Krones expands India operations with new production plant amid increasing demand for local solutions
Krones is constructing a new plant for the processing, filling, and packaging of F&B products in Vemgal, India. The company aims to offer localized solutions and improve its regional customer services as India’s economy and demand for locally sourced products is expected to further increase this year and beyond, according to industry experts.
Krones expects the facility construction to be completed by 2026, with operations scheduled for the same year.
Peter Moertl, at the Krones press relations team, tells Packaging Insights: “The Indian economy has continued to grow strongly in recent years, and there is no end in sight: the World Bank has forecasted growth to reach 7% in FY 24/25 and remain strong in FY 25/26 and FY 26/27. This puts the subcontinent at the top of the world’s major economies.”
“At the same time, India is the most populous country in the world with a high supply of skilled labor. The trend of urbanization and population growth also applies to this country. For these reasons, India was the logical choice as a future production location.”
Local product demand
The new plant is expected to complement the beverage and liquid food industry technology and services provider’s existing operations in India, which include Krones India, Krones Processing India, Krones Digital Solutions India, and a site of Krones’ subsidiary System Logistics.
According to recent data provided by Innova Market Insights, 37% of consumers in India indicate that the category “Locally produced/sourced” is very influential to their F&B purchasing decision.
The new production site will be developed in three phases and is expected to cover a total of 110,000 square meters in the final stage of construction, says Krones. Of this, 70,000 square meters will serve production and 40,000 square meters will be used to establish green areas.
Krones has been present in India since the mid-1990s and plans to establish a skilled workforce by seeking talented individuals to join its team.
India’s production growth
The construction ceremony was reportedly attended by key stakeholders, including Krones Executive Board Member Ralf Goldbrunner, the CEO of Krones Thailand, Markus Winter, and various officials from the Karnataka government. This event underscores Krones' commitment to expanding its activities in India.
Also in India, SIG opened its first production plant for aseptic carton packs this month. The plant has an initial annual production capacity of up to four billion aseptic carton packs, reportedly meeting environmental standards and creating over 300 local jobs.
According to Innova Market Insights, approximately 28% of Indian consumers prefer using carton packaging for dairy.
Furthermore, India tops the global dairy producer list with the highest number of milk cows of any country, at 59.5 million cows, according to Statista. The world’s leading cow milk producer is the EU, followed by the US and India.
