Why Saint-Gobain is Expanding its India Manufacturing Hub

French materials manufacturer Saint-Gobain is repositioning its Indian operations as a critical node within its global supply chain network. CEO Benoît Bazin outlines plans to expand the country's role beyond domestic manufacturing, transforming it into a strategic export hub serving Asia-Pacific markets.

This shift reflects broader supply chain diversification trends seen across the industry, as manufacturers seek resilient production bases outside of traditional hubs.

The approach taken by Saint-Gobain centres on building long-term infrastructure capacity in India while developing export corridors to Southeast Asia and Australia. This signals a change in how the company structures its regional logistics and distribution networks.

Benoît tells CNBC: "When we buy a piece of land in India, we think about all the capex we can deploy over the next 10 years. We are building capabilities to export to Southeast Asia and to Australia. It's not only production for the domestic market anymore."

Increasing regional export capabilities

This strategic repositioning could transform supply chain dynamics for Saint-Gobain across the Asia-Pacific region. According to Benoît, the Indian operations of the company have doubled every five years, and there are expectations that this growth could accelerate further as export capabilities mature.

Currently, exports represent approximately 5% of the total output from Saint-Gobain India. However, Benoît tells CNBC this could rise to 15% over the next five years, indicating a planned threefold increase in export volumes.

Such an expansion could require significant logistics infrastructure development and supply chain coordination across multiple markets.

The manufacturing footprint in India now encompasses more than 20 sites operating 82 production lines, supported by nearly 10,000 employees. This distributed network provides the organisation with flexible production capacity and proximity to both domestic customers and export shipping routes.

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Developing integrated manufacturing infrastructure

The World Glass Complex in Rajasthan demonstrates the approach Saint-Gobain takes regarding the creation of scalable, strategically located production facilities. The 70-hectare site required an investment exceeding US$185m and can manufacture close to 1,000 tonnes of glass daily.

The location of the facility on the Delhi-Mumbai industrial corridor provides critical access to transport networks serving northern India whilst connecting to export channels. Automation and robotics integration throughout the complex could enable the flexibility needed to serve diverse market requirements across different regions.

A float line launched in 2019 incorporates energy-efficient furnace technology and rooftop solar photovoltaic panels. This addresses both operational costs and sustainability requirements increasingly demanded by global supply chains.

The site also produces ORAÉ, which is India's first low-carbon glass manufactured using recycled content and renewable energy. This positions Saint-Gobain to meet evolving procurement standards in the construction sector.

Strategic growth through acquisition

The Indian supply chain network for Saint-Gobain has developed significantly through acquisitions since entering the market in 1996 with the purchase of Grindwell Norton. Since then, the company has systematically added capabilities across different product categories and geographic locations.

Key acquisitions include British Plaster Board in 2005, which integrated the Gyproc brand into Indian operations, and a float plant near Bharuch, Gujarat from Sezal Architecture Glass in 2011.

More recent purchases of Chryso and Rockwool India in 2021, followed by FOSROC in 2024, have expanded the extensive construction materials portfolio and manufacturing capacity held by the company.

Saint-Gobain Research India, established in Chennai in 2012, develops solutions for hot and humid climates. This enables product adaptation for regional markets across South and Southeast Asia.

The research centre, inaugurated in 2016, supports the ability of the company to customise products for specific supply chain requirements in different territories.

The Central Vista Project in New Delhi showcases the breadth of the operations Saint-Gobain maintains in India. The company supplied 11 different solutions to the US$1.9bn redevelopment including high-performance glass, plaster, plasterboard, construction chemicals and insulation.