Apparel firms give Bangalore a dekko

HIGHLIGHTS 2004/ Bonanza from end of quota regime

The 24x7 IT city Bangalore is humming another set of numerals "" 186 gone, 250 to go. This time around, it is the much underplayed Rs 4,500 crore apparel segment, specifically the Doddaballapur apparel park that is grabbing the attention.

A late bloomer, the 186-acre Bangalore apparel park will be the second fully-occupied such park in South India, after the knitting town Tirupur.

Buoyed by the response from the likes of Raymond and Mudra, besides city biggies Gokaldas and Himatsingka Seide, the state is initiating efforts to promote a Rs 40 crore, 250-acre second phase.

The first phase, set to see production by April 2005, was conceived at Rs 32 crore in 2001-02. After crossing several hurdles, and acquiring the tag of 'non-starter', the project is now estimated at close to Rs 52 crore.

A senior official from the nodal agency, Karnataka Industrial Area Development Board, said, "The second phase already has three firm applications. Once we start our promotional efforts, we expect full bookings in no time."

Overseas interest too is showing up. Sandeep Dave, commissioner for textiles, government of Karnataka, said recently that at least two overseas apparel firms have evinced interest in picking up space. Sources add that UAE-based AMtek has formally applied for space.

A huge order influx in the wake of the dismantling of quotas acted as a catalyst, forcing firms to book spaces during the last six months.

At the same time the state addressed several pertinent issues like water. "The tender is being finalised for the Rs 8 crore project to draw one million gallons of water a day from Yelahanka."

Post this, apparel majors Raymond bought 14 acres, silk firm Himatsingka Seide nine acres and Mudra 20 acres. In all, the first phase, with 120 acres of industrial plots will have 29 units. About 70 per cent or 175 acre in the second phase will be earmarked for industrial plots.

Officials said that the stage is expected to fetch 10 per cent to 15 per cent higher than the scheduled rates, which are already a year old. KIADB expects to wrap up the land acquisition in the next six months.

In the second phase, infrastructure development will only be onsite. With the offsite developments like water line, 11 kw power line, common effluent plant and training centre already planned in the first phase, cost overrun is expected to be minimal.

Also, with the launch of the apparel park, the tussle for supremacy in apparels in South India, between Tirupur and Bangalore, will take on a new dimension. For the moment though, Tirupur will maintain its edge. The over Rs 5,000 export zone will inaugurate its Rs 300 crore, 54 unit Netaji Apparel Park spread across 165 acres, on January 9.

The outlook from both centres is bullish. Tirupur apparel firms are betting on doubling exports by 2007-08, while Bangalore has forecast Rs 9,000 crore in the next five years.