Lack of export orders and operational cost has been the main reason behind shutdown
Picture for representational purpose
Visakhapatnam: The dreams of the state government to make Vizag a hub for apparel manufacturing and exports seem to have gone sore. It’s been more than 10 years that the state government put in efforts to attract investments in the apparel sector both in large and small, medium scale but barring half a dozen MNCs that are into women lingerie manufacturing there is no major activity.
To attract investments in small and medium scale sector, especially to set up export-oriented units, state government’s APIIC developed apparel export park in 2007 at Vadlamudi spread in 145.60 acres in block E of industrial estate of Gajuwaka. It was proposed to produce export goods worth Rs130 crore after the completion of the park and achieving full occupancy.
Until now only five plots of the total 70 were allotted to various apparel manufacturing and export units. Though allotment was done, only a couple of units are in operation and two were shut due to lack of export orders and high operational costs, which include, labour costs.
Some of them have also put their units on outright sale. “Earlier, we used to have orders from Chinese apparel companies for collars and T shirts. From China these used to go to the US and European market. Due to slump in the market and also fierce competition form low cost destination country like Bangaldesh, the pie has been taken away from us,” said an industry insider who wrapped up an export unit recently.
Similar is the situation at Brandix India Apparel City (BIAC), Indian arm of Brandix Lanka. The BIAC came into operation in 2010 in 1,000 acres aimed to attract investments to set up apparel manufacturing and exp-ort units. Until now only 9 units are operating.
( Source : dc correspondent )
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