Financial Daily from THE HINDU group of publications
Saturday, Nov 26, 2005
Financial Daily from THE HINDU group of publications Saturday, Nov 26, 2005 |
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Corporate
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Alliances & Joint Ventures Oswal Group ties up with Austria's Hammerle Our Bureau
New Delhi , Nov. 25 VARDHMAN Polytex, the flagship of Oswal Group, has announced a joint venture with Austria's FM Hammerle (FMH) to set up a Rs 200-crore greenfield yarn dyed shirting (YDS) fabric facility. ``This is a three-pronged tie-up, as per which Hammerle will provide technical, design, financial and marketing support," Mr Ashok Oswal, Chairman and Managing Director, Oswal group said. Out of the total project cost of Rs 200 crore, Rs 80 crore would be equity and Rs 120 crore would be debt, Mr Oswal said adding that Hammerle would pick up 30 per cent equity in the company while 70 per cent would be held by Vardhman Polytex initially. The joint venture is targeting a turnover of Rs 70 crore in its first year of operations, he said adding that the group was seeking to achieve Rs 500 crore by fiscal end. Mr Oswal said the new facility would be set up in Kolhapur for which the land had already been acquired from the Maharashtra State Industrial Corporation. The new facility would have an installed capacity of 12 million metres per annum, out of which 25-30 per cent would be bought back by FMH for its customers in the US, Europe and North Africa. With India importing 100 million metres of YDS fabric, the company is eyeing both the domestic market and neighbouring countries such as Bangladesh and Sri Lanka, he said. Oswal Group is investing another Rs 50 crore to expand the spindle capacity of its flagship from 1,08,000 to 150,000.
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