Saint-Gobain to Boost India Capex, Eyes Export Hub Status

Introduction

French construction materials major Saint-Gobain has announced plans to significantly accelerate capital expenditure and acquisitions in India. Speaking at the World Economic Forum 2026 in Davos, Chairman and CEO Benoit Bazin detailed a strategy that not only deepens the company's domestic footprint but also positions India as a crucial export hub for its global operations. This move underscores the country's growing importance in the multinational's long-term growth strategy, driven by robust infrastructure demand and a competitive manufacturing ecosystem.

India's Strategic Importance

India has emerged as a powerhouse for Saint-Gobain, ranking among the top five most profitable markets for the group worldwide and holding the number one position for growth. The company's journey in the country, spanning over three decades, has been marked by consistent expansion. Bazin highlighted that the Indian business has doubled in size every five years and has grown four-fold over the past decade. Last year alone, the company's volumes in India grew by 10%, outpacing the country's GDP growth by three percentage points. This performance, Bazin noted, is a clear indicator of the strength and potential of the Indian market.

Accelerated Investment and Acquisitions

With close to €2 billion already invested across 82 manufacturing plants, Saint-Gobain is preparing for its next phase of expansion. The company is actively pursuing a dual strategy of organic growth through capital expenditure and inorganic growth via acquisitions. Bazin confirmed that the company is "thinking big" about future investments, citing the recent purchase of a large parcel of land southeast of Chennai to support capex plans for the next ten years. This approach is complemented by strategic acquisitions, such as the recent purchases of Fosroc in construction chemicals and Maincoat in high-performance waterproofing, which strengthen its portfolio for infrastructure projects.

A New Regional Export Hub

A significant strategic shift involves transforming India into a regional manufacturing and export base. Currently, exports constitute about 5% of Saint-Gobain India's output. However, Bazin expressed confidence that this figure could rise to between 10% and 15% over the next five years. The company is actively building capabilities and investing in product qualification to cater to international markets, specifically targeting Southeast Asia and Australia. This export push aligns with the broader global trend of de-risking supply chains by establishing strong regional manufacturing hubs, leveraging India's scale, cost-competitiveness, and skilled workforce.

Key Data at a Glance

Market Drivers Fueling Growth

Saint-Gobain's bullish outlook on India is supported by powerful long-term structural drivers. The country's rapid urbanization, population growth, and significant infrastructure buildout create sustained demand for construction materials. Bazin pointed to major projects, including the plan to build over 300 new airports in the next decade, alongside extensive development of highways and metro networks. Furthermore, the aspirations of a growing middle class for better quality housing provide a strong foundation for the residential construction market. The company is also focused on sustainable construction, having participated in 70% of India's certified sustainable buildings.

Beyond Manufacturing: Innovation and Talent

India's contribution to Saint-Gobain extends beyond the factory floor. The country serves as a vital hub for talent and innovation. The company employs over 400 researchers at its facility in Chennai, focusing on R&D and sustainable solutions. Additionally, a team of approximately 2,000 IT and digital professionals in India supports Saint-Gobain's global operations, driving initiatives like Manufacturing 4.0 and developing new digital solutions. This combination of manufacturing prowess, research capabilities, and digital talent makes India a uniquely valuable part of the company's global network.

Analysis and Outlook

Saint-Gobain's strategy reflects a deep confidence in India's economic trajectory. By increasing investments and establishing an export hub, the company is embedding its Indian operations more deeply into its global supply chain. This move capitalizes on India's demographic advantages and its government's focus on infrastructure and manufacturing. The emphasis on high-performance, sustainable materials also aligns with global construction trends and India's environmental goals. The combination of scale, growth, and profitability makes India a central pillar of Saint-Gobain's future strategy.

Conclusion

In summary, Saint-Gobain is set to significantly enhance its presence in India through accelerated investments, strategic acquisitions, and the development of a regional export hub. The company's plans, articulated by its top leadership, signal a long-term commitment to the Indian market, which is already a top performer in its global portfolio. As India continues its path of economic expansion and infrastructure development, it is poised to play an even more critical role in Saint-Gobain's global success story.