India’s government owned National Textiles Corporation (NTC) has announced it will invest Rupees 4.25 billion in a technical textiles joint venture to meet the fast growing demand in healthcare and infrastructure sectors, according to a report in The Hindu.

“We plan to diversify into technical textiles space. This is an emerging sector. We will rope in a global firm that will provide technology to the venture and help to market the produce,” the NTC Chairman and Managing Director, Mr K. Ramachandran Pillai, told reporters.

The Ministry of Textiles owned company, is said to be offering a minority stake to the proposed joint venture partner and to have earmarked Rs 4.25-billion investment for the project. The proposed investment would be financed in proportion with the ratio of shareholding in the venture, the report said.

Mr Pillai said the joint venture firm would set up two units, one each in Northern and Southern India, and that the land required for putting up the plants has already been acquired.

 “The application of technical textiles is very nascent in India, but the potential is enormous,” Mr Pillai said, adding that only a couple of producers currently produce technical textiles in the country.

According to the report, the joint venture will try to market its products in both the domestic and international markets. Mr Pillai said the global market for technical textiles is likely to rise to $150 billion in the coming years from around $127 billion in 2010.

“According to government estimates, the domestic market for technical textiles is expected to register an 11% growth rate to cross Rs 66,000 crore by 2012,” the report said.

The two proposed mills are expected to be operational in 18-24 months from the zero date of commissioning the project.

The National Textile Corporation Limited (NTC) is a Central Public Sector Enterprise under the Ministry of Textiles which was incorporated in April 1968 for managing the affairs of sick textile undertakings, in the private sector, taken over by the Government. Starting with 16 mills in 1968, the number gradually rose to 103 by 1972-73.

In 1974 all of the units were nationalized under the Sick Textile Undertakings (Nationalization) Act 1974. The number of units increased to 119 by 1995. These 119 mills were controlled by NTC(HC) Ltd with the help of 9 subsidiary Corporations, with an authorized capital of Rs 10 crores* which was raised from time to time and which is now Rs 5000 crores and the paid up share capital of the corporation is Rs 3062.16 crores as at 31 December 2010.

* 1 crore = 10 million