Raymond Expands Capacity Establishes Joint Venture

Raymond Expands Capacity,Establishes Joint Venture
Raymond Ltd., India, has announced plans to invest 1 billion Indian rupees (about $23 million) to expand the annual denim manufacturing capacity at its Yavtamal plant by 10 million meters to reach 40 million meters.The company said the project is a response to the opportunities opened up by the elimination of textile quotas. As part of the expansion project, Raymond has commissioned a rope indigo dyeing plant, which will enable the company to reach the additional capacity by January 2006.“I envision exporting most of our denim production as high-valueadded jeans wear to the best labels worldwide,”said Gautam Hari Singhania, chairman and managing director.“As a step towards achieving this, Raymond has already set up EverBlue Apparel Ltd., a 10,000 piece-a-day, state-of-the-art jeans wear facility at the apparel park in Bangalore.”In related news, as part of its strategy to expand its product portfolio to include cotton fabrics, Raymond also has signed a deal worth 2 billion rupees with Cotonificio Honegger S.p.A., a division of Italy-based Gruppo Zambaiti, to set up a greenfield plant in India to manufacture fine cotton and cotton linen shirting fabric.Raymond said the new facility, with a capacity of 11.5 million meters, will cater to middle- to upper-end brands in the international markets. In addition to the equity support, Gruppo Zambaiti will bring to the table technology and design expertise.
July/August 2005