Avgol invests in Indian business; relocates SMMS line

“This strategic move positions our line rapidly at the heart of the local market,” said Avgol CEO Shachar Rachim. “There is a huge domestic demand for hygiene products in India and across the south east Asia region, but there are heavy tariffs on importing materials. The demand is already at 165 per cent against local supply capacity. Our projections show that through regional organic growth, improved promotion of feminine health, and increased awareness of hygiene because of the coronavirus pandemic, demand is only going to increase.”

Avgol leads the global hygiene market with the most comprehensive range of ultra-lightweight spun-melt nonwoven fabrics. “Serving the baby diaper, adult incontinence and feminine hygiene markets, this move enables us to deliver an improved local service across the entire area,” said Rachim.

He added that the investment in new production capacity would also support further product development from Avgol, under its innovative Forward Innovative Thinking (FIT) strategy. The research and development programme creates value, flexibility and sustainability for brands and manufacturers from the outset.

“As a highly innovative and responsive supplier, we are continually investing in R&D to ensure we are developing the best products to meet demand,” said Rachim. “With this relocation, we are ensuring that we can increase nonwoven fabric production to both meet the immediate, obvious local need and also be best-placed to serve the increasing future needs of the Indian market.”

Relocation of the Avgol Line 5 production from Barkan, Israel, to India is underway now, with installation expected to be completed by end of 2021.

Fibre2Fashion News Desk (RKS)