The Hindu : Business : Tirupur exporters eye Uzbekistan

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Friday, Jun 15, 2007
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Tirupur exporters eye Uzbekistan

Staff Reporter

Keen to set up textile mills in that country

TIRUPUR: Impressed with the offer by the Uzbekistan authorities, the 16-member trade delegation comprising knitwear exporters and spinners from Tirupur which visited that country between June 8 and 13 is exploring possibilities of setting up textile units there.

Tirupur Exporters' Association President, A. Sakthivel, who led the delegation, told The Hindu on Thursday that the Uzbek authorities had given details of ten sick units there.

"We are studying their proposals. After working out the modalities we may give an offer. We are contemplating setting up a company with 10 or 15 exporters and spinners as shareholders for the takeover move," he adds.

Stating that the trip was positive and fruitful, Mr. Sakthivel hoped that if the effort succeeded Tirupur garment units could import yarn and fabric from Uzbek.

The delegation visited many spinning mills, weaving and garment factories there. The Uzbek authorities have offered either joint venture or takeover of companies owned by Uzbekistan Textile Ministry with ``attractive terms and conditions," the association president said.

Uzbek, the sixth largest cotton producer in the world, was ready to offer discount in cotton price from Liverpool auction price. Cheap and disciplined labour, low electricity charges besides income tax holiday for investors and VAT refund for exporters were the attractive terms from the Uzbek side.

During the discussions, Rizikulor Rahmatullo, Minister of Textiles and Chairman of State Joint Stock Company, assured the delegation of all support.

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