Financial Daily from THE HINDU group of publications
Friday, Feb 18, 2005
Financial Daily from THE HINDU group of publications Friday, Feb 18, 2005 |
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Textiles Corporate - Alliances & Joint Ventures Raymonds to form Rs 180-cr jt venture with Italian firm — Another Rs 100-cr initivative planned Our Bureau
Mr Gautam H. Singhania (right), Chairman & Managing Director, Raymond Ltd, and Mr Pradeep Bhandari, Deputy Group President and Wholetime Director, at a press conference in Mumbai on Thursday. - Paul Noronha
Mumbai , Feb. 17 RAYMOND Ltd on Thursday announced two major initiatives entailing a total investment of Rs 280 crore aimed at strengthening its position in the textile sector. These initiatives include a joint venture with an Italian company for manufacture and marketing of premium cotton shirting fabric and a Rs 100-crore investment to expand worsted suiting capacities. The 50:50 joint venture is with Cotonificio Honegger S.p.A., part of Gruppo Zambaiti, a supplier to leading premium shirt brands worldwide. The joint venture will invest Rs 180 crore in setting up a plant with a shirting fabric capacity of 10.5 million meters per annum. The plant will be located either in Maharashtra, Gujarat or Karnataka, said Mr Gautam Hari Singhania, Chairman, Raymond Ltd. This joint venture is part of Raymond's strategy to expand its product portfolio by entering into cotton fabrics, he said. This facility will cater to the international markets at the higher end and Raymond's requirements of fine shirting fabrics for its premium brands Manzoni, Park Avenue and ColorPlus. In this project, Raymond's debt-equity ratio will be 1.5:1.The joint venture will be headed by Mr Robert Lobo, who was earlier Chief Executive Officer of Morarjee Brembana. Raymond is also planning to invest Rs 100 crore to expand its worsted suiting capacities. It will raise capacity by three million metres per annum. This will augment its existing capacity of 24 million metres annually. Raymond will thus cater to the increasing demand for its high quality wool-based suiting both in the international and domestic markets. The investment will be funded by internal accruals. Commenting on this development, Mr Singhania said, "The textile scenario internationally is looking extremely positive for Indian companies. There are significant opportunities for Indian companies to partner with international companies to exploit opportunities in the global market. Our 50:50 joint venture with the Italian company is the first step towards creating partnerships which can establish Raymond strongly in the international arena." Both facilities will be operational by March 31, 2006. Shares of Raymond ended Rs 6.5 higher on the Bombay Stock Exchange today at Rs 319.90.
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