NCL VEKA, announces INR 250 Million investments
NCL VEKA announced today the commissioning its new 1,50,000 square foot, uPVC extrusion facility in Hyderabad with fully automated mixing and conveying system. The company also revealed plans to open 4 new showrooms in India.
The top global producer of the uPVC Window Profiles, VEKA, bets on surging demand for quality window profiles, amid improving demand in housing, hospitality, education and healthcare industry growth in India and Middle East & Africa (MEA) markets.
NCL VEKA, a 50:50 JV, on Thursday announced a fresh investment to a tune of INR 250 MM in machinery, product enhancements, new show-rooms and marketing outlay. This investment is in addition to 500 MM into machinery and building of the factory in Hyderabad already invested by the Company.
“India is a key focus area for us, the growth potential for uPVC windows in this region is expected to far out-perform any region in the globe. We are making the required investments in this region to capitalise on this opportunity.” Andreas Hartleif, CEO of VEKA AG told reporters.
NCL VEKA expansion plans come at a time when demand is increasing. uPVC has been a late entrant in the Indian market and currently holds 15% share of the window market. Even in a sluggish real estate market, demand for uPVC has witnessed consistent growth of around 25% over the last decade and uPVC is becoming the preferred choice for windows because of better aesthetics, longer life, less maintenance, better insulation and factory finished windows.
Addressing the media in Hyderabad AshvenDatla, Managing Director of NCL VEKA said “The Company aims to retain its market leader position in a competitive market using multi-pronged investment in infrastructure, product development and brand development. We will continue to explore both organic and inorganic growth in India.”
NCL VEKA has been aggressively growing with 30% growth YoY. It clocked a turnover of 163Cr (Fiscal 2017-18) and has built strong partnerships with 250 specialist fabricators to serve markets across India.
The new NCL VEKA factory, with capacity for 30 extruders, makes the company the largest player in India. “While, 18 Extruders are already ordered and commissioned, 12 more are expected to be in place over the next year. When the plant is fully operational we will have the capacity to produce over 30,000 tons of profiles, to manufacture over 1.7 million windows annually.” Ashven added.
The Head of Strategic Marketing of VEKA, Dr. Matthias Koch said “Trends in the construction industry are evolving, consumers are looking at bathrooms, kitchens and windows as an expression of their lifestyles and personalities. These developments offers new growth avenues for our products, and we are well positioned to tap into these opportunities.”
VEKA is a $1.2 Billion, world’s largest producer of uPVC profiles with operations in manufacturing units in 18 countries, operations in 40 countries and total employees of 5,500.
NCL is an INR 1500 Crore building materials manufacturer based out of Hyderabad with products ranging from Cement, Boards, Windows, Doors, Paints & Plasters and AAC Blocks.