Austria-based fibre maker Lenzing Group is looking to strengthen its sales and marketing operations in India and may set up production there, media reports said.

Lenzing, a leader in cellulose fibre production, would be a direct rival to Indian fibre giant Grasim Industries, should it begin manufacturing there.

Lenzing is reportedly due to open its first office in Mumbai during the first half of 2006, and is said to eye the market with much optimism, especially following the end of global textile quotas.

The company broke into the Chinese market in 1994 in its first large-scale Asian expansion.