Soon on the cards is a visit from Tirupur-based knitwear industrialists’ visit to Ethiopia for purpose of analyzing the prospects of making investments in the African country. The group of investors from the knitwear segment has planned a team visit.
Their plan to explore opportunities in Ethiopia follows close on heels to the information flowing from the Ethiopian ministry officials to N Sreedhar, Chairman of Tirupur Chapter of the confederation of Indian Industry (CII) that there are a slew of advantages including cheap labour and free trade access to European and American markets. The CII chapter at Tirupur is organizing the business tour.
Sreedhar, in a media statement disclosed, “In Tirupur cluster, we are witnessing increase of production and operation costs. Many established players are looking for expansion opportunities. While Chinese companies are investing heavily in underdeveloped countries to make use of trade advantages of those countries, Indian companies should also be in the fray to compete favorably. ”
Sreedhar added, “Having expertise in the international market, the companies can look for investment opportunities in countries like Ethiopia. With that, they can improve their market shares and it will obviously help to improve further relationship between our country and the ones where the investments made.”
“It is not about moving whole production machinery out of India. The companies would see the opportunity to expand their business in those countries. The Tirupur units can concentrate on producing bulk quantities of basic styles of garments rather than tough styles, if they invest in Ethiopia. But all such prospects are in preliminary stage. While few companies from Tirupur have invested in Ethiopia, it would be easy for other possible investors to analyze and take decisions,” Sreedhar concluded in his media statement.