The Hindu Business Line : European textile majors gung-ho on India

EVEN as the US remains the top destination for Indian textile exports, European investors — led by the Italians and the Germans — are emerging as big investors in India's booming textiles sector.

While Italian fashion garment manufacturing major Carrera has already firmed up plans to invest nearly Rs 1,000 crore in Maharashtra for setting up manufacturing units across multiple locations, another Italian group is carrying out feasibility studies for setting up a full-fledged `Italian Fashion Village' near Kochi in Kerala, industry players said.

The big draw, in the case of India, seems to be the skilled labour force. "Carrera was swayed into investing in Maharashtra largely on the merit of availability of skilled labour in the region, which has the largest number of powerloom units in the country.," an industry player said.

While the Carrera Group's foray into the country is expected to pave the way for other large Italian brands such as Gucci and Armani to kick-start operations in the country, the proposed `fashion village' in Kerala is likely to further intensify the interest generated among Italian entrepreneurs about the potential of developing India as a manufacturing base, industry players said.

A team comprising Italian textile manufacturers had already carried out several sorties to the country late last year before deciding on the "fashion village' in Kerala, which is expected to have several mills and even a textile institute.

Besides the two major investment proposals, Italian fashion apparel firm Benetton Spa , in collaboration with Benetton Holdings NV of the Netherlands, is planning to set up an integrated manufacturing unit in the country for producing knit fabric products.

According to Government sources, German investors have picked up stakes in trading firms Shiv Exports and Janan Exports, that deal in export of textile products, among other items. Danish speciality textile major Vestergaard Frandsen has also got an approval for setting up a unit for export of textile products.

Besides these firms, Cuthberts International Ltd of the UK has lined up FDI for setting up an export-oriented unit for the manufacture of other fabrics. Somex SA of Belgium is planning to set up a wholly owned subsidiary for export of textile products.

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