Kanoria Africa Textiles, a wholly-owned subsidiary of Kanoria Chemicals & Industries Ltd., said on Tuesday that it has completed its integrated denim project in Ethiopia.
The unit, located about 50 km from capital Addis Ababa, has an annual capacity of 12 million metres, and has been set up at an investment of US$50 million (~INR 325 crore).
“The African textiles industry has huge potential for manufacturing and exports. Ethiopia is a US$51-billion economy but currently imports almost all of its textiles. This provides a significant opportunity to Indian companies,” said R.V. Kanoria, Chairman and MD of Kanoria Chemicals.
The project - in which Kanoria Chemicals holds an 80 per cent stake with the rest being held by Hong Kong-based Fung Capital - is expected to provide direct employment to 500 people and indirect employment to 20,000 in the garments sector.
The company expects to generate ~US$25 million (~INR 162.5 crore) annually through the project.