Ambattur Clothing eyes acquisitions in Myanmar

Moving away from India, garment exporter Ambattur

Clothing is eyeing a base in Myanmar after building a manufacturing base in Bahrain, Jordan and Bangladesh. Ambattur Clothing, which has been in garment exports for over 30 years, once had 14 manufacturing facilities in the industrial area of Ambattur (Chennai), employing 13,000 people. But over a period of time, it now just has four plants with 4,000 employees. Ambattur today contributes only about 25 per cent of the company’s total annual production of 15 million pieces. So the plan is to gradually stop manufacturing in India, while the sampling, design and development would still be done here.

Getting skilled labour was the major issue the company faced in Ambattur with real estate, IT and auto companies setting up base there. Though the cost of labour in Bahrain or Myanmar is higher than India, the expat labourers are more productive and disciplined. The exporter made a turnover of Rs 500 crores last year. A chunk of this came from Bangladesh and Bahrain. India contributed just Rs 150 crores, a steep fall from Rs 650 crores in 2008-09.

Ambattur Clothing set shop in Bangladesh in 2007, while it has been in Bahrain for 10 years now. The company has two manufacturing units in Bangladesh (through acquisitions) and a green-field plant in Bahrain. It recently started operations at a green-field facility in Jordan. The company also owned the apparel brand ColorPlus, which was sold to Raymond in 2002.