Spentex Industries Limited has bought the assets of Uzbekistan's Farg'ona Ip-Gazlama Ishlab Chiqarish to establish a processing venture for dyeing finished fabric.

The venture, set up through Spentex's Dutch subsidiary, will be in technical and marketing collaboration with British Millerain.

The process house at Mergalan factory in Uzbekistan will dye finished fabric for use in workwear, outdoor fabrics, military use, institutional uniforms/wears, industrial fabrics and home furnishing fabrics.

Spentex chose the Uzbekistan business because of its proximity to Eastern European markets, the low cost of operations and its potential for the value chain.

The new venture will have a capacity of 30,000 metres of per day with an option to increase this later.

It will be entitled to all tax benefits/concessions from Uzbekistan's government. as well as other advantages.

Michael Miller, managing director of British Millerain UK, said: "The technical and marketing collaboration with Spentex will open up new vistas for a wide range of products and market presence."

Currently, Spentex Industries has eight plants and a total production capacity of 350,000 spindles in India and 220,000 spindles in Uzbekistan along with 236 airjet weaving looms. It has recently expanded the capacity of its plant at Baramati and Sholapur.