Sakarni Plaster Announces Rs 450 Crore Investment for Expansion with Two New Building Material Plants.
New Delhi-based Sakarni Plaster (India) Ltd is poised for significant growth in the coming years, with a planned investment of approximately Rs 450 crore to establish two new manufacturing plants dedicated to paints and gypsum boards. This strategic expansion will not only increase the company’s production capabilities but also enhance its existing facilities, positioning Sakarni Plaster to capitalize on the burgeoning demand within the construction and building materials sectors. With total revenues reaching Rs 900 crore in the previous fiscal year, the company is clearly aiming to strengthen its market foothold.
The planned investments will be directed towards new facilities in Andhra Pradesh and Mathura, Uttar Pradesh, allowing Sakarni Plaster to diversify its product offerings and improve operational efficiencies. The company has also announced a joint venture with Coromandel Chemicals Ltd to produce Phospho Gypsum-based green building materials, supported by an additional investment of Rs 150 crore. This focus on sustainable building materials aligns with current market trends favoring eco-friendly construction solutions, which may significantly enhance their competitive position in the market.
Chairman & Managing Director Ashok Gupta emphasized the opportunities present in India’s construction sector, which is currently in a phase of sustained expansion. The strategic investment in new manufacturing capabilities reflects a proactive approach to leveraging these conditions, particularly in a market where Plaster of Paris (POP) continues to be a critical material across residential, commercial, and interior applications. Given that North India accounts for 70% of Sakarni Plaster’s turnover, the decision to expand in this geographic market appears particularly strategic.
The financing of these initiatives will be primarily sourced from internal accruals and bank loans, illustrating prudent financial planning as the company seeks to broaden its operations. With the ongoing launch of new products like ‘Suntara,’ aimed at reinforcing its position in the competitive building materials market, Sakarni Plaster is well-positioned to enhance its growth trajectory and capitalize on the increasing demand for high-quality construction materials.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)