October 12, 2015 (India)
Kanoria Chemicals and Industries Limited (KCI) will inaugurate its denim production plant in Ethiopia on October 24, 2015 as a part of its expansion move into textiles, according to a top company official.
“The denim production plant at Ethiopia will be inaugurated this October 24. In the first phase, we plan to manufacture 12 million metres of high quality denim fabric at this plant,” Asit Roy, assistant vice president (Economic Affairs), KCI told Fibre2Fashion.com.
“We wanted to diversify into textiles, and also increase our international footprint. The future economic growth will be driven by Africa, and the company intends to create a foothold for future expansions. The venture in Ethiopia will not only provide it a base, but will also provide a better access to the African market,” he explained.
This plant will be a value addition to Ethiopia’s largely agrarian economy, and hence it will also get the support of the Ethiopian government, according to Roy.
KCI also wanted to capitalise on the early mover advantage in denim production in East Africa. “Inexpensive power, availability of cotton and a pro-industrialisation stance of the Ethiopian government are the other reasons for locating the project in Ethiopia,” he said.
KCI has so far invested $44 million in the Ethiopian plant and the products manufactured there would be mainly meant for exports, informed Roy. (MCJ)
Fibre2Fashion News Desk – india