Brandix and Ocean Lanka in US $ 20 million joint venture
MOU: Sri Lanka’s apparel sector giant Brandix will collaborate with
Sri Lanka’s largest knit fabric manufacturer Ocean Lanka to invest US$
20 million in a joint venture knit fabric mill at the Brandix Apparel
City (BAC) in Andhra Pradesh, India.
Ocean Lanka is a joint venture partnership of Fountain Set (Holdings)
Limited, Hong Kong, Brandix and the Hirdaramani group.
A Memorandum of Understanding (MoU) signed in Colombo by Brandix CEO
Ashroff Omar and HA Chung Fong, Chairman, Managing Director and Founder
of the Fountain Set Group, the major shareholder in Ocean Lanka,
envisages the establishment of a state-of-the art manufacturing unit.
Incorporated as Ocean India, the mill will serve the needs of apparel
manufacturing units in BAC and will be the largest knit fabric mill in
the South Asia region.
Commenting on this new venture, Brandix CEO Ashroff Omar said: “Ocean
Lanka’s interest in investing in the BAC is a validation at the highest
level of the potential for this mammoth apparel manufacturing city.
Major international apparel manufacturers and other supply chain
partners have expressed interest in setting up at BAC.
The presence of one of the world’s largest knit fabric manufacturers
meets one of the biggest requirements of these stakeholders and
underwrites the success of the project.” Fountain Set Chairman and
Managing Director HA Chung Fong said: “The BAC is one of the most
exciting new manufacturing locations in the world, and we are pleased to
go in with a partner of the calibre of Brandix to set up this new
manufacturing unit in India.”
Ocean Lanka is the latest supply-chain partner to join BAC,
contributing to the Park’s proposition of a complete vertically
integrated solution.
The joint venture agreement between Brandix and Ocean Lanka was
signed just three weeks after an agreement between Brandix and the
Hayleys Group to set up a US $ 15 million central logistics hub for the
Apparel City.
Based on an innovative ‘fibre-to-store’ concept, BAC is the first of
its kind in South Asia, with capabilities in spinning, fabric, accessory
and apparel manufacture supported by services such as centralised
logistics, training facilities, laboratories and other ancillary
requirements, making it a fully-integrated one-stop-shop.
Brandix pioneered the concept of total solutions in the Sri Lankan
apparel industry and is Sri Lanka’s largest exporter with a consolidated
annual turnover of over US$ 320 million. Its corporate philosophy is to
deliver innovative products from concept-to-shop, faster, better and at
competitive prices.
Brandix has pursued an aggressive growth strategy to counter the
challenges of the post quota regime. Over the last three years it has
invested USD 66 million (LKR 6.6 billion) and in the last year alone the
Group has invested more than USD 25 million (LKR 2.5 billion) to expand
its Sri Lankan operations, with investments of US $ 35 million (LKR 3.5
billion) in the pipeline.
A joint-venture partnership of Fountain Set (Holdings) Limited, Hong
Kong, Brandix and the Hirdaramani group, Ocean Lanka is Sri Lanka’s
largest weft knitted fabric manufacturer.
Fountain Set, the major shareholder is one of the world’s largest
circular knitted fabric manufacturers, supplying to over 40 countries to
internationally renowned retail brands.
|