Raymond subsidiary sets up garment factory in Ethiopia

Silver Spark Apparel Ethiopia PLC, a wholly-owned subsidiary of Raymond, the leading manufacturer, marketer and retailer of worsted suiting fabrics and ready-to-wear apparel, recently inaugurated its greenfield garment manufacturing facility in Ethiopia. Set up at Hawassa Industrial Park (HIP), with an investment of over Rs. 100 crores, this foray is in line with the group’s ambition to expand its presence across international markets.

Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Ltd.

This state-of-the-art garment manufacturing facility that will primarily cater to the US and European markets was inaugurated by the Prime Minister of Ethiopia Mr. Hailemariam Desalegn, along with Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Ltd.

Expected to generate employment for over 2,500 people in the first phase, the commissioning of this unit will pave way for incremental job opportunities going forward. The workforce employed in this unit will be duly upskilled by the highly experienced expatriate team from India.

This capacity expansion will mark Raymond’s entry amongst the top 5 leading suit manufacturers in the world. Raymond has a notable presence in garment manufacturing through its four facilities in Bengaluru since 2003 and has earned the trust and confidence of its consumers.

Commenting on this strategic move, Mr. Singhania stated: Raymond is one of the world’s biggest comprehensively integrated textile & apparel conglomerates. With a clear direction of capacity augmentation, we continue to stay committed to ‘Make in India’ and have invested in a greenfield project. It is a strategic decision to set up a garment manufacturing unit in Ethiopia to mitigate our risk as far as our exports are concerned. Reckoned for providing the highest quality products, Raymond has earned the trust and confidence of eminent brands across the US, Europe and Japan. In our endeavour to ensure price competitiveness, Ethiopia makes a compelling business case and enables us to serve our international customers. Leveraging the skill sets of garment manufacturing facilities on the domestic front, which are acquired over a period of time, this quantum leap into an international location for manufacturing has been triggered by both core competence and business considerations.”

In order to be globally price competitive for the export market, setting up a garmenting plant in Ethiopia is a strategic move to ensure duty-free access to key export markets such as the US and Europe. Also, The Federal Democratic Republic of Ethiopia offers manpower at a highly competitive rate, highly subsidised power and readymade industrial sheds that considerably reduce capital expenditure along with duty benefits which would induce global buyers to source from Ethiopia.

Silver Spark Apparel Ethiopia PLC is amongst a host of other International Investors who have set up their facilities at the Hawassa Industrial Park. This park would be an international hub for garmenting, with representation of several companies the world over.

Silver Spark Apparel is one of the largest manufacturers of high-end suits, jackets, trousers and shirts, exporting to leading international markets such as the US, the EU and Japan. This is only Indian manufacturer with an expertise to craft full canvas suits.