Raymond to ‘Make in Africa’ with Ethiopia plant, eyes US, European markets

By

Maverick Martins

Published
Jun 21, 2017

​India's leading textile and apparel major Raymond Limited will now ‘Make in Africa’ as it has opened a garment manufacturing facility in Ethiopia to primarily cater to the US and European markets, the company said in a statement.

As the Indian government continues to promote and invite foreign companies through its ‘Make in India’ initiative, Raymond has invested Rs 100 crore in a plant at Hawassa Industrial Park (HIP), which will be operated by Silver Spark Apparel Ethiopia PLC, a wholly owned subsidiary of Raymond.

The company has also employed 500 locals and said it would create employment for 7,000 people towards the end of its final phase.

The 27,000 square metre Ethiopia plant will manufacture 1.4 million suits per annum at the facility and the company expects to generate a revenue of Rs 250 crore by exporting to big ticket markets of USA and Europe all thanks to Ethiopia’s duty-free access to these markets.
 
Raymond Chairman and Managing Director Gautam Hari Singhania, in explaining the logic behind investing in Africa rather than back home in India, said that Ethiopia requires less capital expenditure due to low cost of land, subsidised power, availability of readymade industrial sheds and low cost labour as compared to India.
 
He said that Ethiopia’s duty-free access to Europe and America further reduces the cost and would induce global buyers to source from the country.
 
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 statement added.