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Bangalore a top sourcing hub for international brands

13
May '06
Bangalore is fast emerging as an important sourcing hub for international top brands for servicing their operations in Bangladesh, Pakistan and Sri Lanka.

Adidas-Reebok combine, Next and Calvin Klein have added their names to an already impressive list which includes Wal-Mart, Tesco, Marks & Spencer, Tommy Hilfiger with plans to establish their sourcing base here.

Bangalore has about 1,800-2,000 textile and garmenting units in nearby centres like Coimbatore, Salem and Erode's textile/garment producing cluster. This has prompted global brands to put up their sourcing base here for apparel and soft furnishings.

Adidas Sourcing is setting up a sourcing office in Bangalore to export apparel and footwear to the US and European markets. It also has plans to set up a footwear facility in Chennai.

Adidas has other sourcing hubs in the Asia Pacific region in China, Vietnam and Thailand.

“Bangalore is ideally located with several factories capable of producing international quality apparel in the vicinity, and is well-connected to the international markets,” said Andreas Gellner, MD, Adidas India.

Smaller European brands like Mexx, Oilily and Capital Mercury, the largest import trading firm in the US, have also established their sourcing operations along with high profilers.

Bangalore presently accounts for about 30 percent of the country's apparel exports amounting to around Rs40,000 crore.

Wal-Mart's sourcing operations is presently worth over $1 billion, whereas Tesco's is around $100 million. Marks & Spencer operates a sourcing business of around Rs 600 crore.


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