MUMBAI: In a significant development for the global denim market, two global denim giants, Raymond Ltd. and European major UCO NV, have come together to form a 50:50 joint venture company incorporated as Raymond UCO Denim Pvt. Ltd.

The joint venture will have executive headquarters in Belgium and will make and market denim fabrics.

The entity will have manufacturing facilities spread across three continents — the U.S., Europe and Asia — and have a combined fabric capacity of 80 million metres annually.

As per the agreement, Raymond has transferred its denim business to the joint venture, while UCO has transferred its stake in its denim subsidiary located in Belgium to the joint venture. The board of directors of the joint venture will have equal representation.

According to Philippe Vlerick, Chairman, UCO, "This denim company will have a significant scale of operations; European design skills and a strong back end in integrated manufacturing, to cater to the global requirements of large international brands. We believe that the brand equity of individual brands will give the joint venture a strong position and craft an enviable place in the global denim industry.''

UCO makes and sells a diversified collection of denim for leisure wear. It is a leading denim player in Europe . Raymond has had equal success with a significant share in the premium denim fabric market in India.

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