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Pioneer Embroideries tie-up for overseas marketing

Our Bureau

MUMBAI, March 24

PIONEER Embroideries Ltd will sign a memorandum of understanding (MoU) for marketing its products abroad through the South Korean company, Moojin International Ltd.

The Korean company plans to market one million mts of garment accessories produced by Pioneer in the US, European and Asian markets, Mr. M. C. Baid, Managing Director of the company told Business Line. Currently, the capacity of Pioneer Embroideries is 3 1.50 million mts per year.

Pioneer, which recorded a turnover of Rs. 28 crores last year, also plans to acquire the ailing Salzer textiles as part of their expansion plans. The company is awaiting SEBI's approval, Mr. Baid said.

The company, which paid a 10 per cent dividend to shareholders in 1999, claims to hold 80 per cent of the country's total production capacity in the embroidery and crochet garment accessories market.

``With developed countries phasing out production of crochet laces and embroidery accessories used in the fashion industry due to increased labour costs, India is emerging as the main sourcing point,'' said Mr. Baid.

The company recently invested Rs. 4.20 crores for installing 364 machines acquired from the US, making their production facility in Silvassa ``one of the largest embroidery plants in the world'', according to Mr. Ajay Agrawal, Financial Consultant of the company.