The Hindu Business Line : Textile firms leverage Italian tie-ups to move up value chain

New Delhi, July 17 Indian textile players are trying to move up the value chain by forging tie-ups with Italian brands and companies to secure easier access high-end market segments of the EU and the US, where China does not have a significant presence and buyers are less price-sensitive.

These include Morarjee Textiles, Himatsingka Seide and Suryajyoti Spinning Mills.

Italian companies are, in turn, increasingly aligning with Indian firms to grab a piece of the Indian domestic market, with Grotto SpA and Diesel tying up with Raymond and Arvind Mills respectively to tap the domestic high-value apparel market.

Sourcing from India

Italian firms such as Carrera and Benetton SpA have also stepped up sourcing of high-value items from India for the European fashion market, according to industry players.

Himatsingka Seide acquired 70 per cent equity stake in Italian brand Giuseppe Bellora SpA earlier this year, in line with the company’s strategy to acquire high-end distribution networks in the global home textile segment.

Bellora, a pan-European luxury brand in the bed linen segment, has a presence in upmarket departmental stores including Harrods in London and La Rinascente in Milan and also has exclusive stores across Europe.

The Mumbai-based Morarjee Textiles has acquired 67 per cent stake in Italian apparel brand Men’s Club SpA.

Suryajyoti Spinning Mills, a Hyderabad-based yarn manufacturer has, kick-started a technical collaboration with Italian firm Pangea SRL to set up a specialty fabric facility.

Raymond has struck a joint venture with Grotto SpA to bring the GAS apparel and accessories brand to India.

Arvind Mills has announced a tie-up to bring Diesel, the Italian luxury denim and casual fashion brand, to the country.

Among Italian players planning to use India as a sourcing hub, fashion garment manufacturing major Carrera has already firmed up plans to invest nearly Rs 1,200 crore in various projects.

Benetton, in collaboration with Benetton Holdings NV of the Netherlands, is also planning to set up an integrated manufacturing unit in the country for producing knit fabric products.