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.

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.