India wood coatings sector draws ₹300 crore foreign investment as Remmers and Teknovace partner to build global manufacturing and export hub for high-performance coatings.
A strategic alliance between Indian premium coatings firm Teknovace and Germany’s Remmers Gruppe SE is set to transform India’s wood coatings industry into a global manufacturing and export hub, marking one of the most significant foreign investments in the sector to date. The ₹300 crore deal, in which Remmers will acquire a majority stake in Teknovace, underscores India’s emerging role in advanced construction materials amid growing domestic demand and international market opportunities.
The agreement, structured as a phased acquisition of a 50.01 per cent stake by Remmers in India’s rapidly growing coatings company, reflects a widening focus on speciality materials in India’s manufacturing landscape. Domestic sales of wood coatings — used extensively in furniture, interior finishes and architectural applications — are currently estimated at around US $1.3 billion and are forecast to expand at an annual rate of approximately 11 per cent. Despite India’s strong raw material base and flourishing construction and design sectors, the wood coatings market has remained heavily reliant on imports of high-performance products, largely from European manufacturers. The new partnership aims to challenge that dependency by building globally competitive production capabilities on Indian soil, leveraging Remmers’ expertise in speciality chemicals and advanced coatings technologies.
Under the alliance, the combined entity plans to expand Teknovace’s current production capacity from 6,000 tonnes to 60,000 tonnes per annum, adding critical infrastructure such as an integrated UV coatings plant, an in-house resin manufacturing facility, and a greenfield construction chemicals factory. The partners also intend to establish a global research and development centre in India, combining local innovation with international technology transfer. For India’s furniture and interior design supply chains, enhanced domestic manufacturing of high-performance wood coatings could reduce import costs, shorten delivery timelines and improve resilience against global supply chain disruptions. Urban developers and builders, who increasingly prioritise sustainable and durable materials, stand to benefit from broader access to locally produced, advanced coatings with lower embodied carbon footprints relative to imported alternatives.
Industry analysts note that the partnership aligns with wider national efforts to boost manufacturing competitiveness, particularly in speciality materials where technology intensity and quality standards are barriers to domestic expansion. By integrating global R&D expertise and production scale, the joint venture could elevate India’s presence in export markets across Asia-Pacific, the Middle East and Africa, utilising Remmers’ established distribution networks. The deal also has wider implications for sustainability in construction and urban development: wood coatings are critical in protecting timber and engineered wood products used in housing and commercial interiors. Enhanced local production could encourage the adoption of low-VOC, high-durability coatings that support healthier indoor environments and reduced life-cycle emissions, a growing priority amid urban climate action commitments.
Looking ahead, the success of this investment will depend on operational scale-up, technology integration and the ability to serve both domestic and international demand sustainably. If realised, the project could serve as a model for mid-market speciality chemical sectors, where India’s manufacturing agility and strategic partnerships unlock new avenues for industrial and urban sustainability.
