Vardhman Textiles Limited has entered into a Joint Venture agreement with Japan based Nisshinbo Textiles Inc. by the name of Vardhman Nisshinbo Garments Company Limited. The equity participation of Vardhman and Nisshinbo would be in the ratio of 51:49. Nisshinbo is a world class textile manufacturer with comprehensive operations including spinning, weaving, knitting, finishing and sewing.
The total manufacturing capacity of the project shall be about 1.8 million pieces per annum. This venture of Vardhman is a step towards a gradual integration of our Textile Value Chain to meet the clothing requirements of the higher end customers in domestic and international market. The estimated capital cost of the project is Rs. 30 crores which will be financed partly from equity contribution by joint venture partners and partly by debt.
The joint venture company will supply majority of its production for international markets through Nisshinbo. The Joint Venture Company shall also manufacture shirts for supply to the domestic brands. Nisshinbo shall also provide technical assistance for setting up the facilities and for the manufacturing operations.
The Foundation Stone of the project was laid on 21st August, 2009 at Phase D-95, Phase VIII, Focal Point, Ludhiana. Mr. Takeo Shimura, Vice President, Mr. Masatsugu Ohno, Manager, Textile Fabrics Division and Mr. Masami Tsuji, Manager, Global Operation Section from Nisshinbo Textiles Inc., Japan specially came to attend the ceremony.
The Project will provide direct employment to about 600 people and is likely to commence production in July/August 2010. A team of technical persons shall go to Japan and China during January to May 2010 for training.