Financial Daily from THE HINDU group of publications
Thursday, Feb 16, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 16, 2006 |
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Corporate
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Alliances & Joint Ventures Raymond plans denim tie-up with Belgium co Our Bureau
Mumbai , Feb 15 RAYMOND Ltd plans to merge its denim business with that of UCO NV of Belgium. The company's board has approved a memorandum of understanding (MoU) with the Belgium company, to create a global denim company. The proposed joint venture will own the denim business of Raymond (40 million metres) and denim/flat business of UCO (40 million metres), with equal equity for both. "The joint venture will create a transcontinental entity with manufacturing facilities across three continents and a global marketing network," Raymond said in a news release. Raymond's denim division has an annual capacity of 30 million metres of high-end Ring denim and will be enhanced to 40 million metres by March 2006. The denim division achieved a turnover of Rs 210 crore in the first nine months of 2005-06, an increase of 28 per cent. With expansion at Yavatmal in Maharashtra and new capacity in Romania, the joint venture is expected to generate turnover of more than Rs 1,100 crore in the first year of operation. "This proposed joint venture is in line with Raymond's strategy to forge alliances with leading players to serve a diverse set of customers across the world," the release said, quoting Mr Gautam Hari Singhania, Chairman and Managing Director of the company. Shares of Raymond moved down by Rs 2.45 to Rs 410.05 in Wednesday's trade on BSE.
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