Brandix Lanka likely to set up unit in Vizag

Other Sri Lankan apparel & textile companies to follow suit

Call it the tsunami effect or the consequence of the end of quota regime in the United States and Europe, the port city of Visakhapatnam in Andhra Pradesh is likely to be flooded with Sri Lankan branded apparel manufacturers. The move is also likely to generate job opportunities.

Brandix Lanka Limited, the second largest garment exporter of Sri Lanka, is proposing to set up operations in Visakhapatnam.

"The company's consultants have already visited the place to select the location. They are now in the process of preparing a wish list to submit it to the Andhra Pradesh government for necessary support for their proposed manufacturing operations here," K Rosaiah, state finance minister, told Business Standard.

Rosaiah returned to Hyderabad on Thursday after a quick visit to Colombo to interact with the local apparel companies and also to see their facilities.

According to the minister, the representatives of Brandix are very particular about the facilities available at the Vizag port as the company's prime focus will be on exports. It may be recalled that Vizag, which has a major port, was untouched by tsunami.

Apart from Brandix, other apparel and textile companies of Sri Lanka too are willing to set up their manufacturing units in Andhra Pradesh, Rosaiah said.

"Brandix chief executive officer Ashroff Omar indicated that the size of their proposed operations in Vizag could be four times bigger than their existing operations in Sri Lanka," he said.

At present, Brandix has over 20 manufacturing facilities in Sri Lanka, Maldives and Madagascar along with its marketing offices located in New York, Columbus and London and a sourcing office in Bangalore. Its top ranking clients include Victoria's Secret brand of lingerie and Tommy Hilfiger among others.

The Sri Lankan textile and apparel industry generates over 53 per cent of the total foreign exchange earnings and employs one in six of the working population in that country. Brandix accounts for 6 per cent of the total textile and garment exports of the country.

"At the proposed unit in Visakhapatnam, the company initially plans to employ over 4,000 people. It will later increase the strength up to 7,000," Rosaiah said.

According to him, the company will train the required manpower. Senior officials of the company are expected to visit Hyderabad some time next month to discuss with the state government on the proposed operations in Vizag.