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NT Bureau
Chennai, May 17:

        RSWM Limited (RSWM), an integrated player in the textiles sector in India, announced that it has acquired a 50 per cent equity stake in SISA of Spain, which will enable the company to considerably expand its footprint in the higher value-added international yarn market.

        The company will now be rechristened as RSWM SISA SA.

        Commenting on the transaction, Riju Jhunjhunwala, joint managing director, RSWM Limited, said: SISA brings with it a specialty and value-added yarn business in the international market, with a strong customer profile. It adds an established and well reputed marketing network to our operations, which will enable us to obtain better realizations for our high-end yarns. RSWM has been keen to expand its yarn business, especially in the value-added space and this transaction is a part of a series of initiative that we are implementing to enhance our business operations, rapidly and profitably.'

        Alex Sala Lanz, general director, SISA SA, said: SISA has a strong brand reputation in Europe and the partnership with RSWM will considerably augment our existing operations so that we are able to immensely accelerate our pace of growth going forward.

        We have been dealing with RSWM in the past, and the quality of their operations gives us complete confidence in their ability to provide higher value-added yarn for manufacturing top-end fabrics.

        I am delighted to have a reliable partner whose strength we can leverage to the benefit of both SISA and RSWM.'

        The partnership with SISA will enable RSWM to significantly enhance its presence in the higher value-added international yarn market.

        Additionally, SISA will substantially enhance its yarn outsourcing from RSWM, thereby increasing RSWM's international yarn volumes. Going forward, RSWM will market its superior and specialty yarn through SISA to a broad range of high end fabric makers in Europe.

        This will enable RSWM obtain better prices for its products and will also help SISA improve its earnings as it will have access to value-added yarn produced at
lower cost.