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'US duty-free status offsets high energy rates in Jordan'
Oct '14
Mr. Sanal Kumar
Mr. Sanal Kumar
“The increased price we pay for energy can be very well offset by the duty free status the country enjoys, thereby the factories in Jordan can get better price from its customers to offset the increased cost we pay for energy,” said an Indian origin entrepreneur of a Jordan based apparel factory.

Sanal Kumar – CMD of Classic Fashion in an exclusive chat with fibre2fashion discussed the investor-friendly attitude of the Jordanian government and also refuted allegations of Classic Fashions being in the news on non-compliance issues.

Classic Fashion has grown from a mere $2 million turnover in the year 2003 to $250 million in this year, and majority of these sales came from its old trusted customers like Wal-mart, HanesBrands and Jones Apparel Group.

Sharing his views on energy shortages, which are some of the major disadvantages of the textile industry of Jordan, he added, “Though there are power crises and energy shortages, but the country supplies enough and uninterrupted energy at a price.”

On Jordan being an attractive destination, he said, “In an FOB of a garment, 70% goes for fabric and accessories and the balance 30% is its making cost and profit. Since the US import duty on synthetic garments ranges between 30-33%, it gives a definite price advantage for products of Jordan origin.”

“Moreover, Jordan is a zero red tape and almost corruption free country. Further, it helps investors bring expert machine operators from all over the world, which helps us export best quality products to USA. Moreover, Jordan is free of strikes, stoppage of work, etc., which helps to meet delivery deadlines,” he informed.

On allegations of noncompliance issues and worker right abuses at Classic Fashion, he explained, Classic Fashion was always a well complied factory and it is in the Golden List published by the Ministry of Labor, since inception of the Golden List in 2006.

“The company enjoyed its customers confidence at all times and none of its customers ever dropped Classic Fashion from their supply chain. Rather, we have grown from a mere $2 million turnover in the year 2003 to a $250 million company in this year.

“Further we have succeeded in adding prestigious brands like Under Armour and NIKE this year. None of these brands would have ever come or stayed with us, if we were non-complaint. We are the single largest garment exporter of Jordan, exporting 18% of country's garments export by value.”

Click here to read the whole interview.

Fibre2fashion News Desk - India

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