The Hindu : Tamil Nadu News : Exporters explore possibilities of setting up mills in Uzbekistan

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Friday, Jun 15, 2007
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Tamil Nadu

Tamil Nadu

Exporters explore possibilities of setting up mills in Uzbekistan

M. Gunasekaran

TIRUPUR: Impressed with the offer by the Uzbekistan authorities, a 16-member trade delegation comprising knitwear exporters and spinners from Tirupur, which visited the 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 10 sick units there.

Proposals

“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 share holders for the takeover move,” Mr. Sakthivel said.

Stating that the trip was very fruitful, he 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 ventures or takeover of companies owned by the Uzbekistan Textile Ministry with “attractive terms and conditions,” he further said.

Uzbek, the sixth largest cotton producer of 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, promised the delegation all support.

Asked whether import of yarn and fabric was cost-effective, Mr. Sakthivel said the garment exporters could still save some money considering all other benefits.

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