This quote from Ashok Mahtani was from the ASX release in November 2022.
Nullabor-20 had been milled into a number of different yarns, undergone stringent testing, and supplied to their customers.
The result - Nullabor is a preferred fibre, and Nullabor-20 is ready for wide adoption.
And yet here we are in August-24 still nutting out terms for a JV - it's taken almost 2 years from this point in Nov-22.
No wonder Wayne has had to do a couple of top-up CR's to keep the lights on while this was sorted out - timeline stretched out for some reason.
Possible reasons:
- the clue is in the quote "with the potential to match the scale". Paradise needed guarantee of scale. The granted IP with Birla, now has Birla committing to scale to Nanollose/Paradise ...
- Paradise tried to replicate in-house.
- Nanollose terms were unacceptable - Wayne has modified.
- Paradise terms were unacceptable - wanted exclusive supply and we were dealing with ORTA and INDITEX. INDITEX relationship ended, and denim exclusivity was left out.
- Re-negotiated terms with Birla has allowed scaling to benefit JV
Whatever the reasons, it seems we are finally ready to complete the JV.
A quick review of Alpine Textiles customers and you can see "sustainability" as a core strategy for each & every one of them, somewhat forced by government enforced compliance.
Calvin Klein, LuLuLemon, Under Armour, Gap - all ready & waiting for Nullabor-20 and blends made up thereof.
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