Firms see new life after quota

NEW DELHI: Indian apparel manufacturing companies like Arvind Mills, Grasim Industries and ITC are gearing up to cash in on opportunities after removal of quota regime in January 2005. India manufacturers will get access to a new market of over $ 600 billion (Rs 27 lakh crore).
At present, every country has certain quota for exporting to developed countries under the multi-fibre agreement.After removal of the quota regime, Indian companies, instead of exporting fabrics, would export apparels directly, said president of Arvind Brand Darshan Mehta. He said that many global brands were keen to outsource their requirements to Indian companies. Arvind Mill is setting up an apparel manufacturing units near Bangalore with an investment of Rs 100 crore. The new unit will manufacture 50,000 shirts and 35,000 jeans a day. Mehta said that the new company would create 15,000 new jobs, mainly for the women.
Arvind Mills has a stitching plant which produces 10,000 shirts and 7,000 jeans a day. At present, it exports apparel worth Rs 75 crore and has a domestic turnover of Rs 270 crore. The new plant will produce for the export market mainly. According to one estimate, its export turnover in the next couple of years will be over Rs 1,000 crore.
Grasim is preparing to enter into the contract manufacturing business for big brands. The exports growth of Grasim would be in the range of 20 per cent compared to a 10-15 per cent growth in the domestic market.
ITC Ltd is also expanding its capacity to tap the new emerging opportunities. Chief executive of ITC Ltd Chitranjan Dar said the company was looking at the design-led export. Refusing to assign any figure, he said that investment was not a problem.