More and more garment manufacturing multinational conglomerates are entering India. In February this year, Hong Kong-based Epic Group announced the investment of US $20 million in Ranchi (Jharkhand).
Now there’s another similar investment!
Youngone Corporation, the Korean textile and apparel giant,has signed an agreement with the Government of Telangana wherein it was announced that the firm will invest more than Rs. 900 crore in the Kakatiya Mega Textile Park (KMTP) in Warangal (Telangana).
The investment will create around 12,000 direct jobs.
The company will be producing knitted and woven garments for outdoorwear and technical textile products.
Overall 290 acres of land have been taken in the park,where8 units will come up. These will include 4 apparel manufacturing factories and 1 knitting unit, technical textile unit and processing unit each. The products made from these units will be exported.
The first unit (apparel manufacturing) is expected to be operational in next 8 months.
Having operations in 13 countries including Bangladesh, Vietnam and Ethiopia, Youngone Group has a workforce of around 90,000 persons globally. The company, which is known for technical outdoorwear, athletic apparels and footwear, among others, has an annual turnover of US $1.75 billion.
Prashant Agarwal, JMD, Wazir Advisors, “such investment will motivate not only overseas but also Indian companies to invest as Indian companies are good followers. As far as the point whether it is easy or difficult to run factories in India is concerned, we have to see that Brandix’s Vizag unit is performing very well as they have good efficiency, productivity and overall process and systems.” He further adds that many Indian states are offering best incentives compared to globe.
K.T. Rama Rao, Telangana’s Industries Minister, Sripriya Ranganathan, Indian Ambassador to Korea, Ashin Bongkil, Korean Ambassador to India were present during the signing of the agreement.
Youngone Corporation stated that Telangana’s industrial policies have encouraged them to invest in Telangana.
Rama Rao said that this anchor investment will be instrumental in bringing more international investments in KMTP as well as in Telangana. KMTP is claimed to be one of the largest textile parks in India.
A few Chinese giants are also now exploring India to invest in apparel manufacturing. With this regard, it is important to mention that many Indian states, as well as the Central Government, are offering lucrative policies to attract investment.
E Land Apparels, another Korean company, already has its operation in India.