Avgol, a manufacturer of spunmelt nonwovens, is relocating an existing asset from Israel to India as part of an immediate strategic investment in the region.The move is part of the company’s commitment to continue increasing its presence and service across India and South Asia, according to CEO Shachar Rachim.

“This strategic move positions our line rapidly at the heart of the local market,” says Rachim. “There is a huge domestic demand for hygiene products in India and across the South East Asia region but there are heavy tariffs on importing materials. The demand is already at 165% against local supply capacity. Our projections show that through regional organic growth, improved promotion of feminine health, and increased awareness of hygiene because of the coronavirus pandemic, demand is only going to increase.”

Avgol, an Indorama Ventures Limited company, leads the global hygiene market with a comprehensive range of ultra-lightweight spun-melt nonwoven fabrics. “Serving the baby diaper, adult incontinence and feminine hygiene markets, this move enables us to deliver an improved local service across the entire area,” Rachim adds.

Mr Rachim said that the investment in new production capacity would also support further product development from Avgol, under its innovative Forward Innovative Thinking strategy (FITTM). The research and development program creates value, flexibility and sustainability for brands and manufacturers from the outset.

“As a highly innovative and responsive supplier, we are continually investing in R&D to ensure we are developing the best products to meet demand,” says Rachim. “With this relocation, we are ensuring that we can increase nonwoven fabric production to both meet the immediate, obvious local need and also be best-placed to serve the increasing future needs of the Indian market.”

Relocation of the Avgol Line 5 production from Barkan, Israel, to the India is underway now, with installation expected to be completed by end of 2021.

Avgol entered the market in India in 2018 when it completed its first spunmelt line, which was reported at the time to be a non-Reicofil asset. At the time, the company said the investment was intended to help support existing customers as they entered the Indian market.