BackArvind, Japan’s OG Corp set up manufacturing facility near Ahmedabad
The joint ventureArvind OG Nonwovens Pvt. Ltdwill manufacture high-quality non-woven fabrics at an investment of about Rs50 crore
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Ahmedabad: Denim maker Arvind Ltd and Japan’s OG Corporation on Saturday inaugurated manufacturing facilities of their joint venture—Arvind OG Nonwovens Pvt. Ltd—near Ahmedabad, at an investment of about Rs50 crore. Arvind holds 74% equity stake in the JV with the remaining being with OG Corporation.
The joint venture will manufacture high-quality non-woven fabrics using needle-punch technology for bag-house filtration, artificial leather and a variety of other applications, Arvind said in a media announcement on Saturday.
The new venture is targeting a turnover in excess of Rs100 crore in three years, it said.
The new facility is located at Dholka, about 70km from Ahmedabad. Arvind has acquired about 300 acres of land in this area, a part of which is being used for the new manufacturing unit.
In addition to the joint venture, Arvind will expand capacities in this facility and other technologies within the non-woven fabrics space—“an important pillar of Arvind’s technical textiles growth strategy going forward", said the company’s release.
Arvind’s partner in the JV, Japan’s OG Corporation, is engaged in manufacturing and trading specialized materials. The firm reported a turnover of $1.1 billion in 2013. The JV also has a technology alliance with Kureha Corp. of Japan.
Punit Lalbhai, executive director of Arvind and chief executive of the textile firm’s advanced materials division, said that the new venture marks the company’s entry in the non-woven fabrics space and they are looking to grow aggressively this vertical with their Japanese partners. “Beyond this, we are also looking to invest in other technologies and product categories in the non-wovens space, going forward."
H. Machino, managing director of OG Corporation (India) and director, Arvind OG Nonwovens Pvt Ltd, said: “Keeping the future in mind, India is a very important marketplace for OG Corporation. We are therefore delighted to partner with Arvind and establish a non-woven fabrics manufacturing facility in India."
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