Jushi India Fibreglass, part of China’s Jushi Group, plans to set up a fibreglass manufacturing plant at Talegaon in Maharashtra next month, with an investment of $246 million (about ₹1,650 crore). The plant will have a production capacity of 1 lakh tonnes and employ about 600 engineers. The construction is expected to be completed in 15 months. Jushi plans to invest another $250 million in the second phase in five years.
The company had signed a memorandum of understanding with the Maharashtra government in 2015 for the project and was assigned various sops under the ‘ultra mega project’ scheme, as part of the Make in India initiative. However, the 58 acres of land assigned to Jushi was full of ‘encumbrances’, and it took almost three years for the company to acquire a clear title on land besides getting various approvals.
The ample availability of raw materials, such as silica, limestone and china clay in Rajasthan and Gujarat had tilted the scale in India’s favour for this project.
Of the 1 lakh tonne planned fibreglass production, Jushi will export about 30,000 tonnes. India imports about 1,10,000 tonnes of fibreglass annually to meet the demand of 1,70,000-1,80,000 tonnes.
The demand for fibreglass is growing at a CAGR of 6-8 per cent with strong demand from optic fibre cable companies and automobile component makers besides the wind energy and power sectors.
The Jushi Group has four production bases with three in China and one in Egypt. It has trading subsidiaries in South Africa, South Korea, Italy, Spain, France, Canada, India, Singapore, Japan, the US, and Hong Kong. It employs about 8,000 people across the globe.