| The 50:50 JV, incorporated in India as Raymond UCO Denim, will be engaged in the business of manufacturing and marketing of denim fabrics. |
| The company has headquarters in Belgium and production facilities in the US, Europe and Asia. With a combined fabric capacity of 80 mn metres per annum and a vast marketing network, the JV will be new global denim powerhouse and valued at euro 200 million. |
| Raymond transferred its denim business while UCO NV transferred its stake in its denim subsidiary located in Belgium, which holds the denim companies of UCO NV, to the joint venture company to be managed by a board of directors with three directors from each side. |
| Gautam Singhania, chairman and MD, Raymond, said, "This joint venture brings together the experience and expertise of two major denim manufacturing companies in the world. UCO NV is a world class company and the most ideal partner to take our denim business to greater heights." |
| UCO NV produces and sells a diversified collection of denim for leisure wear, focusing on innovative high value added fabrics. UCO NV has a 70 per cent share in colour denim segment in Europe. |
| Alain Vermeersch, MD of UCO textiles, would be the group CEO of the JV company, Singhania said. "We are looking to a sales revenue of Rs 1200 crore in the first year", Pradeep Bhandari, group president, Raymond said. |
| The global demand for denim is estimated at around 5.5bn metres. The size of the global denim fabrics industry in 2005 was valued at $ 10 billion. |
| The growth in the denim and denim jeans industry is driven by population growth; spending power and the fact that, jeans has been a staple wear for the world consumer. Asia, America and Europe account for 97 per cent of total world market. |
| Together, Raymond UCO will increase the flexibility of operations and servicing the global sourcing requirements. |
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