Article d'une entreprise indienne

Siyaram, Lenzing tie up to spin ‘Modal’ fabrics

SABRINATH M

TIMES NEWS NETWORK

[ FRIDAY, AUGUST 09, 2002  07:24:35 AM]

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MUMBAI: Siyaram Silk Mills, the Mumbai-based textile company, has entered into a strategic alliance with Austrian fibre producer Lenzing to manufacture and market fabrics in India. Under an exclusive arrangement, Siyaram will produce fabrics made out of Lenzing’s new-age fibre brand `Modal’ at its plant in Silvassa, Gujarat.
Lenzing is also providing technology to manufacture fabrics which will hit the market in two months. Siyaram has started conducting trial runs for the product in Mumbai. Initially, the company will produce trouser fabrics which will later be extended to other categories like shirts. The `Modal’ fabric will be marketed in metros and mini metros initially. `Modal’ is a modified viscose fibre, made exclusively from beach wood pulp.
Arvind Poddar, joint managing director, Siyaram Silk Mills, told ET that the company will initially produce 1.5 lakh metres per month. Imported machines were recently installed at the Silvassa plant to suit the requirements of `Modal’ fibre. Siyaram has plants in two locations in Maharashtra, namely Tarapur and Murbad, with a total capacity to produce 23 lakh metres of fabrics per month. Siyaram will import the `Modal’ fibre into India which will be converted into fabrics.
Industry sources said that `Modal’ is being perceived as a replacement for polynosic (generic name like polyester) fibres which were popular in India till a few months ago. The Japanese company, which made polynosic fibre, has shut operations due to environmental issues, forcing garment producers to look for alternatives. Lenzing bought `Modal’ into India a year ago. Since then, garment companies are using the brand to bring more stretchability to the product. Indian textile companies are gearing up to counter competition from imports once the quotas are phased out in ’04. Sources said that Siyaram’s move to manufacture `Modal’ is an attempt in this direction.
The company has also recently introduced a new fabric brand called `Body Care’ in the domestic market. In a similar case, Reliance Industries has entered into an exclusive agreement with US giant to market the latter’s `Lycra’ fabric in India.
The Poddar family-promoted company reported a lower sales of Rs 326.9 crore during the year ended March 31, ’02 as against Rs 361.9 crore during the last year, due to recession in the textile industry. Lenzing, which has plants located in Austria, US and the Far East, has a turnover of close to Rs 3,000 crore.