Japan's Nisshinbo Textiles has announced it will jointly establish a sewing plant for dress shirts in India with major Indian spinning company Vardhman.

Nisshinbo said it had reached a basic agreement with Vardhman to start production in the second half of next year.

Vardhman will hold 51% of the shares in the new joint venture according to Nisshinbo.

"We are strengthening are global production and sales structure for shirts, and this establishment of an Indian joint venture is part of those plans." Nisshinbo said in a statement.

The company already has its own shirt plants in China and Indonesia.

By Michael Fitzpatrick.