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[November 2007]
Wienerberger Takes First Step in India
Vienna, November 8, 2007 – Wienerberger AG, the world’s largest producer of bricks and the number two in clay roof tiles in Europe, is continuing the pursuit of its international growth strategy through market entry in India. With the start of construction on a hollow block plant northwest of Bangalore, the capital of the South Indian state of Karnataka, Wienerberger has set an important strategic milestone in its Asian expansion.
The first phase of this project will support annual production of roughly 60 million NF (=standard format for bricks), and plans call for a doubling of capacity in consequence. The investment will total more than € 26 million, and is included in the bolt-on program for 2008/2009. “This project marks our entry into a new and highly promising building material market and will create excellent opportunities for further profitable growth. Following the acquisition of Arriscraft in Canada, this investment represents another key step in the expansion of our geographic portfolio“, indicated Heimo Scheuch, member of the Managing Board of Wienerberger AG and responsible for market entry in Asia. “India is one of the largest and fastest growing markets in the world with a population of roughly 1.1 billion and forecasted demographic growth of more than 1% per year as well as an increase of 8 - 10% in disposable income as a result of the strong economic momentum. The demand for housing is increasing steadily due to the low level of housing stocks – conservative estimates show a current deficit of approx. 31 million units – and the ready availability of financing for residential construction. All this makes India a very interesting
market for Wienerberger“, explained Scheuch.Bangalore is situated at a key strategic location in the south of India, close to the fast growing metropolitan areas of Chennai and Hyderabad. It is not only the capital city of Karnataka but also the IT hub of India, which make it the focal point of a relatively broad and affluent middle class. The region is particularly attractive for institutional residential construction as well as urban and non-urban housing projects. “Our goal is to establish a relevant market position in Southern India over the mid-term, with a number of plants and a broad-based presence“, added Scheuch in conclusion.
ENDS