The Hindu Business Line : Birla Transasia eyes joint ventures for tech know-how

In a bid to come out of trying times, machine-made carpet manufacturer Birla Transasia Carpets Ltd is looking at joint ventures for technical know-how and is also planning to lift exports.

In August, the company entered into a 50:50 joint venture with De Poortere Deco of Belgium, a manufacturer of home decoration textiles, to set up a new outfit styled Birla DP.

De Poortere Deco will transfer its specially designed looms and spinning units to Birla DP and Birla Transasia will manufacture carpets for De Poortere Deco. "The machines will come in a phased manner; six machines should be with us by January. In sum, about 25-30 machines and spinning units will be transferred," said Mr Manish Malani, CEO, Birla Transasia Carpets.

Outdoor carpeting

The company is looking to form a second joint venture to cater to the outdoor carpeting segment.

"For outdoor carpeting, we are in talks with different companies abroad. There is a huge market for outdoor carpets in India, as people don't have enough water to maintain a proper lawn. And now all sports are being played on artificial grass. With the 2010 Commonwealth Games coming up, there is a huge potential for us," said Mr Malani.

In the last six to seven years, the company's turnover has dropped from Rs 20-25 crore per annum to Rs 3.5 crore, and it expects to double it by next year to around Rs 7 crore.

Currently, capacity utilisation is placed at about 15 per cent.

"We are also looking to increase our exports. We have just bagged an order from a company in Sweden and are in talks with some New Zealand companies as well," said Mr Malani.

Domestic customers of Birla Transasia Carpets include Sahara Airlines, ICICI Ltd, State Bank of India and the Taj Group of Hotels.

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