Classic Fashion, one of the largest Indian companies working in the sector of ready-made clothes, is considering establishing a new project in the Egyptian market to produce garments, with a capital of EGP 1bn, according to Tarek Kabil, the Minister of Industry and Trade.
Kabil explained that the plan is to start working on the project in January 2018 and start actual production by the end of 2018.
This came during Kabil’s meeting with a delegation from Jordan, headed by Sanal Kumar, the chairperson of the company. During the meeting, the projects of the company’s activity in Jordan and the United Arab Emirates (UAE) were demonstrated, in addition to future projects that the company seeks to undertake in the Egyptian market in the fields of textile, weaving, and agriculture.
According to Kabil, the industry of textile and weaving is one of the main four sectors receiving the highest priority in the strategy put forward by the ministry to develop industry and foreign trade during this current phase. He noted that it is considered one of the labour-intensive industries with more than one third of the workforce taking part in it.
He added that the new Investment Law provides huge guarantees and incentives for existing and new investments, pointing out that the investment climate in Egypt has become attractive to many international companies to invest in Egypt and benefit from the multiple advantages offered by the Egyptian market.
The ministry provides industrial lands for all projects and different fields at competitive prices, said Kabil, pointing out the possibility of establishing the company’s new project in the Suez Canal Economic Zone (SCZone)
According to Kumar, Classic Fashion aims to work in the Egyptian market, due to the huge economic reforms implemented by the Egyptian government currently and the promising investment and export prospects in the Egyptian market. He noted that the company is currently conducting preliminary studies of the project and is reviewing the different industrial zones in Egypt to determine a location for the project in preparation for starting the work early next year.
The company currently exports to a large number of international and regional markets, and the company’s products are distributed in the largest stores and retail outlets in a number of capitals and major cities across the world, said Kumar.