Raymond Limited has finnalised a Rs280-crore investment plan, to invest in a new joint venture and capacity expansion. It has announced a 50:50 joint venture with Italy''s Cotonificio Honegger SpA, to manufacture and market high value-added cotton shirting fabrics. The proposed plant will have a capacity of 10.5-million-metres and cost Rs180 crore.

Gautam Hari Singhania, chairman and managing director, Raymond Limited, said, "Our 50:50 joint venture with the Italian company is the first step towards creating partnerships which can establish Raymond strongly in the international arena." The joint venture augurs a significant step for the company to exploit impending opportunities in the international market.

The new facility will cater to the high-end export markets and also to the company''s current requirements of fine shirting fabrics for its premium brands Manzoni, Park Avenue and ColorPlus. Gruppo Zambaiti is one of the top three Italian high fashion cotton textile groups, with strengths in design and development. With this joint venture, Raymond has expanded its product portfolio entering into cotton fabrics. Raymond will also invest Rs100 crore to set up a new facility in India with a capacity of 3-million-metre per annum to augment its existing capacity of 24-million metre.

The two plants to manufacture shirt fabric and worsted fabric are expected to go on stream by March 2006. This would enable Raymond to cater to the increasing demand for its high quality wool-based suiting both in the international and domestic markets.

Pradeep Bhandari, deputy group president and wholetime director, Raymond Limited, adds, "The demand for worsted fabric continues to be buoyant this year and there are significant enquiries from international customers. Augmenting of capacity will help us in expanding our share in the international market."