Textile makers BSL and Carreman Michel Thierry in 50:50 JV
Mumbai, Mar 28 (UNI) Textile manufacturer Banswara Syntex Ltd (BSL) today announced a 50:50 joint venture with Carreman Michel Thierry Group (CMTG) of France to set up a plant at Banswara in Rajasthan for weaving and exporting high-value lycra-based designer fabrics, especialy aimed at women.
The joint venture project will invest Rs 36.75 crore, of which plant&machinery accounts for Rs 28.26 crore. This is being funded by the two promoters equity of Rs 12.4 crore.
CMTG is also subscribing to 3 per cent non-redeemable preference shares of Rs 1.9 crore and extending deferred payment credit of Rs 2.95 crore, apart from acquiring 50 per cent equity.
CMTG will provide technology for weaving and designing the fabric, while the yarn will be sourced from BSL. Dyeing and processing of the fabric will also be done at BSL under the supervision of CMTG's technicians.
''CMTG has been procuring yarn from BSL for the last eight years and both the joint venture partners enjoy sound business relations which helped cement the joint venture partnership,'' said R L Toshniwal, Chairman, Banswara Suytex.
''Till such time the company has its own processing house, Banswara Syntex would process the fabric woven by the joint venture, according to the quality standards fixed by Carreman, making it a win-win situation for both,'' Mr Toshniwal said.
The JV will produce four million metres of fabric per year.
The project is expected to go on stream gradually and attain commercial production by mid-April 2006.
Banswara also has a readymade garments facility with an installed capacity to produce 75,000 trousers at Daman in Gujarat.
BSL exports its products to more than 50 countries including US, UK, Canada, Spain, Germany, Italy, France, Phillipines, Turkey and the Gulf countries.
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