Oswal Group flagship Vardhman Polytex is setting up a joint-venture dyed shirting fabric facility with Austria-based FM Hammerle.

The facility, which is costing INR2bn (US$43.7m), looks set to make turnover of INR700m during its first year of operating.

Vardhman will hold a 70 per cent share in the venture - which will be based in Kolhapur in India's Maharashtra state - while Hammerle will have 30 per cent equity.

The facility will boast an installed capacity of 12m metres annually.