Two of India's leading textile firms, Morarjee Brembana Ltd and ColorPlus Fashions, have formed a unique alliance to manufacture and market fabrics in a move that could be copied around the world.

Morarjee Brembana has begun manufacturing fabrics produced with state-of-the-art technology that allows it to produce an exclusive range of shirt fabrics. But instead of selling it under its own brand name, the fabrics are being marketed under the ColorPlus-Morarjee Brembana name.

Industry sources say the alliance has been such a success that rival companies are expected to form similar partnerships soon.

"We are trying out a new business model," explained Robert Lobo, chief executive officer of Morarjee Brembana. "This could be the first such venture in India where a fabric supplier teamed up with a garment company to promote a product."