Sri Lanka to develop apparel city in Andhra Pradesh

The Sri Lankan government is to implement an innovative programme of developing apparel cities in neighbouring countries with private sector assistance. This was a concept mooted by Minister Anura Bandaranaike.

A leading garment manufacturer and exporter from Sri Lanka will develop an apparel city near Andhra Pradesh's Coastal City of Visakhapatnam that will create some 60,000 jobs over four years under this programme, official sources told Lankapuvath.

Brandix Lanka Chief Executive Officer Ashroff Omar and Industries and Commerce Secretary B. Krupanandam signed a Memorandum of Understanding here Saturday in the presence of Chief Minister Y.S. Rajasekhara Reddy under the MOU, Brandix and the Indian State Government will form a special purpose vehicle (SPV) to set up an Apparel City with integrated and support industries.

Brandix will hold 76 percent of the equity and the State Government the remaining 24 percent. After Brandix achieves its target of creating 60,000 direct jobs, ownership will be transferred to the SPV. The proposed company will be developed in 1,000 acres of land at Atchyuthapuram Mandal of Visakhapatnam district.

Reddy asked the Brandix to start their operations immediately with at least 3,000 to 4,000 people from Andhra Pradesh initially.

Brandix officials said they were keen to source garments from India by utilising the special privileges offered by the state government under the special economic zones and technology upgradation fund schemes.

The Lankan company will attract globally acclaimed investors to the Apparel City and facilitate development of Linked Industries. It will also transfer knowledge and technology as applicable.

(Lankapuvath)

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Govt signs MoU with Brandix Lanka

Sri Lanka-based Brandix Lanka Limited, in association with the Andhra Pradesh government, is planning to develop a Garment City in an area of 1,000 acres at Atchyuthapuram mandal of Visakhapatnam district.

CEO of Brandix Lanka Limited Ashroff Omar, and B. Krupanandam, secretary, industries and commerce department, on behalf of the state government, signed an MoU in the presence of chief minister Y. S. Rajasekhara Reddy on Saturday.

Brandix will hold 76 per cent of the equity while the state government will hold the remaining 24 per cent equity in the project.

The chief minister has urged the Sri Lankan company to start its operations immediately and employ at least 4,000 people initially.

Brandix and the Andhra Pradesh government will form a special purpose vehicle (SPV) for setting up this export-oriented apparel city with integrated and support industries.

Brandix will create sustainable employment for a minimum of 60,000 people over a period of four years from the date of formation of the SPV, a press release said.

Brandix Lanka Limited will source garments from India by utilising the special privileges offered by the state government under the special economic zones bill and the Technology Upgradation Fund scheme among others. (Business Standard)