Aditya Birla Fashion And Retail invests INR 114 crore to initiate Odisha manufacturing plant
Published Date | 2019 February 21
Aditya Birla Fashion Retail plans to set up new manufacturing facility with an investment of Rs 144 crore; will drive the Textile Industry globally.India: Mumbai-based Aditya Birla Fashion Retail Ltd is all set to set up a new apparel manufacturing plant in Rayagada district of Odisha with the investment of INR 114 Crore. This manufacturing plant will have the capacity to produce 3.6 million pieces of apparel per annum. The approved projects encompass a range of industries such as downstream steel and aluminum, food processing, hospitality, iron and steel, plastic pipes and fittings among others. This will be the second apparel manufacturing unit of ABFRL in Odisha followed by the first which was set up in November last year in Bhubaneswar. In the proposal, the company indicates that the total funding of the new up-coming plant will be financed 30% by equity and balance 70% by term loan. The project will be executed within 24 months from the date of approval. ABFRL sells in-house brands such as Louis Philippe, Allen Solly, Peter England and also runs the fashion retail chain such as Pantaloons. The company’s first unit in Odisha has a capacity of around four million shirts per annum providing employment mostly to women. According to BlueWeave Consulting, India's textiles sector is one of the oldest industries in the Indian economy dating back several centuries. The textiles market is expected to witness growth on account of the growing consumption of apparel. The major driving factors for the growth are rising per capita income, favorable demographics and a shift in preference to branded products to boost demand. The ability to accomplish different technologically advanced functions has resulted in various technological innovations in smart textiles in the electronics manufacturing sector. This factor is expected to remain as a key influencing factor for promoting the textile market over the projected period. With the Falling cotton prices in India warehouse has increased, and are expected to remain a favorable factor for textile manufacturers supported by the rising importance of produced wool via non-mulesed methods, is projected to increase the access of raw materials. The Indian textiles industry is extremely diverse with multiple hand-spun and hand-woven textiles sectors at one end of the spectrum, with the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralized power looms/ hosiery and knitting sector forms the largest component of the textiles sector. The close link of the textile industry to agriculture (for raw materials example cotton) along with the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries around the world. The Indian textile industry has the capacity to produce a wide range of products suitable to different market segments, both within India and across the world. Furthermore, a growing number of fashion retail outlets and supermarkets in developing economies, owing to government support to promote investments is expected to increase the textiles demand in the near future. According to the upcoming report by BlueWeave Consulting on “India Textiles Market, By Raw Material (Cotton, Chemical, Wool, Silk), By Product (Natural-Fibers, Polyester, Nylon), By Application (Household, Technical, Fashion & Clothing), By Region (North, South, East, West), Size & Forecasts, 2018 - 2025,”- Indian textile industry is one of the largest industries in India. In order to enhance the goal of making India's development inclusive, the central government is focusing on various policies in providing best manufacturing and infrastructure to local artisans, technology, and innovation, enhancing skills and strengths of the local industry. The future for the Indian textile industry looks promising, lifted by both strong domestic consumption as well as export demand. With the rise in consumerism and disposable income, the retail sector has experienced rapid growth in the past decade backed up by the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. High economic growth has led to a rise in demand for products creating a huge domestic market.