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.