Indo-German JV Benecore bets ₹200 crore on making diaper, sanitary napkin material in India
A key material used in baby diapers and sanitary napkins, largely imported by Indian manufacturers, will now be made domestically, with German-Indian joint venture Benecore Pvt Ltd investing over ₹200 crore in a new manufacturing facility in Bhopal.
The company expects the first phase of the plant to generate about ₹300 crore in revenue. It plans to double the facility's capacity by 2029, taking its revenue potential to about ₹600 crore, Rudra Chatterjee, chairman of Benecore and the Obeetee Group, told Mint.
The material, known as nonwoven fabric, is a thin, fabric-like sheet made by bonding fibres together rather than weaving them. It is used in hygiene products to help hold and distribute liquid, making diapers and sanitary napkins more effective. The softness of the material also matters because it forms part of products used directly against the skin.
Much of the material currently used by Indian diaper and sanitary napkin makers is imported, particularly from China, Chatterjee said. While cheaper, locally made alternatives are available, they do not offer the same liquid-holding capacity, he added.
“What's interesting is that we are making this product domestically, where it has been an imported product,” Chatterjee said.
Benecore, previously known as TWE OBT Pvt Ltd, was set up in 2023, when Germany’s TWE Group GmbH formed a 50:50 joint venture in India with Obeetee Textiles. Obeetee, Chatterjee's other business, was founded in 1920 in Mirzapur, Uttar Pradesh, and is one of the country's oldest manufacturers and exporters of handmade carpets and rugs. The company specializes in luxury hand-knotted, hand-tufted and flat-woven carpets and works with more than 25,000 independent artisans. Its products are sold locally and overseas.
Benecore's facility in Bhopal has two production lines using Air Through Bond (ATB) technology, he said. This technology enables the manufacture of the ultra-soft nonwoven material. He said Benecore is the first Indian manufacturer to offer this capability, outside of much smaller local producers that supply this material for unbranded products.
Global customers
The factory, set up in October, has started commercial production and the company has already begun working with its global customers, including major diaper and sanitary napkin brands in India. Chatterjee did not identify the buyers but said the ambit will cover most brands. These relationships were carried over from its German partner TWE Group, which previously supplied the material to Indian manufacturers from its plants in Germany and China.
The company expects the plant to reach full capacity utilization next year. It has designed the facility to accommodate a second phase that would double production without requiring another building or a substantial increase in its workforce, Chatterjee said.
Chatterjee said demand for diapers and sanitary napkins is expected to grow as their usage expands in India, supported by changing consumption habits and more women joining the workforce. The company sees India as its main market, although it has already started exports and is looking at opportunities in neighbouring countries, West Asia and Africa.
While local production could save on transportation and import-related costs, Chatterjee did not commit to a reduction in prices for diaper and sanitary napkin manufacturers, saying pricing would depend on volumes and individual customer agreements.
Benecore is also looking to expand its presence in other applications for nonwoven materials, including filtration products used in cement factories and air-conditioners, as well as automotive components. Its manufacturing facility in Rudrapur, Uttarakhand, makes materials used in car interiors, including headliners.
The Bhopal plant is expected to employ around 150 people, primarily in technical and engineering roles, as the manufacturing process is largely automated.