Krones begins construction of US$36.4M bottling machine plant in Karnataka
INDIA – German beverage and food manufacturing giant Krones has commenced the establishment of its Rs 315 crore (US$36.4M) bottling machine manufacturing plant in Karnataka.
The project is part of the Rs 10.27 lakh crore investment proposals signed during the recently concluded Global Investors Meet (GIM) – Invest Karnataka 2025.
Industries Minister MB Patil emphasized the state government’s commitment to realizing the investment projects signed at the summit, highlighting Krones’ decision as a significant step toward industrial growth in Karnataka.
“The Vemagal plant would significantly enhance Krones’ bottling machine manufacturing capacity. The company should also support the families of farmers who lost their land for the project by providing jobs and allocating Corporate Social Responsibility (CSR) funds for local development,” Patil said during the groundbreaking ceremony.
The upcoming facility in Vemagal is expected to create 550 jobs, boosting local employment and contributing to the region’s economic development.
Meanwhile, Krones recorded strong financial performance in 2024, surpassing the €5 billion revenue mark for the first time.
The company’s revenue grew by 12.1 percent year-on-year, reaching €5,293.6 million from €4,720.7 million in 2023.
As a leading supplier of filling and packaging technology, Krones achieved its growth forecast of 9 to 13 percent.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 17.5 percent year-on-year, rising from €457.3 million (US$478.5M) to €537.1 million (US$562.03M). The EBITDA margin improved from 9.7 to 10.1 percent.
The company attributed its growth to stable material availability, which positively impacted production efficiency and overall sales in 2024. In contrast, the previous year faced challenges due to tight supplies of electrical components.
Despite global economic uncertainties, Krones reported strong order intake in the fourth quarter of 2024, which increased slightly from the preceding quarter (€1,323.2 million) to €1,344.6 million (US$1.4B), marking a 6.5 percent rise compared to the fourth quarter of 2023.
For the full year 2024, order intake increased by 1.6 percent year-on-year, reaching €5,460.7 million (US$5.7B) from €5,376.6 million (US$5.6B) in 2023.
Looking ahead, Krones forecasts consolidated revenue growth of 7 to 9 percent in 2025, backed by its ongoing price strategy, efficiency measures, and cost optimization initiatives.
The company aims to further improve profitability, projecting an EBITDA margin of 10.2 to 10.8 percent at the group level.
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