Slump in Euro market hits Vizag firms

By SNV Sudhir

Visakhapatnam, Feb 7, 2013: The slump in the European market that began in 2011 and fierce competition from firms in the neighbouring Bangladesh has left many apparel manufacturers and export units sick.  These units were set up in the apparel export park developed by APIIC in Gajuwaka,

Many units, now running in the Park and intended to export to the international markets like USA and many European countries, had to shift their focus towards domestic market and local needs.

The authorities feel that this change will remain until the global markets revive to curtail any industrial unrest and employees losing jobs.

With an objective to set up a separate industrial area for export-oriented apparel units APIIC developed the export park in an area of 145.60 acres in block E of industrial estate at Gajuwaka, with the layout approval by the Vuda in 2007.

The export park was aimed at providing self-employment to 15,000 workers and wage employment to 60,000. It was proposed to produce export goods worth Rs 130 crore after the completion of the park and achieving full occupancy.

Except for five plots of the total 70 plots, developed in the export park, were allotted to various apparel manufacturing and export units. However only 9 units have launched their operations and remaining allottees are yet to begin their work.  They remained non starters.  And as many as 8 units declared sick and downed their shutters unable to cope up with the operational costs without much export orders.

The apparel export park was developed at a cost of Rs 27.53 cr, with the union government contributing Rs 17 cr, the state government Rs 6.05 cr and the implementing agency, the APIIC, the rest.

 “We had to shift our focus to local needs due to this downtrend in global market which refuses to die down. Now, we are getting orders from PSUs and other large and medium industries to manufacture workers uniforms. We are doing this to keep ourselves afloat with hope that the international market conditions would improve and open up,” said owner of a manufacturing unit in the apparel export park in Gajuwaka.

The units in the export park manufacture T-shirts, formal and casual shirts, jeans, woman tops. They also deal any garments related to cotton, knit and woven fabrics.

The department of industries is also holding series of meetings and promotional programmes with overseas clients in improving the situation.

“Many firms are yet to start their operations. Department of industries is trying hard to keep them afloat,” APIIC Zonal Manager, Ramana Murthy told this correspondent.