The Hindu Business Line : Raymond, UCO NV form denim joint venture

VENTURE PLANS: Mr Gautam Singhania (left), Chairman & Managing Director, Raymond Ltd, with Mr Alain Vermeersch, Group CEO, Raymond UCO Denim Pvt Ltd, at a press conference in Mumbai on Tuesday. - Paul Noronha

Mumbai , Aug. 8

Raymond Ltd has joined hands with UCO NV of Belgium to form an international denim manufacturing company.

The 50:50 joint venture in India called Raymond UCO Denim Private Ltd will have its executive headquarters in Belgium.

With manufacturing facilities in four countries — the US, Belgium, Romania and India — the company will have a combined fabric capacity of 80 million metres per annum.

As per the agreement, Raymond Ltd has transferred its denim business to the joint venture company, while UCO NV has transferred its stake in its denim subsidiary.

The company's board will have equal representation from both partners.

Announcing the company's formation, Mr Gautam Singhania, Chairman and Managing Director, Raymond Ltd, said, "This joint venture brings together the experience and expertise of two major denim manufacturing companies in the world. We will offer a completely integrated solution that no other company can offer."

Mr Philippe Vlerick, Chairman, UCO NV, said, "We are privileged to partner with Raymond Ltd to form the joint venture. We believe that the brand equity of the individual brands will give the joint venture a strong position and craft and enviable place in the global denim industry."

While Raymond is transferring its denim plant at Yavatmal in Maharashtra with a capacity of 40 million meters per day, UCO NV — with a 70 per cent market share for colour denim in Europe — will transfer four manufacturing facilities to the new company.

Shares of Raymond rose by 1.7 per cent to close at Rs 377.35 on the BSE.

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