Hampiðjan has started construction of new manufacturing facilities in India as part of its expansion strategy following the acquisition of Kohinoor.
The project is located in Auric, near Aurangabad, where the company secured a 120,000-square-metre site. Construction is now underway on two factory buildings totalling 56,000 square metres, alongside office and service facilities.
Large-scale build underway
The first phase covers 59,200 square metres. It includes one building for net lofting and another for net manufacturing. A 2,000-square-metre office and a 1,200-square-metre service area will also be built.
The workforce is expected to reach around 750 when operations are fully established. At peak construction, about 500 workers will be on site.
Tight timeline for completion
The first factory is due to be completed by the end of July. The second is scheduled for the end of August. Office and service buildings should be ready by October, with final site works completed in November.
Construction costs are about €234 per square metre. Total building investment is around €13.8 million, with land costing an additional €4.8 million.
Focus on efficiency and growth
CEO Hjörtur Erlendsson said the project will strengthen production capacity and improve efficiency. He pointed to lower labour and production costs in India compared to existing operations in Lithuania.
The new site will support the production of aquaculture cages and fishing gear. Labour-intensive processes, such as sewing rigid polyethene nets, are suited to local conditions.
Operations at the net loft are expected to start in September, with further efficiency gains anticipated from next winter.