Island
February 27, 2007
Government should encourage overseas investment - Hayleys
Chairman
The Government should encourage Sri Lankan companies to
invest overseas. However, at present the procedure for remitting
of funds is rather complicated and not encouraging. The
reason is that the Controller of Exchange is not a businessman.
Trade and investment is a two-way process. When funds are
taken out for purposes of investment, a return of profits
follows automatically. This is how business operates and
a suitable climate must be created for it. There is no point
in claiming to be world class and remaining within Sri Lanka.The
true test of proficiency is only possible when international
competition is faced. It also brings in more revenue for
Sri Lanka and also hones the skills of Sri Lankan managers,
said Chairman of the Hayleys Group of Companies, N.G. Wickremeratne.
He was addressing the media at the signing of the MoU between
Brandix and Hayleys for the setting up of a centralized
logistics hub in the Brandix Apparel City in India.
Under the agreement, Logiwiz, the Hayleys Group logistics
expert will design, construct and manage a 20-acre central
logistics hub in the 1000-acre Brandix Apparel City at Atchyuthapuram
in Andhra Pradesh. The hub is expected to cost US $15 million
and will provide end-to-end logistics, a critical factor
for ensuring that the Brandix Apparel City is one of the
most advanced manufacturing parks in the world, which provides
a fibre-to-store model.
The state-of- the- art hi-tech facility will facilitate
the flow of materials and information pertaining to raw
materials, semi-finished and finished garments within the
park. The services offered will include storage of fabrics,
accessories and finished garments and a range of value added
services such as centralized fabric cutting facility and
garment finishing areas and transport management.
The logistics hub will also have its own inland container
depot and will incorporate the best of storage and handling
solutions for apparel backed by the best of breed logistics
systems.
The Brandix Apparel City also aims to build capabilities
in spinning, fabric, accessory and apparel manufacture supported
by services such as logistics, training facilities, laboratories
and other ancillary requirements making it a fully integrated
one-stop-shop.
When fully functional, the apparel city will provide more
than 60,000 jobs and also act as a catalyst for the development
of the regional economy, added CEO of Brandix Lanka Limited,
Ashroff Omar.
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Daily
News
February 28, 2007
Hayleys, Brandix Lanka link-up to develop India's Brandix
Apparel City
MoU: Two of Sri Lanka's most respected business groups,
the multinational Hayleys conglomerate and Brandix Lanka,
the country's largest apparel exporter, signed a Memorandum
of Understanding (MoU) to collaborate in the development
of Brandix Apparel City in India.
Under the agreement, Logiwiz, the Hayleys Group's third
party logistics specialist will design, construct and manage
a 20-acre central logistics hub for the 1000- acre Brandix
Apparel city at Atchyuthapuram in Andra Pradesh providing
a comprehensive logistics solution for the park's manufacturing
entities, CEO- Brandix Lanka Ashroff Omar said.
Addressing media after signing this milestone agreement
Omar said that Logiwiz's proven expertise in end-to-end
logistics would be key to the smooth functioning of the
Brandix Apparel City, one of the largest and most advanced
manufacturing parks in the world that envisages a fiber-to-store
model for some of the world's top apparel manufactures.
He said that Apparel City, the first of its kind in India
and perhaps the world, is expected to be ready for occupation
in August 2007, by which time the bulk of infrastructure
requirements under the first phase of the project would
be in place. Omar said this would enable to plug and place
solution for Brandix and focus on the core business without
considering logistics.
Hayleys Chairman N.G.Wickremeratne said that his group
was pleased to have been selected as the logistics partner
for this bold and visionary venture, which would lead to
a supply chain solution that redefines real value in the
apparel business.
“There are synergies and similarities between Hayleys and
Brandix that will do justice to this mega undertaking in
India, he said.
Wickremeratne said the Hayleys Group is Sri Lanka’s first
multinational and understands the factors that make expansion
beyond the country’s borders imperative to maximize returns
to the national economy. |
Hayleys,
Brandix to build $15 mn logistics hub in Apparel City, Andhra
Pradesh
Say Govt. needs to push private firm expansions overseas
By Sunimalee Dias
Sri Lanka needs to push local companies to expand overseas
in achieve the targets it has set, a head of a multinational
conglomerate said yesterday.
The private sector needs to not only operate within Sri
Lanka, but to ensure development of the country they need
to move overseas because it is only those who work and compete
with global products who could survive in the market, Hayleys
Ltd. Chairman N.G. Wickremeratne said. These observations
were made following the signing of an MoU between Hayleys
and Brandix to develop Apparel City in India.
This would also provide increased opportunities to add
to the country's foreign remittances, generate more employment,
provide new exposure and skills development to Sri Lankans,
he explained.
It is in this respect, he emphasized on the need for the
government to ensure that the private sector moves overseas
to achieve the growth targets it has set out for the country.
Meanwhile, Hayleys and Brandix Lanka, signed a MoU to collaborate
in the development of Brandix Apparel City, a vertically-integrated
apparel manufacturing park in India.
The logistics hub that will be designed, constructed and
managed by Logiwiz, the Hayleys Group's third party logistics
specialist and is estimated to cost US$15 million (about
Rs.1.6 billion).
This will be located in a 20-acre central logistics hub
for the 1000-acre Brandix Apparel City in Andhra Pradesh,
providing a comprehensive logistics solution for the park's
manufacturing entities.
Brandix CEO Ashroff Omar highlighted this as a huge step
taken by the company with Logiwiz's proven expertise in
end-to-end logistics key to the smooth functioning of the
Brandix Apparel City which envisages a 'fibre-to-store'
model for some of the world's top apparel manufacturers.
