Raymond has announced a joint venture (JV) with Lanificio Fedora, Italy, a leading woollen fabric manufacturer. Raymond will transfer the existing carded woollen unit, making largely blankets and shawls, at Jalgaon to the new plant. The cost of the total project, with capacity addition, is Rs 40 crore and both parties will take a 50:50 stake in the JV.Gautam Singhania, chairman & managing director, of Raymond said, "At Raymond, we have always believed in bringing the best practices from across the world. With this JV, we will incorporate the technical expertise and industry experience of our partners within our existing business to offer world-class products for both the domestic and international markets."The unit had a turnover of Rs 170 million last year and a low capacity utilisation due to severe competition from cheaper acrylic based products. Apart from the access to the technical expertise from Lanificio Fedora, this new partnership will see the enhancement of the current manufacturing capacity from 15 lakh metres per annum to 25 lakh metres per annum in the first phase. In addition, this JV will leverage the strengths of the brands within the domestic and international markets. The JV will have a product mix that includes blankets, shawls and fancy woollen jacketing and expects to export around two thirds of its output.
