Kingspan to target India in joint venture
Kingspan has launched an assault on the massive Indian market with a new joint venture aiming to take advantage of the shift to modern construction methods in the country.
It is understood Kingspan has a controlling interest in the joint venture, alongside partner Jindal Mectec.
"Investing in India is a key element of Kingspan's geographic growth strategy. The JV will also cover Bangladesh, Sri Lanka and Nepal and Bhutan," said Gilbert McCarthy, managing director of Kingspan's insulated panels division.
The Cavan-based company has repeatedly emphasised its plans to expand its footprint around the world. In 2017, it expanded its manufacturing footprint with partnerships in Brazil and Colombia, describing Latin America as a "new frontier for Kingspan".
It also recently announced deals to expand in central and southern Europe.
The Indian joint venture will be known as Kingspan Jindal.
Jindal Mectec said the growth in modern construction in India was being fuelled by "strong domestic and foreign direct investment momentum in infrastructure; high-end production facilities in the fast-moving-consumer-goods, food and pharma sectors; distribution centres and warehousing; and cold chain facilities and other segments".
Jindal is India's largest manufacturer of insulated panels. The joint venture will have two modern factories, a pan-Indian sales and partner network and full access to Kingspan's technology.
Last month Kingspan boss Gene Murtagh told shareholders that the company had a sluggish start to 2018 due to a prolonged winter in many regions.
But he said the order backlog across the group pointed to a good second quarter.