New Delhi, Jan. 8 -- German construction chemicals and wood paints maker Remmers Gruppe SE will acquire a 50.01% stake in Pune-based Teknovace for Rs 300 crore ($33.3 million). The cross-border transaction, which will be completed in two tranches, will see the family-owned German firm invest in the Indian wood coatings manufacturer to boost its domestic presence and export capabilities. Teknovace plans to deploy the fresh capital to aggressively scale its manufacturing footprint, expanding wood coatings capacity tenfold, from 6,000 tonnes to 60,000 tonnes per annum. The expansion includes setting up an integrated UV coatings facility, an in-house resin unit, and a greenfield construction chemicals plant in India.
The deal also entails the establishment of a global R&D centre in India. Strategically, the partnership aims to position India as an export hub, with Teknovace supplying Asia-Pacific, Middle East, and Africa markets, while also serving as a sourcing partner for Remmers' global network.
Commenting on the partnership, Pankaj Singh, managing director of Teknovace, said, "...Despite India's rich raw material base, the country has historically been a net importer of high-performance wood coatings. Together with Remmers, we aim to change that equation by building global-scale manufacturing, backward-integrated capabilities, and export-ready platforms that position India as a serious player in the global coatings value chain."
Bathiya Advisors acted as the exclusive strategic, financial and deal advisor to Teknovace and the selling shareholders. PwC and JSA served as financial and legal advisors to Remmers, respectively.
Teknovace clocked revenue of Rs 57 crore in FY25 and currently operates two manufacturing facilities with a combined capacity of 6,000 tonnes per annum. Founded in 2019, it claims to have delivered a 43% annual average growth rate since inception, far outpacing the broader paints and coatings industry. Meanwhile, Remmers, founded in 1949, operates in more than 30 countries and has over 75 years of global expertise in advanced coatings, construction chemicals, and material science. In 2024, Asia-Pacific dominated the global wood coatings market with a 57% share, clocking a region-leading 3.9% CAGR. While China remains the anchor market driven by export-focused furniture clusters, India's growing middle class is driving growth in the premium segment, according to Mordor Intelligence.
However, despite India's strong raw material base, the segment remains largely import-dependent and dominated by European suppliers, creating a significant opportunity for domestic manufacturing at a global scale, the statement said.
Published by HT Digital Content Services with permission from VC Circle.