German building materials manufacturer Knauf Group plans to invest an additional €350 million, approximately ₹3,720 crore, in India and establish four new plants, according to media reports published on 23 October 2026. The proposed expansion would add to the company’s existing manufacturing operations in the country.
The plans were outlined by Murat Akyildiz, Global General Partner at Knauf Group, following discussions with Union Commerce and Industry Minister Piyush Goyal in Berlin.
Gujarat plant to lead expansion
According to media reports, the first of the proposed facilities will be located in Gujarat, with an investment of €80 million. Akyildiz indicated that land and machinery for the project were ready and expressed confidence about its progress following the meeting with Minister Goyal.
The reports said Knauf currently operates two plants in India. The proposed four additional facilities would expand its manufacturing presence, although a completion schedule for the overall investment was not specified.
Focus on local manufacturing
According to media reports, Akyildiz linked the expansion to the company’s strategy of producing within India and creating value through domestic manufacturing. He cited the government’s Make in India and Vocal for Local initiatives, alongside confidence in India’s economic potential and policy environment.
Knauf manufactures gypsum-based plasterboards and insulation systems and operates in more than 90 countries. Its proposed investment would deepen its local production capabilities in the Indian building materials market.
The company’s engagement with Minister Goyal also covered sustainable construction materials and infrastructure development, according to reports on the Minister’s Berlin meetings. The proposed expansion adds a building materials dimension to the business discussions taking place during his Germany visit.
