Reliance, DuPont lycra deal aborted

Invista planning to go alone by setting up a wholly owned subsidiary in India.

The strategic partnership between Reliance Industries and Invista, formerly known as DuPont Textiles and Interiors, for exclusive distribution of DuPont's Lycra stretch fibres in India is being snapped.

Invista is planning to go it alone by setting up a wholly owned subsidiary in India. A Reliance spokesperson said: "Reliance and DuPont continue to enjoy a good business relationship in the field of polyester since 1980. The earlier agreement for the distribution of Lycra for three years is getting over. After taking over Invista by Koch, Reliance has reviewed (the relationship) and decided not to continue the distribution of Lycra for mutual benefit. Reliance's relationship with DuPont and Invista in other areas continues as it is."

"The future relationship between the companies on the distribution of Lycra fibre is being reviewed. As originally planned, the performance was not up to expectations," Gregory Vas Nunes, vice-president, apparel, Invista (Asia Pacific), told Business Standard.

Lycra is among the world's top 10 textile brands. At the moment, Invista operates as a division of EI DuPont India. Globally, Invista was recently taken over by the US-based Koch Industries.

"The operations in India are under the direct supervision of Invista. We are currently in a transition phase. Our legal team is working on the structure. We expect the whole process to be completed by the yearend," Nunes added.

In 2001, both the companies had announced a distribution tie-up, under which Reliance was to use its countrywide distribution network to develop and promote Lycra in India's textile and garment industries.

"Our operations in India are very small but there is tremendous growth potential for us," Nunes said. He, however, refused to divulge any financial figures.

Invista is an integrated fiber firm and intermediates business with a presence in more than 40 countries. It has six businesses -- apparels, performance fibres, interiors, intermediates, polymers and resins.