Henkel banks on industrial adhesives

Germany-based 12-billion euro Henkel KgaA sees India as a growing potential market for both its consumer products and industrial adhesives business. It especially sees faster growth opportunities in the industrial adhesives business as there is a huge demand for such products in the automotive and packaging sectors.

Addressing a press conference, Ulrich Lehner, chairman of the management board, Henkel KGaA, Germany, said that there was a platform for growth in India and the group was planning to grow stronger through organic and inorganic routes.

The group would also bring in more investments and new technologies to India. However, he declined to elaborate on the group's plans.

Henkel Group currently operates through five companies in India -- Henkel India, Henkel Adhesives Technologies India Pvt Ltd, Henkel Chembond Surface Technologies Ltd, Henkel Teroson India Ltd and Henkel CAC. Henkel India is in the branded consumer products business, while the other companies are in industrial adhesives business.

During January-September 2006, Henkel India reported a consolidated net sales of Rs 334 crore, a 12 per cent growth, compared with the figures in the corresponding period of 2005. Of the total sales, laundry and home care segment accounted for 62 per cent and cosmetics division 34 per cent. The professional haircare division contributed the remaining.

During the year ended in December 2005, Henkel India achieved a turnover of Rs 304 crore with a profit of Rs 7 core while the consolidated turnover was over Rs 400 crore. The company is expecting a growth of 12-15 per cent on its topline by the end of 2006, according to A Satish Kumar, managing director, Henkel India.

Referring to industrial adhesives business, Lehner said the company's industrial adhesives business in India was as big as its consumer business and the group saw faster growth opportunities for the same due to strong industrial growth in the country.