Cone Mills Offers To Pick 8% In Ashima Syntex
Group Ashima, the integrated cotton textiles group, has entered into a strategic alliance with denim manufacturer Cone Mills Corporation of the US.
According to the agreements signed by the two companies at Ahmedabad, Cone will pick up an eight per cent stake in Ashima Syntex Ltd (ASL), subject to the approval from the Foreign Investment Promotion Board (FIPB) and will act as co-promoter of the company.
The pact will aid Ashima in various aspects of its business including future expansions, product design and development, employee training, process automation and quality monitoring.
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Cone will certify fabric produced by ASL which will be brought in line with its own quality standards, said a company release.
Under a name licence agreement, ASL's products will be marketed in domestic and foreign markets as `Ashima-Cone' products.
Cone will distribute these in markets outside India through distribution channels of a separate division, Cone Asia.
The various agreements were signed by Chintan Parikh, chief executive officer (CEO) of Group Ashima and Patrick Danahy, CEO, Cone Mills. Cone will be represented on Ashima's board of directors by one non-executive position in addition to a team of experts to be stationed at Ashima. The arrangement with Cone will enhance Ashima's customer profile and increase the percentage of value-added products in its sales configuration, the release added.