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BANGLADESH: Arvind invests $60 mln, sets up denim plant in Bangladesh

Bangladesh: Arvind Ltd, textiles maker, said on Monday it plans to to set up a denim manufacturing plant in Bangladesh with a total investment of $60 million over a period of 3 years, with an aim to increase the denim manufacturing plant capacity to 140 million meters. 

For this plan, Arvind is entering into a joint venture with Nitol Group of Bangladesh. Nitol will have 20 percent stake in the joint venture company. 

The phase I of 10 million meters will be set up over next 12 months with an investment of about $25 million. 

"Bangladesh being least developed country, garments exported from Bangladesh. The wage cost in Bangladesh is amongst the lowest in the world. We shall be manufacturing high quality Denim fabric to cater to requirement of European countries. Since we are already exporting 36 million meters of Denim to Bangladesh annually, we have ready market availiable and hence the propose plant shall be profitable from day one," said Jayesh Shah, Director and CFO of Arvind. 

In the Bombay Stock Exchange, the shares of the company are trading currently up by 2.32 percent at 44.05 rupees on Monday.

Source: ynfx • News Courtesy: BharatTextile.com