At a time when the textile sector is in the red, Orient Craft, one of the country's largest garment manufacturing companies, has embarked on a diversification initiative that involves setting up of a textile-focused special economic zone (SEZ) at an investment of Rs 2,100 crore.
The move is aimed at diversifying the Rs 750-crore company's profile and reducing its dependence on export revenues.
The textile SEZ, spread over 334 acres in Manesar (Haryana) along the Kundli-Manesar-Pallwal expressway, will provide employment to 50,000 people when fully operational in 2011. The first phase of the project is expected to be completed by the first quarter of 2010.
"India has everything -- designers, manufacturers and buyers -- to be a fashion hub of the world. The one thing that is missing is a place where all stakeholders can come and work together. The fashion village (textile hub) will be a place for all these people to work together and generate business. Customers will find it convenient to do business," said Orient Craft Chairman and Managing Director Sudhir Dhingra.
A special purpose vehicle -- Orient Craft Infrastructure -- will raise about Rs 650 crore as debt. It also expects Rs 850 crore from sale of industrial plots and residential units. The remaining amount of around Rs 600 crore will be funded through internal accruals, he said.
The company is in talks with several real estate players for developing hotels and hospitals within the zone. Dhingra added that the company had been approached by several venture capitalists to participate in the development. "The proposals are under active consideration," he said.
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Of the 334 acres, about 178 acres will be sold as plots for setting up home furnishing and garment factories. The remaining area will be allotted for mixed use, accommodating business and luxury hotels, retail and commercial space, a school and a training centre, among other facilities.
"We hope to have all big international apparel brands like Armani, Gucci and Prada. We have already talked to around 42 companies," Dhingra added.
The SEZ, the first textile-centric zone in north India, will also have residential units. "Designers and manufacturers will need luxury apartments to stay within the city.