INDIA: Indo-French JV to establish weaving plant

By just-style.com | 28 March 2006

Fabric producers Banswara Syntex and Carreman Michel Thierry Group have joined forces to establish a weaving plant in the western Indian state of Rajasthan.

The 50/50 joint venture, which will be called Carreman Fabrics India Ltd, is set to target the US, UK and European markets with Lycra-based fabrics, the companies said.

The INR367.5m (US$8.2m) plant will initially produce 4m metres of fabric a year. Both companies will contribute INR62m to equity, with the alliance borrowing an extra INR195m.

France-based Carreman, which already has plants in Romania and France, will make a separate INR29.5m payment later and will subscribe to 3% non-redeemable preference shares for INR19m.

India-based Banswara's chairman R L Toshniwal said he expected the joint venture to post sales of INR500m-600m in its first year.

Carreman Michel Thierry director Eric Baisse said the company had been attracted to India by the country's relatively low production costs.

Sectors: Fibres & fabrics, Manufacturing

Companies: Lycra