Home / Knowledge / News / Textiles / Local textile firms to shift production base abroad

Local textile firms to shift production base abroad

22
Jan '07
Indian textile companies are mulling over a strategic shift of production base to Uzbekistan and Kazakhstan on account of problems like high power tariffs, labour law inflexibilities and infrastructure limitations.

This move could enhance country's cost competitiveness in world's export markets. Both countries offer cotton at discount of 15-20 percent against local prices.

Uzbekistan previously revealed plans for luring about $300 million investment from Indian textile firms within 2010. Uzbek Government has promised 15 percent concession on purchase of cotton for spinning, while 20 percent is offered on cotton procurement for apparel units.

Kazakh Government is inviting investments into Ontustik SEZ, which offers various tax exemptions to textile enterprises on condition that they manufacture products from 100 percent cotton, of which at least 30 percent must be Kazakh cotton.

Indian textile companies are thinking over investing in both major cotton producing nations because they have proposed advantages such as low cotton prices, less expensive power supply, rich infrastructure and ten year tax holidays. Further, big EU markets are closer to these nations.

One of the initial forayers into Uzbek market is Spentex Industries Ltd. Sources informed that Vardhaman Group will acquire an Uzbek firm for expanding operations in its textile industry.


Must ReadView All

Pic: Shutterstock/humphery

Textiles | On 18th Sep 2021

China wants to join CPTPP; Japan to consult members to respond to bid

Chinese commerce minister Wang Wentao recently submitted an...

Pic: Shutterstock

Textiles | On 18th Sep 2021

Eurozone GDP recovers quicker than expected after lockdowns: EU report

The eurozone economy recovered more rapidly than considered earlier...

Pic: Shutterstock

Apparel/Garments | On 18th Sep 2021

BGMEA urges Canadian buyers to source apparel from Bangladesh

Bangladesh Garment Manufacturers and Exporters Association (BGMEA)...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Textile Industry, Head honchos

Textile Industry
Head honchos

Next level is to inject new features:

Textile Industry, Head honchos

Textile Industry
Head honchos

Ensured payment of fee was least concern for students

Daniele Uboldi,

Daniele Uboldi

EptaInks is the screen-printing division of Eptanova, a company that...

Rajat Kapoor,

Rajat Kapoor

Seraphine is a British maternity brand providing affordable luxury fashion ...

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Dr. Sean Blamires, Evolution and Ecology Research Centre

Dr. Sean Blamires
Evolution and Ecology Research Centre

Using spider silk for clothing may not seem to be an attractive...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2021

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


Advanced Search