Dec 15, Colombo: Sri Lanka's leader in apparel manufacturing Brandix and Tefron, a seamless fabric manufacturer based in Israel have teamed up to form a joint venture.
Tefron, which is expanding its business in Asia, has announced that the company has signed a memorandum of understanding (MoU) with Brandix to set up a joint company in the seamless fabric market, which is estimated at $2 billion a year.
The joint company will have 50 knitting machines.
The final agreement subject to approval by Tefron's financing banks will be signed within three months. However, according to a report in Globes, Israeli business daily, Tefron has not disclosed financial details of the investment or the revenue potential of the company to be set up.
"This is an excellent tie-up between industrial capacity on the one hand and technological leadership on the other," Tefron CEO Gil Shimon has said.
Brandix, being the pioneer of the concept of 'total solutions' in Sri Lanka's apparel sector, is a leader in apparel manufacture, and a global leader in eco-friendly manufacturing operations. Brandix manufactures for leading international brands such as Victoria's Secret, Gap and Marks & Spencer.
Tefron's products include intimate apparels and extremity care products. It also provides sportswear and swimwear products. It markets its products through many brands such as Victoria's Secret, Gap and Banana Republic.
Tefron is traded on the Tel Aviv Stock Exchange at a market cap of NIS 39 million (US$ 11 million).