Ahmedabad based textile titan Arvind Mills Ltd. has renewed its USD 66 million-investment proposal for setting up a high end denim fabric manufacturing factory in Bangladesh. The proposal has been stuck up for over a year due to political chaos in late 2006. In the improved law and order situation, they have evinced fresh interest to set up the production facility in Comilla Export Processing Zone (CEPZ).
“The investment will be the single largest from India which will consist 26 industrial plots in CEPZ. The company will produce around 30 million meters denim fabric a year. The company expects to generate employment for an estimated 1000 people that might go up later. They have increased the investment amount from the first postponed proposal placed in October 2006.
The potential entry of Indian textile group to Bangladesh has elicited guarded welcome from local textile entrepreneurs who favoured investments, but warned of possible “dumping”. ” We welcome foreign investment in the textile industry. But the government must make sure that Arvind exports its fabrics, not sells the same in the local market.” Mr. Towfique Hasan, secretary general of BTMA said. Arvind Mills, a concern of USD 500 million Lalbhai Group, is the second largest denim producer in the world.