Mumbai-based Siyaram Silk Mills has signed a strategic alliance with Austrian fibre producer Lenzing to manufacture and market Modal fabrics in India.

Under the exclusive arrangement, Lenzing is also providing technology to manufacture new fabrics being launched in the next two months.

Siyaram will import the modified viscose fibre into India. It will initially produce trouser fabrics in, and will then move into other categories such as shirts.

Arvind Poddar, joint managing director, Siyaram Silk Mills, told the Economic Times that the company will initially produce 1.5 lakh metres per month. Imported machines have already been installed at its Silvassa plant to process the Modal fibre.

Modal is seen as a replacement for polynosic fibres, which are no longer produced in India due to "environmental issues."