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Veka AG, the German multinational engaged in uPVC products, is upbeat on India as it prepares to commission a manufacturing plant in joint venture with NCL.
The plant, coming up in Medak district of Telangana, will not only serve the Indian market, but is designed to become a regional hub for West Asia and the African markets.
The $1.2-billion five-decade-old MNC, which currently markets its products under the brand-name Vintec, will henceforth sell under the brand-name Veka.
Andreas Hartleif, Chief Executive Officer of Veka AG, said, “India is a key focus area for Veka as there is huge potential for growth in the uPVC market. We are investing in India to tap the rapidly expanding market and also service the region.”
Ashven Datla, Managing Director of NCL Veka, said, “The company, which has invested over Rs 50 crore in the facility, plans to make additional investments of Rs 25 crore in machinery, product enhancements, new showrooms and marketing.”
The country's windows market is estimated at Rs 13,000 crore, of which about 52 per cent is accounted for by aluminium, 22 per cent by wood, 15 per cent by steel and 12 per cent by uPVC. The market is fragmented but there are growing signs that the uPVC segment is poised to grow at a rapid pace, Datla said.
The new NCL Veka factory, with a capacity of 30 extruders, makes the company the largest player in India. “While 18 extruders have been commissioned, 12 more are expected to be in place over the next year. When the plant is fully operational, we will have the capacity to produce over 30,000 tonnes of profiles, to manufacture over 1.7 million windows annually,” Datla said.
The venture closed last fiscal with a turnover of Rs 163 crore and expects to grow at over 30 per cent. It is aiming at a market share of over 20 per cent in uPVC.
Matthias Koch, Head, Strategic Marketing, Veka, said, “Trends in the construction industry point towards a growing need among people to express their lifestyles and personalities with innovative products and designs. This venture will enable us to offer a new range of products and solutions.”
Intelligent solutions
“Veka is looking at coming out with a new range of innovative, decorative Spectral Folios, which go as a layer above the profiles, and gradually come out with Intelligent Product Solutions (IPS). The IPS range of products are intelligent and go well with the concept of smart homes,” Koch explained.
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