Krones, a global leader in beverage processing, filling, and packaging technology, is expanding its presence in India with the construction of a new production plant in Vemgal, Karnataka. This facility aims to cater to the increasing demand for locally produced solutions, reflecting India’s booming economy and evolving consumer preferences for domestically sourced products.
The plant is expected to be completed and operational by 2026, reinforcing Krones’ commitment to the Indian market.
Strategic Investment in a Growing Market
Peter Moertl, from Krones’ press relations team, stated:
“The Indian economy has shown robust growth in recent years, and this trend is expected to continue. The World Bank projects a 7% growth rate for FY 2024/25, with strong momentum anticipated through FY 2026/27, placing India among the world’s fastest-growing economies.”
India’s rapid urbanization, skilled labor force, and expanding population were key factors in selecting the country as a strategic production hub.
Enhancing Local Production Capabilities
Krones’ new facility will complement its existing operations in India, which include:
- Krones India
- Krones Processing India
- Krones Digital Solutions India
- System Logistics (a Krones subsidiary site)
The facility will be developed in three phases, covering 110,000 square meters upon completion. The production area will span 70,000 square meters, with 40,000 square meters dedicated to green spaces.
India’s Growing Demand for Locally Produced Goods
According to Innova Market Insights, 37% of Indian consumers prioritize locally sourced products when making food and beverage (F&B) purchasing decisions. This shift aligns with Krones’ investment strategy to offer localized solutions tailored to Indian market needs.
Krones, which has been operating in India since the mid-1990s, aims to strengthen its workforce by recruiting skilled professionals, reinforcing its long-term commitment to the region.
Industry-Wide Expansion in India
Krones’ groundbreaking ceremony was attended by key executives, including:
- Ralf Goldbrunner, Krones Executive Board Member
- Markus Winter, CEO of Krones Thailand
- Government officials from Karnataka
The expansion reflects a broader trend in India’s growing production sector. Recently, SIG inaugurated its first aseptic carton packaging plant in India, with an annual production capacity of four billion packs, adhering to environmental standards while generating over 300 local jobs.
India’s Dairy and Packaging Growth
- 28% of Indian consumers prefer carton packaging for dairy products (Innova Market Insights).
- India has the world’s largest dairy industry, with 59.5 million milk cows (Statista).
- The EU, US, and India are the top three global cow milk producers.
Looking Ahead
With its expanding local footprint, Krones is positioning itself to capitalize on India’s economic and industrial growth, ensuring stronger supply chain integration and improved service capabilities for the Indian market.
