhera plant added a metal profile production line in December 2025, expanding its manufacturing capacity for drywall and ceiling system supporting materials.

According to the investment arrangement published by the company, the four proposed plants will further increase the number of Knauf's local production facilities in India. In addition to the EUR 80 million investment for the first plant in Gujarat, the specific locations, individual investment amounts, and construction timelines for the remaining three plants have not been announced. The Group has also not disclosed the designed annual capacity, number of production lines, or expected employment scale of the new plants.

This investment plan was disclosed during Indian Minister of Commerce and Industry Goyal's visit to Germany. The two sides discussed Knauf's expansion of local manufacturing operations in India, sustainable building materials production, and cooperation in the infrastructure market. Knauf proposes to continue expanding local production, reduce dependence on imported supplies for certain building materials, and serve India's domestic construction market through the new manufacturing facilities.