Textile and apparel major Raymond today announced the formation of a joint venture company with European denim maker UCO NV. The 50:50 JV, incorporated in India as Raymond UCO Denim, will be engaged in the business of manufacturing and marketing of denim fabrics.The company with headquarters in Belgium and production facilities in three continents - the US, Europe and Asia - with a combined fabric capacity of 80 million metres per annum and a vast global marketing network will be new global denim powerhouse.The JV is valued at euro 200 million.Raymond transferred its denim business while UCO NV transferred its stake in its denim subsidary located in Belgium, which holds the denim companies of UCO NV, to the joint venture company to be managed by a board of directors with three directors from each side.Gautam Singhania, chairman and MD, Raymond, said, "This joint venture brings together the experience and expertise of two major denim manufacturing companies in the world. UCO NV is a world class company and the most ideal partner to take our denim business to greater heights." UCO NV produces and sells a diversified collection of denim for leisure wear, focusing on innovative high value added fabrics. UCO NV has a 70% share in colour denim segment in Europe.Alain Vermeersch, MD of UCO textiles would be the group CEO of the JV "We are eyeing a sales revenue of Rs 1200 crore in the first year", Pradeep Bhandari, group president of Raymond, said.
