TWE group GmbH, an international nonwoven solutions company, has acquired a 50 per cent stake in Obeetee Textiles (OTL), a subsidiary of one of India’s oldest and largest carpet makers, as part of a strategic joint venture.
TWE OBT, the 50:50 joint venture (JV), will seek growth in the Indian market for nonwovens, which are engineered fabric products. For the 50 per cent holding in the JV, TWE has invested 11.5 million euros in cash.
The JV will set up a new facility to manufacture nonwoven products for the health and hygiene sector, a fast-growing segment.
TWE was in 2022 the fifth biggest importer of nonwovens for the Indian market and the JV would allow it to enter manufacturing in the country. TWE will provide technical knowledge for the hygiene business to the JV.
Ingo Söller, general manager Asia of TWE and chief executive officer of TWE OBT, said his company wanted to expand its engagement in India. “Generally, South Asia is a growing market but some countries are a little more interesting for us,” he said.
“Nonwovens is an important sector but the high-end technical solutions have always been imported from Europe or China. TWE OBT will aim to substitute imports,” said Rudra Chatterjee, chairman of Obeetee.
“For one of the major players to come and manufacture in India reflects the growing potential of the market,” he said. TWE OBT would also look at tapping India’s neighbouring countries.
The JV will focus on the hygiene market, automotive and filtration, said Söller.
OTL deals in nonwoven machine-made floor covering items, technical textiles, and other products. It is a key player in the automotive segment, having strategic customer alliances with original equipment manufacturers. TWE is well known globally for its nonwoven products across healthcare, hygiene, automotive, filtration, building, living, segments.
The joint venture partners have a similar background. TWE is family-run and was founded in 1912. The story of Obeetee, the parent of OTL, goes back to 1920, Mirzapur (Uttar Pradesh) when it was founded by three Britishers. It was acquired by Chatterjee-led Luxmi group in 1998.
OPL, a handwoven rug company, has draped many important institutions in the country. The latest feather in its cap is the new Parliament building in Delhi.
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