Vizag apparel park may clock Rs 20 cr exports next fiscal

Visakhapatnam Apparel Export Park is likely to clock Rs 20 crore worth of exports in the next fiscal, according to the Andhra Pradesh handlooms and textiles department.

"In the current year itself, we expect few exports from the Visakhapatnam Apparel Export Park. Since eight to 10 units are set to start production at the park next fiscal, we hope to achieve at least Rs 20 crore exports in the next fiscal," K Srikanth Prabhakar, park administrator and deputy director of department of handlooms and textiles, told Business Standard.

The state government is developing the apparel export park near Visakhapatnam with an outlay of around Rs 26 crore. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has taken the responsibility to provide infrastructure facilities like roads, water, electricity and construction of buildings.

The government has allotted 145 acres of land for the apparel park. After the development of roads and other facilities, the remaining 68 acres of land will be earmarked for setting up apparel export units.

"Out of the 68 acres slotted, we have sold around 29 acres of land to 23 entrepreneurs so far. Two unit operators have already started construction work and these two units will start production by January. By next fiscal, we expect a minimum of six to 10 units to start apparel exports," Srikanth said.

Out of the 23 entrepreneurs, Hirawat Industries, Sri Sairam Garments, N Nagaiah Swarnag Apparels, Volta Impex Private Limited, D Annapurna, Saitheerdha Apparels and Seshasai Knitting Private limited have paid full payment while others have paid partial payments and reserved plots.

Due to high demand for land at the apparel park, the state government has recently increased the land prices. Initially, the government offered land at Rs 200 per square metre. But from this month onwards, the land prices have been increased to Rs 225 per square metre," he said.

"As part of the infrastructure facilities, the state government is spending around Rs 3.4 crore to set up a modern state-of-the-art training centre in the apparel park. After full occupancy, the apparel units will need around 60,000 wageworkers in this park. Accordingly, we are planning to provide training facilities to the local people. The government has already sanctioned around Rs 2 crore to the District Rural Development Agency (DRDA) to provide training in textile designing to the rural girls and boys. Apart from this, we have recently sent a proposal for Rs 4 crore to train more people in the apparel park itself," Srikanth said.