Raymond, on 17 February 2005, 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 Spa, part of Gruppo Zambaiti, a supplier to leading premium shirt brands worldwide. The project is part of Raymonds strategy to expand its product portfolio to cotton fabrics.

The joint venture will invest Rs.180 crore (debt-equity, 3:2) in setting up a plant with a shirting fabric capacity of 10.5 million metres per annum. The plant will be located either in Maharashtra, Gujarat or Karnataka

This facility will cater to the high-end international markets at the higher end and Raymond's requirements of fine shirting fabrics for its premium brands Manzoni, Park Avenue and ColorPlus.

Raymonds is also planning to invest Rs.100 crore to expand its worsted suiting capacities. It will raise its capacity by 3 million metres per annum, taking the total capacity to 24 million metres annually. This investment will be financed through internal accruals.

Both the projects are due for commission by 31 March 2006.