Raymond will be sourcing all India variety of khadi from KVIC departmental sales outlets from Delhi and Mumbai, for over the counter sales as well as crafting readymade garments for its apparel brands.
"In line with the Prime Minister's vision, this agreement is going to bridge the urban-rural divide," V K Saxena, KVIC chairman, said here.
Further, this joint initiative will result in an incremental employment of 2.10 lakh man hours for spinners and weavers, he added.
The textile major also plans to bring in the design interventions in the khadi manufacturing clusters across the country along with providing technical expertise.
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As part of the initiative 'Khadi by Raymond' will be available at KVIC outlets and Raymond stores across the country from February 2017, he said.
"With this association, it is our endeavour to position 'Khadi by Raymond' as an Indian fashion fabric globally," Sanjay Behl, CEO of Raymond said.
Raymond has agreed for a guaranteed minimum procurement of khadi and khadi products for five years with primary purchases of muslin cotton and silk.