Indian textiles mills failing “Make in India” Dream
KPR Mills commissions its unit in Ethiopia
Tirupur (Tamil Nadu, India) based KPR Mills has jumped the bandwagon with prominent textile players, such as Raymond, Arvind, Best Corporation and JJ Mills, that have set up units in Ethiopia because they are finding it difficult to take on the competition from Bangladesh, Cambodia and other nations.
KPR Mills has started unit in Ethiopia with 10 million units capacity and has invested of USD 5 million. This unit has given employment to nearly 1,000 people. According to P. Nataraj, managing Director, KPR Mills, Ethiopia has become most favourable land for the Indian textile industry because the labour cost is almost 50 per cent lower- available for USD 60 per month compared to USD 130-USD 150 in India along with duty savings and shorter shipment time to the US and European markets.
The other attractive factors are- Ethiopia is offering power at three cents, compared to 10 to 12 cents in India. The Ethiopian government already has the land and buildings readily available.
P Nataraj, said Bangladesh has free trade agreements (FTAs) with major countries, which India does not have. “The government has been negotiating for the last two-three years with other countries, but such agreements have not yet materialised. This is because if these countries sign an FTA with India, they would in turn expect duty reductions for their exports to India as well.”
Raymond has invested Rs 130 crore plant in Ethiopia which has a capacity to produce of 2 million jackets. Best Corporation invested Rs 30 crore in its phase-I project. SCM Garments, Arvind and J.J Mills are some of the other companies to which have set up factories in Ethiopia the past few years.Ethiopia News Region