TWE Group and Obeetee Textiles form joint venture in India
JV will invest in a new manufacturing facility to manufacture nonwoven products for the health and hygiene sector.
TWE Group and Obeetee Textiles (OTL) have announced a strategic joint venture in which TWE and OTL, a leading manufacturer of nonwoven textiles in India, have entered into a 50:50 partnership. This joint venture will be named TWE OBT.
In this collaboration, TWE has acquired a 50 per cent shareholding in OTL, embarking on a partnership and setting the stage for growth in the Indian nonwovens market. TWE is well known globally for its nonwoven products in the Health & Hygiene segment with customers in India. The JV will be investing into setting up a new manufacturing facility to manufacture nonwoven products for the Health and Hygiene sector and will be driving growth and market expansion into this fast growing segment.
The joint venture represents an equal partnership between TWE and OTL, with each company holding a 50 per cent stake. This equity structure ensures a balanced and collaborative approach, leveraging the strengths and resources of both organisations. TWE Group has invested cash into the existing business for the 50 per cent holding in the joint venture.
The strategic alliance brings together the industry expertise, market knowledge, and technical capabilities of both TWE and OTL. This synergy will drive innovation, efficiency, and competitiveness, enabling the joint venture to deliver exceptional value to customers. OTL is already a key player in the nonwoven segment in India, particularly the Automotive segment with strategic customer alliances with key OEMs. TWE is well known globally for its nonwoven products across healthcare, hygiene, automotive, filtration, building, living and cleaning.
The joint venture unlocks new growth opportunities by combining the market reach and customer bases of both companies. This expanded footprint will enable the joint venture to access untapped markets, diversify revenue streams, and forge stronger relationships with customers in India and neighbouring countries.
As equal partners, TWE and OTL will collaborate closely on strategic decision-making and operational matters. The shared governance structure will ensure that both parties have an equal say in shaping the direction and objectives of the joint venture.
The collaboration will enable the efficient allocation of resources, sharing of best practices, and the realisation of synergies between TWE and OTL. This will optimize operational efficiencies, enhance productivity, and drive sustainable profitable long-term growth.
The joint venture remains committed to providing exceptional customer experiences in India. By leveraging the combined capabilities and expertise of TWE and OTL, the joint venture will offer a broader range of innovative products, services, and solutions that meet the evolving needs of customers.
Jörg Ortmeier, group CEO TWE, says: “We are thrilled to announce this significant milestone in our journey, as TWE enters into a 50:50 joint venture with OTL. This partnership brings together our shared vision, complementary strengths, and extensive industry knowledge. We are confident that the joint venture will unlock new opportunities, drive innovation, and create long-term value for our customers and stakeholders.”
Rudra Chatterjee, chairman OTL, adds, “The joint venture with TWE marks an important chapter for OTL. This partnership combines TWE know how, OTL’s operational experience to deliver enhanced solutions value to our customers. Together, we are committed to building a successful and sustainable joint venture that will drive growth and set new industry standards.”