EOUs register 46 per cent growth in exports

During the first quarter of the current fiscal, 100 per cent export oriented units (EOUs), located in the Visakhapatnam Special Economic Zone (VSEZ), registered about 46 per cent growth in exports turnover.

All the zone units put together exported Rs 165.36 crore worth of products during the first quarter of the current fiscal as compared to Rs 113 crore in the corresponding quarter of last fiscal, registering a growth of about 46 per cent.

"This fiscal, some three-four new units have started operations. Also, diamond procession units like World Wide Diamonds and LID Jewellery increased their production and exports. These helped the units in registering 46 per cent growth in exports during the first quarter," P Ramesh Kumar, development commissioner, VSEZ, told Business Standard.

Of the total exports, more than 95 per cent was generated from only two diamond processing units.

"During last fiscal, exports of all zone units touched Rs 584 crore, and in the current year we are expecting Rs 1,000 crore exports turnover," he said, adding, "we are also anticipating good growth in exports from some existing units like diamond processing units and software units."

Currently, a few major units like Dr Reddy's Laboratories, Gland Pharma, Hetro Drugs, Kusalava Industries, Rana Engineering Works and Sun Ripe Agro are under construction. These units are expected to start exports during the next fiscal.

"Hopefully, this will help the exports of units here to cross Rs 2,500 crore in 2006-07," Ramesh said.