Vardhman Textiles has signed a joint venture agreement on 24 March 2008 with American & Efird Inc.(A&E), a subsidiary of Ruddick Corporation, USA to manufacture, distribute and sell Sewing Thread for industrial and consumer markets in India and for exports to other countries.
The joint venture will be implemented in Vardhman Yarns and Threads, a subsidiary company of Vardhman Textiles. This joint venture Agreement envisages A&E's participation in equity, initially to the extent of 35% of paid-up equity share capital with an option to increase its share in equity up to 49% within the next five years. The joint venture will come into effect after the board of VYTL allots shares to A&E and to the company after fulfillment of specified conditions and completion of obligations by the parties to the agreement. The company expect that to happen some time during April 2008.
The company made this announcement after the trading hours on Monday, 24 March 2008. The management expects that this strategic alliance will help the thread business of Vardhman by integrating with the global operations of A&E and its subsidiaries.
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