Top garment firms eye cost-friendly Ethiopia for expansion

Top garment cos plan Rs 600 cr outlay; Ethiopia offers duty-free market access, cheap labour, power

With the cost of business going up in India and competition increasing from neighbouring countries, garment manufacturers are now looking at Ethiopia to set up manufacturing. Indian firms, which have lined up over Rs 600 crore in investments in that country, say Ethiopia gives duty-free access to Europe and US markets.

The companies setting up shop in the African nation include Raymond, Arvind Ltd, Best Corporation, and JJ Mills, among others.

Raymond is investing about Rs 130 crore in a plant to manufacture two million jackets. The company has expanded its footprint through the acquisition of a garment unit in