In a strategic investment move, the global leader in nonwoven fabric, Avgol, increases its capacity in South Asia by relocating its SMMS and an additional meltblown lines to India. The Israeli company is part of Indorama Ventures Limited and leads the global hygiene market with the most comprehensive range of ultra-lightweight spun-melt nonwoven fabrics.
Currently, the relocation of the 5 production lines from Barkan, Israel is underway with the expected deadline for completion of the installation set for the end of 2021.
Speaking about the move, Shachar Rachim, CEO – Avgol says: “This is part of our company’s commitment to continue increasing our presence and services across India and South Asia. This establishes our facility right at the heart of the local market. There is a huge demand locally for hygiene products in India and across the South Asian region but going by the massive tariffs on imports, this move works positively for us.”
Increasing Demand
The demand currently stands at 165% as against the local supply capacity, according to Rachim. He attributes the relocation to the projections that show regional organic growth, improved promotion on feminine health and increased awareness of hygiene owing to the COVID pandemic.
The hygiene segment, including baby diapers, adult incontinence and feminine hygiene products, is one where locally ‘the demand is only going to go up’.
The investment in the new production capacity in India is a step in the direction of supporting Avgol’s product development efforts under the company’s Forward Innovative Thinking (FIT™) strategy. The company consistently invests in its R&D to continue to create value, flexibility, sustainability and reliability for brands and manufacturers.
With this relocation, Avgol aims to increase nonwoven fabric production and be in a strategic location to serve the increasing needs of the Indian subcontinent in the future.
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“This is part of our company’s commitment to continue increasing our presence and services across India and South Asia. This establishes our facility right at the heart of the local market. There is a huge demand locally for hygiene products in India and across the South Asian region but going by the massive tariffs on imports, this move works positively for us.”
– Shachar Rachim, CEO – Avgol