Indian fabrics and apparel major Raymond will export garments to Europe and the US from its Rs. 100 crore plant in Ethiopia. The company has set a target of an annual revenue of about Rs. 250 crores within a year from the plant by exporting mainly to the two developed markets.
The 27,000 square meter plant has a capacity to produce 1.4 million suits per annum. It will only produce suits and exports will start from early next month. The facility currently makes 500 suits a day and the company plans to increase it to 4,000 per day by next year.
Ethiopia has duty free access to Europe and America. Ethiopia has a low labor cost, low land cost, subsidised power and availability of readymade industrial sheds.
The company would create employment for 7,000 people towards the end of its final phase. It currently employs 500 locals. The green field suit plant will be operated by Silver Spark Apparel Ethiopia, a wholly owned subsidiary of Raymond. Raymond feels the plant would be significantly cost competitive and would lure global buyers to source the suits from Ethiopia.
Raymond is also looking to expand its retail presence to about 1,500 stores by 2020 The company will open nearly 150 to 200 stores this year. Raymond has more than 1,000 retail stores that are franchise based.
