Sangam India to outsource polyester

MUMBAI: Rajasthan-based textile conglomerate 'Sangam India' today said it will supply polyester to Portugal-based Riopele Texteis SA for a period of one year.

Sangam India has entered into a strategic supply agreement with Riopele Texteis to outsource high value added 'polyester viscose bi-stretch lycra fabrics' for a period of one year, to be renewed mutually on the basis of performance, Sangam India said in a communique to the Bombay Stock Exchange.

The domestic firm, however, did not provide any financial details of the agreement.

"This tie-up will help us to get the technical know-how and the latest trend in designing from the Riopele and in turn give us an opportunity to supply high value added polyester. Going forward, we are targeting around 10-15 per cent revenue of this fabrics division through the tie-up," Sangam India Chairman R P Soni said.

As per the agreement Sangam would outsource technical expertise and designing pattern from Riopele Texteis.

"This is the first step towards our vision to expand in the global markets with high value added product such as poly-viscose bi-stretch fabrics segment," Soni said while explaining the rationale behind the tie-up.

Riopele Texteis has an annual turnover of Euro 64 million and is one of the largest manufacturer of high value added polyester-viscose bi-stretch yarns and fabrics. The Portuguese company has composite production facility and is a leading supplier to various retail chains in Europe and the US.

Shares of the company were last trading at Rs 65.25, down 1.73 per cent on the BSE.