The state-of-the-art hi-tech logistics hub that Logiwiz
India will set up at Brandix Apparel City will facilitate
the flow of materials and information pertaining to raw
materials, semi-finished and finished garments within the
apparel park.
The services offered will include storage and handling
of fabrics, accessories and finished garments and a range
of value added services such as centralized fabric cutting
facility and garment finishing areas and transport management,. |
Sri
Lanka's Hayleys adds 'plug and play' touch to Brandix apparel
park in India
February 27 (LBO) A 15-million dollar logistics centre
which will speed up the flow of raw material and finished
products at Bradix's industrial park in India, would make
the park more attractive to manufacturing units, officials
said.
A 200,000 square feet facility with an inland container
terminal, computer controlled storage and handling of raw
material, finished and semi-finished garments is expected
to be ready by the end of 2007 at the 1,000 acre Visag Apparel
City in Visakhapatnam.
"We will be able to offer a plug-and-play solution to any
textile or apparel firm that comes to the park," Brandix
CEO Ashroff Omar told journalist here.
Brandix is a top apparel maker based in Sri Lanka with
annual revenues of 300 million dollars.
Omar says the logistics centre would charge transaction
based fees allowing manufacturing units with 'lean inventories'
to gain cost efficiencies.
The facility may also offer centralized cutting and fabric
finishing services which can push down costs further.
The logistics facility, which can be expanded to 400,000
square feet as the 1,000 acre industrial park fills up with
manufacturing unit is designed and built and managed by
Logiwiz, a logistics specialist of Sri Lanka's Hayleys,
a diversified conglomerate.
"With the world growing as it is, with so much emphasis
on the services sector, it was inevitable that Hayleys would
also begin to add significant value through its people in
the services sector," Hayleys Chairman N G Wickremaratne
said.
Logiwiz says it already provides logistics services to
Acer Computers (computer parts), Molex (network equipment)
and American Power Corporation (UPS systems) and Sigma Aldrich
(pharmaceuticals) with operations in Bangalore, Hyderabad
and Kolkata.
The logistics centre is a 70/30 joint venture between
Hayleys and Brandix with the first phase costing around
7 million US dollars.
The Vizag park would be ready for occupation by August
2007, when most of the infrastructure in its first phase
would be in place.
Brandix is also building a 200 acre industrial park in
Sri Lanka at Horana. The firm says its revenues are expected
to grow by 28 percent in the year to March. . |
Sri
Brandix-Hayleys in logistics deal at Indian apparel zone
By Dilshani Samaraweera
Sri Lanka’s Brandix and Hayleys groups are gearing to start exporting garments to the world - from India.
Last year, Brandix, Sri Lanka’s biggest exporter, signed an agreement with the Indian government to set up a 1,000 acre apparel manufacturing zone in Andhra Pradesh, India. Known as the Brandix India Apparel City (BIAC), the manufacturing zone is designed to be fully vertically integrated, producing garment inputs as well as ready-made garments. The city will also house training and laboratory facilities and other ancillary facilities, making it a one-stop-shop to manufacture clothing. When fully occupied by manufacturers of garment inputs and ready –made-garment producers, the total investment value of the apparel city is expected to hit US$ 1 billion. These investments are to be pulled into the apparel city over the next six to seven years.
As part of the development of the apparel city, this week Brandix signed an agreement with the Hayleys group to supply logistics for the Indian industrial zone.
“This particular venture is very innovative because now we are able to offer an almost plug-and-play solution to any industrialist locating in the apparel city. Manufacturers will be able to focus on their core business and not worry about the logistics,” said Brandix CEO, Ashroff Omar.
The Indian apparel city is designed to house spinning facilities and factories to produce fabric, accessories, garment embellishments and garments. The centralised logistics system is expected to ensure smooth interlinking of these production activities.
The logistics services will be provided for the apparel city by Logiwiz - the Hayleys group’s third party logistics specialist. Under the US$ 15 million Brandix–Hayleys joint venture logistics agreement, Logiwiz will build and operate a logistics hub for the Andhra Pradesh apparel city. The logistics services hub will be located within the zone and will provide a range of services from storage, handling and transport of goods, to extension services like a centralised fabric cutting facility and a garment finishing area.
“We can facilitate movement within the apparel city and if goods are being sourced from India, we can also facilitate movement of these goods to the apparel city. Since 70% – 80% of the production is for export, we will also operate an inland container depot,” said Director, Logiwiz, Chandima Allis.
Construction work on the 20 acre logistics hub is due to begin in June this year to be operational in early 2008. The apparel city itself is still under construction and is expected to be ready for occupation by August this year. Commercial production from the city is due to begin in early 2008.
Meanwhile the Hayleys group says it plans to expand its overseas presence. “Hayleys’ vision is to be a regional leader and greater regional presence is now also a client requirement. We started operations in Bangladesh in 2006 and in India, we are already operating in Bangalore, Hyderabad and Kolkata and we are planning on expanding operations into other Indian metros,” said Allis.
The head of Hayleys points out that expansion outside the country is the key to the future. “The Hayleys group is Sri Lanka’s first multinational and we understand the factors that make expansion beyond the country’s borders imperative, to maximise returns to the national economy,” said Hayley’s Chairman, N G Wickremeratne.
“For the development of our country I do not think it is good enough to operate only in Sri Lanka. Only those who can compete effectively with other countries will be able to survive in the future. Expansion abroad will give new exposure and will generate new employment opportunities and will also increase export earnings for the national authorities,” said Wickremeratne.
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