Sintex Industries set to target leading mens shirting brands in the U.K. & U.S.A.

Sintex Industries Ltd has announced that the Company has entered into an agreement with a reputed U.K. based company for its textile business. The understanding entails assistance in designing, which includes colours, structures and finishes as well as packing products and niche client identification. The U.K. based entity will also train the Company´s employees to work with these fabrics and its marketing staff to market these products to several leading brands.

This UK based company will give the Company 3,000 designs per quarter. Through this agreement, the Company believes it can sell about 1 million meters of fabric in the first year and this volume can be expected to go up to four million meters of fabric in the coming three years. The contract entails Product designing and Product Sales for a three year period and is then renewable for another five years.

The agreement will enable the Company to target over 25 high end men shirting brands for UK and US markets, which include Abercromie & Fitch, Ann Taylor, Thomas Pink, etc.

The Company already has one joint venture with M/s Canclini Tessile S.p.a. of Italy which prepares 9,000 designs in each of four different seasons. This agreement entails Technology transfer, Trend collection & Development, Training, Identification of clients and joint marketing of products. The Company markets around 25% of its production with the help of these designs and its realization for collection sales is significantly higher than other sales.

The Company already has a very strong customer base both in India and internationally for its textile products. These include Arrow, Van Heusen, Louis Phillip, Zodiac, Raymond, Wills-ITC etc., amongst domestic brands and Marks & Spencer, Nike, Tommy Hilfiger, Gap, ANN Taylor, Esprit and Guess etc., amongst International brands.

Source : Equity Bulls

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