European textile firms to set up units in India

European textile and high end specialty chemical companies will soon set-up their units in India at Mundra Special Economic Zone, to take the advantage of tax benefits, reform policy and the low cost of production.

S J Vijay, director of Mundra SEZ, told Business Standard, "Three European companies will soon set up their units in Mundra SEZ".

He further said that all the three European companies have carried out due diligence study as the respective companies' local team, technical team and commercial teams had visited the SEZ and carried out the feasibility study.

It is learnt that all the European companies have expressed that interest in setting up their units at Mundra.

When asked to name the companies, Vijay declined to disclose the name but informed that the European companies are in the textile and high end specialty chemicals segments. "Two companies are from Germany and one from Finland", Vijay adds.

The kind of investment is not know to the Mundra SEZ's officials but it is learnt that clubbing the total requirement of land by all the three European companies that comes to approximately 300 acres.

"When clubbing all the three companies the total land that would be required by the companies would be 150 acres", said Vijay.

He further said that it is normal estimation that with these a land of equal size are required by the companies to set up their social infrastructure facilities.

On Wednesday, Mundra SEZ announced its alliance with the Airtel Group for setting up the telecommunications network infrastructure for its multi-sector SEZ. A memorandum of association has been signed for the said project, soon which will be turned into a agreement.

The alliance is for seven years.

The end-to-end telecom solutions work will be over in six months, informed Vijay. He further said that the security system at Mundra SEZ will be digitised once the telecommunication network infrastructure is created.

"By mid of the year the security system will be digitised", said Vijay adding that after the digitisation of the security system, the movement of goods and people can be seen as well as controlled from one centre.