Omani firm to set up Rs 50cr unit at Vizag Apparel Park

Oman-based Buran Garments is planning to set up its unit at the Visakhapatnam Apparel Export Park at an estimated investment of Rs 50 crore. The company currently has its garments manufacturing unit at Oman and has been exporting its products to other countries.

"After the recent decision on abolition of quota system in textile exports by the World Trade Organisation (WTO), the Oman-based garment exporting company is planning to set up garments manufacturing unit in India," K Srikanth Prabhakar, park administrator, Visakhapatnam Apparel Export Park, told Business Standard.

"The labour and other production costs are much cheaper in India when compared to Oman. Keeping this in mind, Buran Garments is planning to shut down its operations at Oman and set up its manufacturing unit at Visakhapatnam," he added.

"Buran Garments' representatives have taken all the details pertaining to the facilities available at the apparel export park. They asked for about 10-15 acres of land at the park for setting up the unit. The company is expected to invest close to Rs 50 crore. Once the company sets up its unit at the park, it is likely to export garments to the tune of Rs 200 crore annually. We will be able to give a clear picture about the project in the next one month," Prabhakar said.

Apart from the Omani firm, another 11 small and medium entrepreneurs have applied for land to set up garment units at the apparel export park.

"We will be allotting 12.15 acres of plotted area to these 11 small and medium entrepreneurs this month. These companies are planning to invest around Rs 1-2 crore each and have given projections of around Rs 4-5 crore every year," he said.

"Due to the government's decision we have recently reduced the land prices at the park. Initially, we have sold a square metre of land at Rs 200. Later, the land prices have been increased to Rs 225 per square metre. To attract more small and medium investors, we are selling a square metre of land for Rs 200," he said.

A couple of companies, which purchased land, have already commenced the construction work at the park. But due to the High court order, the Andhra Pradesh Industrial Infrastructure Corporation, the developer of the land, has stopped the activities temporarily, he said.