News-Record.com

International Textile Group's Burlington WorldWide division has formed a partnership with an Indian manufacturer of worsted wool fabrics, with hopes of expanding the Greensboro-based company's hold on the Indian market.

According to a Wednesday filing with the Securities and Exchange Commission, ITG has entered an agreement with OCM India Limited, a Amritsar, India-based company that, like the local textile operation, is majority owned by WL Ross & Co. LLC. Under the terms of the agreement, Burlington WorldWide will help OCM develop and promote new wool fabrics using, in part, technologies developed by ITG. Some of these fabrics could be exported for sale in the U.S. European and Asian markets.

In exchange, OCM will be licensed to make and sell wool fabrics using the Burlington brand name throughout India. The Indian company will pay ITG royalties both for using the brand name and employing Burlington WorldWide's technologies to produce new fabrics.

And, of course, there are other financial facets to this deal. OCM has agreed to pay ITG a quarterly service fee of $75,000 through the end of 2007. Next year, the Indian company will up that quarterly fee to $150,000.