Raymond & UCO NV's JV to influence three continents
16 Feb '06
2 min read
Raymond Limited and UCO NV of Belgium have inked a Memorandum of Understanding (MoU) to enter into a Joint Venture (JV) merging denim businesses of Raymond and UCO.
The Joint Venture Company would combine Raymond denim business of 40 million meters and denim/flat business of UCO of 40 million meters with equity of 50:50.
Belgian textile group UCO, manufactures denim and flats with sales of 75 percent, producing variety of denim and flat fabric for leisure wear.
UCO's denim turnover in 2005 was Euro 104 million (Rs. 5.5 billion). Its present annual capacity is more than 30 million meters and plans to establish a new plant in Romania to be commissioned by May 2006
Raymond's denim division has an annual capacity of 30 million meters and will be enhanced to 40 million meters by March 2006.
The turnover of denim business was Rs2.10 billion in first nine months of 2005-06, registering an increase of 28 percent year on year.
Joint Venture Company will be able to service its customers anywhere in the world with combined manufacturing capacity of 80 million meters and presence in 3 continents (Europe, USA & Asia)
No other denim company in the world has such a worldwide presence.
Benefits of jointly marketing, manufacturing, product development, product mix, sourcing and a flexible supply chain, are a positive factor of this JV.
Turnover of this JV is set to cross Rs.1100 crores in the very first year of its operation.
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