Arvind forms joint venture with German co for glass fabrics

Date: 16 December 2011
Source: Fiber Glass Industries Inc./thehindubusinessline.com

Date: 16 December 2011

Textile major Arvind Ltd has announced the formation of a joint venture with the Germany-based PD Fiber Glass Group for the manufacture of glass fabrics in India with an investment of Rs 80 crore over the next five years.

Arvind Ltd is the flagship enterprise of the $1-billion Lalbhai Group.



The venture will cater to the requirements of industries such as automobiles and transportation, wind energy, aerospace, shipbuilding and infrastructure, which are all growth drivers for glass fabric industry, said Mr Sanjay Lalbhai, Chairman and Managing Director, and Mr Punit Lalbhai, Executive Director (New Initiatives), Arvind Ltd, at a press conference here.



The venture, to be known as Arvind PD Glass Composites Pvt Ltd, will have a 51:49 equity participation from Arvind and PD Group respectively, for a new factory to be set up at Santej in Ahmedabad district. It will have a capacity to manufacture 30,000 tonnes per annum of glass fabrics in five years. It is expected to start production in March 2012 and would export 70 per cent of its products initially.



The current market size of glass and technical-industrial textiles in India is about 60,000 tonnes annually, worth nearly Rs 500-700 crore.



The venture is projected to achieve revenues of Rs 250 crore (35.831.797 €) after the first phase of investments in three years and Rs 500 crore (71.663.594 €) in five years, they added. “We believe the coming years will see the global glass composite industry grow at a staggering 25 per cent every year.”



Targeting a turnover of $1 billion in the next 10 to 15 years in industrial and technical textiles, the Lalbhais said, Arvind Ltd has entered this venture with these new growth drivers, as part of extension of their product line and innovating in the field of advanced textiles.



In the first year of operation, 2012, the company expected revenues of Rs 150 (21.499.078 €) crore, with profit margins being 15-20 per cent.



Mr Stefan Preiss-Daimler, Managing Director, PG Management Group, said his company entered India nearly 20 years ago. It will now bring knowhow to a joint venture in which Arvind’s expertise in weaving technology and PD Group’s in glass fibre would complement each other. The new facility will manufacture woven, bi-axial and multi-axial glass fabrics along with stitched and chopped mat-glass fabrics.

600450 Arvind forms joint venture with German co for glass fabrics glassonweb.com

See more news about:

Others also read

DALLAS, Texas, December 22, 2011 /PRNewswire/ --ReportsnReports adds new market research report 'Solar Photovoltaic (PV) Power - Global Market Size, Installation Prices, Module Market Shares, Market Segmentation, Regulations and Key Country Analysis to 2020' to its store.
Proprietary laminate windows collect, store energy; convert it to electricityRIVIERA BEACH, FL – An innovative new patented technology transforms office building windows into "solar farms" and allows these structures to reuse collected energy and become self-sufficient in the event of a power outage.
The University of Minnesota's historic Folwell Hall completed three years of extensive renovation, just time for the 2011 academic year.
Michael Gai has been named Vice President of Operations at Glass Doctor, following the recent promotion of Mark Liston to President.
COLUMBUS, Ohio – Dec. 19, 2011 – Safelite AutoGlass®, the nation’s largest provider of vehicle glass repair and replacement services with a fleet of 6,000, announced it will transition to Ford®.
The renewal process for AAMA Corporate Members is now open. AAMA Corporate Membership is available to businesses involved in the manufacture, sale or service of fenestration products and is renewed on an annual basis.

Add new comment