| Date: |
13-10-2011 |
| Subject: |
India’s Garment Makers Flock to Dhaka |
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COIMBATORE: When B Jaichand found it difficult to get workers to start a large unit for making garments in Tirupur two years ago, he decided to open a factory in Bangladesh . His Jay Jay Mills already had units in Sri Lanka but the island nation no longer enjoyed duty-free concessions in major export markets . Besides duty-free benefits for the European market, Bangladesh offered a readily available workforce at wages about half of India's .
Chennai-based Ambattur Clothing also took the same route to Bangladesh in 2007. Nearly 50% of its $140 million exports are now done out of Bangladesh even as the share of shipments from Indian units dwindled to 25%. From just about 500 workers, the company, which also has a presence in the Middle East, now employs about 4,000 persons in Bangladesh.
The labour crunch is pushing exporters to Bangladesh , which has emerged as an attractive destination for producing garments. Indian garment makers have invested about $33 million (around Rs 165 crore) in Bangladesh since 2006, Bangladesh's Board of Investment data said.
Source : timesofindia.indiatimes.com
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