Hampiðjan has begun extensive development at a new industrial site in Auric, near Aurangabad in India, following the company’s acquisition of the Indian firm Kohinoor.
Last autumn, a 120,000 square metre plot was secured in the Auric industrial area, with permission to build up to 76,000 square metres. Construction is now underway on two 28,000 square metre factory buildings: one for net lofting (fish farming nets and fishing gear) and another for net manufacturing. In addition, a 2,000 square metre office building and a 1,200 square metre service and canteen facility for employees will be built. The workforce is expected to reach around 750 once operations are fully established. Total construction in this first phase amounts to 59,200 square metres.
The project has been contracted to the construction company SCON, a large and well-established firm with approximately 6,000 employees, including around 1,200 engineers. At peak activity, around 500 workers will be on site, reflecting the high pace of construction.
The construction site at the new industrial area in Auric, India.
The first factory building is scheduled for completion by the end of July, and the second by the end of August. The office and service buildings are expected to be completed by the end of October, with final site works—including roads and green areas—finished in November. Construction costs are approximately €234 per square metre (around ISK 34,000), which is considered low by international standards. Total investment in the buildings amounts to approximately €13.8 million, with the land costing an additional €4.8 million.
“This development is an important step in strengthening our production capacity while improving efficiency and operational flexibility. With facilities in Auric, we can combine the knowledge and experience of Kohinoor and Hampiðjan to build a strong production base for both aquaculture and fishing gear in the long term. Production and labour costs in India are highly competitive compared to Lithuania, where we currently operate two large net lofts and a technologically advanced rope factory producing high-performance ropes and lifting slings from advanced materials. This year will largely be devoted to construction and commissioning, and we therefore expect to begin realising efficiency gains next winter, and even more so the following year,” says Hjörtur Erlendsson, CEO of Hampiðjan.
The Auric development is also important for further advancing the production of aquaculture cages, particularly those made from rigid polyethylene netting, which must be sewn by hand due to the stiffness of the material. This type of production is labour-intensive and therefore well suited to India. Production of cages from softer materials, such as nylon and high-performance fibres, is also being initiated at Kohinoor, alongside training of staff in net assembly to build a specialised workforce. Operations at the net loft are expected to begin in September, with installation of machinery for aquaculture net production also starting at that time.
The location in Auric offers strong infrastructure, access to labour, and efficient connections to both domestic and international markets. Proximity to Kohinoor’s existing operations in Jalna and Selu also creates valuable operational synergies and supports Hampiðjan’s continued growth in this sector.
