TN Global Investor Summit: Saint Gobain to close ₹3,400 crore investment by FY28, says India CEO

He added, "This site and smaller investments at other sites within Tamil Nadu will see a total of ₹3,400 crore rupees in investments between now and FY-28. So, this isn't a 10-year plan — it's much lesser."

In October, Saint Gobain announced its latest investment for its India business, largely based in Tamil Nadu. A total of ₹3,400 crore would be added to the ₹5,000 crore that the company has invested in the state, in its 26-year-long innings here. CNBC-TV18 has learnt that the company's new plant in Oragadam, will see its glasswool production capacity double, even as glass and plasterboard capacities could go up by 20% and 33% respectively.

These production numbers, Santhanam said, could see a further uptick if Saint Gobain's strategic partnership with First Solar sees the latter expand its own capacities. Incidentally, First Solar is all set to launch an integrated manufacturing facility in Sriperumbudur, on January 11, focusing on solar PV module production.

So, it comes as no surprise that Saint Gobain believes there may well be potential for further investments after FY28, should market conditions permit: "If the conditions are good that fiscal, I'm sure the next generation of leaders will look at this site with the opportunity to double investments." Incidentally, Oragadam plant, Santhanam said, would run with 75% sustainable energy, thanks to biofuel, biomass and green hydrogen sources integrated on site.

With nearly 26 years in Tamil Nadu, thanks largely to its World Glass Complex located in Sriperumbudur, Saint Gobain has traditionally reserved a large chunk of its investments for the state, despite having manufacturing presence in NCR, Mumbai and Gujarat, among other states.

"We have investments in many states, but Tamil Nadu accounts for a huge chunk of our capital-intensive investments because it is an easy state," said Santhanam, "Over the last 25 years, a massively committed bureaucracy consistently supported by a progressive government has helped us. The state has the best social, hard and soft infrastructure with a readily available talent pool."

He added that the French glass-maker's India business will grow at a CAGR of 7% for the next decade. The projection comes even as Saint Gobain scripted a 75% growth in India, when compared to pre-pandemic levels — its India business accounted for ₹7,500 crore in revenue in 2019, from where it has grown to ₹13,500 crore today.

These growth projections come on the back of what Santhanam believes is a promising outlook for India's manufacturing sector. "Inflation and commodity prices are cooling off now," he said, "This will benefit manufacturing as India has already gone through the most difficult period of commodity inflation, and has managed its economy well."

With the Union Budget less than a month away, containing fiscal deficit and continuing capital expenditure should be atop the finance ministry's priority list, said the India CEO. "Over the years, the government has looked at the budget as an exercise in continuity and consistency," said Santhanam, "I think that will continue"

He added, "I have a simple suggestion — not as an industry person but an Indian — and that is: contain the fiscal deficit to some extent, invest heavily in capex and maintain that investment ratio, support sustainability, and leverage the geopolitical conditions that can help us breakout in manufacturing."

The government's Performance Linked Incentive (PLI), Santhanam pointed out, was a key example of a scheme that could be "expanded and accelerated". He said, "There are not too many places in the world that offer what India does — a strong economy, well managed infrastructure and an improving geopolitical situation.