Italian company closed 2024 on a positive note : Sirmax expands operations in India
Sirmax Group, a company specialising in the production of thermoplastic granules for various application sectors such as automotive, household appliances, electrical and electronics, furniture, construction and many others, has completed the renovation of its Indian plant in Palwal and started land preparation for the greenfield construction of a new Indian plant in Hosur, which will be operational from 2027. The Cittadella Group is already present in India with two plants (Palwal and Valsad) controlled by the Autotech-Sirmax joint venture. The Hosur plant will be the third in India and the fourteenth worldwide. Total new investments in India at Palwal and Hosur amount to approximately $10 million (Palwal and Hosur), driven by a robust recovery in domestic demand. This is underpinned by the Group's strong overall performance in 2024, with sales of 420 million (+10% volume growth).
15% annual growth in India
Sirmax is growing at a rate of 15% per annum in India thanks to the domestic market alone. The redevelopment of the Palwal plant has transformed it into a modern, technologically advanced facility with four new extrusion lines, state-of-the-art laboratories and new automated warehouses. Production capacity has doubled from 15,000 to 30,000 tonnes per annum to meet growing demand from the automotive (electric vehicles), white goods and electrical and electronics sectors.
The expansion of the Palwal plant is part of the group's broader growth strategy to position itself as one of the leading producers of engineering thermoplastics and polypropylene-based compounds in India. This development is complemented by the greenfield construction of the Group's third plant in the country, located in Bangalore-Hosur (South India). Construction has started with land preparation on a site of approximately 20,000 square metres. The new plant is expected to be operational within two years, enabling Autotech-Sirmax to strengthen its position as a 'glocal' supplier, serving both the domestic market and expanding its reach across Asia.
"After our investment, India will be a modern hub where customers will be able to find the same know-how as in all other regions of the world," explains Massimo Pavin, President and CEO of the Sirmax Group. "At present, India accounts for about 10% of Sirmax's total business, but growth expectations are high - consider that the country has a population of 1.4 billion and an economy growing at 6.5% per year.
"The completion of the Palwal plant expansion," adds Achal Thakkar, Managing Director of Autotech-Sirmax India, "reflects our commitment to providing world-class materials and solutions to our customers. This investment will enable us to meet the rapidly growing demand for high performance compounds in India and international markets, while strengthening our ability to drive sustainable innovation. It is the beginning of an exciting new phase for Autotech-Sirmax India.
The Group closed 2024 with a turnover of 420 million euro
2024 ended on a positive note for Sirmax. Sales reached 420 million euros (figures that should also be read in relation to the evolution of raw material prices), up from 410 million euros in 2023, thanks to a +10% increase in global production volumes. The main drivers were India, Brazil and the United States. Europe, which accounts for 65% of total sales, also saw a slight recovery, despite high inflation, an increase in the cost of living and a decline in demand for durable goods and consumer bargaining power.
Two factors in particular have paid off for Sirmax: its new business model, based on sustainability, which has enabled it to develop high-performance green products that now form part of 90% of its projects; and its multi-country, multi-product philosophy, which means internationalisation with short supply chains to cover all areas of the world.
"You have to be present where demand is growing. Producing within a market for that market is still a winning strategy - especially in today's climate where economies are closing and the demand for local supply chains is increasing," adds Massimo Pavin.
On the product front, Sirmax is experiencing strong growth in the electrical and electronics sector, with a focus on both the construction and industrial segments. In particular, the company is expanding its range of flame retardant, i.e. self-extinguishing, and recycled content products designed and formulated to meet the needs of this market.
