Home / Knowledge / News / Textiles / Indian firm to set up $550mn spinning mill in Ethiopia
Indian firm to set up $550mn spinning mill in Ethiopia
May '14
India-based ShriVallabh Pittie (SVP) Group is setting up a US$ 550 million spinning mill in Kombolcha town, located in the Debub Wollo Zone of Ethiopia’s Amhara Region, Ethiopian News Agency reported.
The textile mill, to come up on 50 hectares of land at the industrial zone in Kombolcha, is likely to significantly contribute in achieving the objectives for the textile industry set in the Government’s Growth and Transformation Plan.
Kombolcha was chosen for construction of the textile mill due to its proximity to cotton growing regions of Metema and Humera, Vinod Kumar Pittie, chairperson of SVP Group said while launching the project.
The spinning mill is expected to be ready and full operational next year. It would have a capacity to produce about 280 tons of cotton yarn per day and would employ nearly 13,000 Ethiopians, Mr. Pittie said.
The yarn manufactured at the new mill would be mainly meant for the export market, especially to the US, Germany, Italy, Sweden and Turkey.
SVP Group chose to invest in Ethiopia for setting up their textile mill because the country has huge potential for raw cotton; availability of labour, power and water; fast economic growth; and access to international market.
The company would take advantage of various incentives that Ethiopia enjoys on its exports. For example, Turkey exempts its up to 18 percent anti-dumping duty for Ethiopian products.
Tadesse Haile, Ethiopian State Minister for Industry, said the textile industry is a priority for the Government in the manufacturing sub-sector, and added that the mill would act as an inter-sector link between agriculture and industry.
While supporting Ethiopian Government in achieving GTP targets, the project would also bring foreign exchange for the country as there is high global demand for cotton yarn.
Founded in 1898, SVP Group has interests across textiles, finance, retail and real estate. The Group promoted Platinum Textiles Ltd. was established in 1993 and manufactures polyester & cotton blended yarn. Last year, the company announced that it is investing $70 million to build a cotton yarn manufacturing facility near Sylvania, a city in Screven County, in the US state of Georgia.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search