In a significant move for the Indian specialty chemicals sector Remmers Gruppe SE a 75-year-old German leader in wood coatings and construction chemicals, has entered into a strategic partnership with Pune-based Teknovace.
Announced on January 8, 2026 the ₹300 crore investment will see Remmers acquire a 50.01% stake in Teknovace over two tranches. This partnership is designed to transform India into a global manufacturing and R&D hub for high-performance coatings, targeting exports to Europe, the Middle East and Africa.
Strategic Expansion & Infrastructure
The capital infusion will be used to aggressively scale Teknovace’s manufacturing footprint, moving the company from a domestic player to a global-scale producer.
- Massive Capacity Jump: Wood coatings production will scale tenfold, increasing from 6,000 tonnes to 60,000 tonnes per annum.
- Greenfield Projects: The deal includes the construction of a new construction chemicals plant and an integrated UV coatings facility.
- Backward Integration: Teknovace will establish an in-house resin manufacturing unit to reduce raw material dependency and improve margins.
- Global R&D Center: A new research facility will be established in India, combining German technology with local engineering talent.
Why This Matters for the Indian Market
India’s wood coatings market is currently valued at $1.3 billion and is growing at 11% annually. Despite this growth, the sector remains heavily reliant on imports from Europe.
- Import Substitution: By manufacturing high-performance coatings locally, Teknovace aims to replace expensive European imports with “Made in India” alternatives that meet the same quality standards.
- Export Hub: Under the agreement, India will serve as a sourcing partner for Remmers’ international network, supplying the Asia-Pacific and African markets.
- Employment: The expansion is expected to create significant high-skilled jobs in R&D and automated chemical manufacturing.
Partnership Snapshot
| Feature | Details |
| Investor | Remmers Gruppe SE (Germany) |
| Investee | Teknovace (Pune, India) |
| Investment Value | ₹300 Crore |
| Stake | 50.01% (to be renamed Teknovace Remmers Pvt. Ltd.) |
| Primary Goal | Tenfold capacity expansion & export hub creation |
| Technology Focus | UV Coatings, Resins, and Construction Chemicals |
“This partnership is not just about capital; it is about building a deeply integrated, technology-led manufacturing ecosystem in India… and changing the equation where India has historically been a net importer.” — Pankaj Singh, MD, Teknovace
