Knauf Group to Invest €350 Million in Four New India Plants

Germany’s Knauf Group plans to invest €350 million in India to establish four new manufacturing plants, expanding its presence in construction materials and supporting demand from the country’s growing building and infrastructure sectors.

German building materials manufacturer Knauf Group is planning to invest approximately €350 million (around ₹3,700 crore) in India to expand its manufacturing footprint, with plans to establish four new plants. The investment reflects the company’s strategy to strengthen its presence in one of the world’s major construction markets amid rising demand for building materials.

The planned expansion is expected to support Knauf’s growth in India’s construction and infrastructure sectors. The company manufactures construction materials and systems, including gypsum-based plasterboard, drywall solutions, ceiling systems, plaster and insulation products. These materials are widely used in residential, commercial and industrial buildings, where demand for faster construction, thermal insulation and efficient interior solutions is growing.

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Knauf has already established a manufacturing presence in India, including facilities at Khushkhera in Rajasthan and Sri City in Andhra Pradesh. In December 2025, Knauf India expanded production capacity at its Khushkhera facility by introducing a new metal production line, strengthening its ability to supply drywall and ceiling systems to the domestic market.

The proposed investment would further strengthen the company’s local manufacturing network and could improve supply capacity as India continues to invest in housing, commercial real estate, transport infrastructure and industrial development. Establishing additional plants would also help the company serve regional markets and respond to changing demand for modern construction materials.

Knauf operates internationally, with manufacturing facilities across more than 90 countries. Its product portfolio includes drywall systems, insulation materials, plaster and ceiling solutions, supporting applications ranging from interior construction to building energy efficiency. The company has identified manufacturing expansion, innovation and sustainability as important elements of its wider business strategy.

The planned investment also comes as India seeks to strengthen domestic manufacturing and attract foreign capital into industrial sectors. Greater local production of construction materials can help improve supply chain resilience and support the construction industry’s requirements as urbanisation and infrastructure development continue.

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However, further details regarding the four proposed plants-including their locations, construction schedules, production capacities and expected employment generation-were not established in the available reports. The implementation timeline and the distribution of the proposed investment across the facilities will be important indicators of the project’s eventual economic impact.