Indian fabrics and apparel major Raymond is looking to capture the stitched garments market in Europe and the US by exporting products from its new Rs 100-crore plant here.
The company has set a target of an annual revenue of about Rs 250 crore within a year from the plant here by exporting mainly to the two developed markets.
It is looking to cash in on duty-free access to the developed markets like the US and the Europe by setting up a plant here in Ethiopia, which has a trade pact with them.
"From this facility, we are looking at an annual revenue of about Rs 250 crore from the exports to Europe and America in a year or so when the scale will reach to 4,000 suits per day," Raymond Chairman and Managing Director Gautam Hari Singhania told PTI.
He said the new plant here would be significant cost competitive and the company is confident of luring global buyers to source the suits from Ethiopia.
"Ethiopia has a duty-free access to Europe and America so the cost comes down significantly and also the government is very stable here, " Singhania said.
Besides, unlike India, the country requires less capital expenditure due to the low cost of land, subsidised power and availability of readymade industrial sheds, he said, adding low-cost labour is also an advantage here.
The 27,000 square metre plant set up at the Hawassa Industrial Park has a capacity to produce 1.4 million suits per annum. It will only produce suits and exports will start from early next month.
The facility currently makes 500 suits per day and the company plans to increase it to 4,000 per day by the next year.
The garmenting plant was inaugurated today in presence of the Ethiopian Prime Minister Hailemariam Desalegn.
The company said it would create employment for 7,000 people towards the end of its final phase. It currently employs 500 locals.
The greenfield suit plant will be operated by Silver Spark Apparel Ethiopia PLC, a wholly owned subsidiary of Raymond.