The Hindu Business Line : Growth-Link plans to set up Rs 300-crore SEZ in TN

New wear
Production at the SEZ is expected to start in end-2007 or early 2008.
Initially, over 5,000 people will be employed and the number would triple in phases.
Production capacity will be about 2,00,000 pairs a month

Chennai , Sept. 19

Growth-Link Overseas Co of Hong Kong plans to set up a Rs 300-crore special economic zone for footwear and related products in Tamil Nadu.

Growth-Link's Director, Mr Peter D. Nickerson, told presspersons after signing an agreement with the State Government that the company has sought over 275 acres land at Cheyyar (Tiruvannamalai District) with option for an additional 225 acres.

The SEZ will attract investments over Rs 300 crore from the company, an original equipment manufacturer for a range of international brands, and other components suppliers who are expected to set up shop, he said.

Production at the SEZ is expected to start in end-2007 or early 2008.

Initially, over 5,000 people will be employed and the number would triple in phases. Production capacity will be about 2,00,000 pairs a month and over the next 3-5 years increased to 8,00,000 and reach a full capacity of about a million pairs. According to government officials, Growth-Link manufactures shoes for a range of international brands including Nike.

An official press release said that the agreement signed in the presence of the Chief Minister, Mr M. Karunanidhi, provides for Growth-Link and group companies to set up the SEZ with investments of over Rs 300 crore.

Growth-Link is a subsidiary of Feng-Tay, Taiwan, which has manufacturing facilities in China and Vietnam.

Feng-Tay has a total capacity of about 50 million pairs of shoes a year and has a turnover of $770 million.

According to industry sources this will be the second SEZ in Tamil Nadu for the footwear industry.

The first one is being set up by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) at Irrungattukottai on the Chennai-Bangalore route about 35 km from here. SIPCOT is in the process of calling for tenders for common infrastructure facilities.

Also in the pipeline is a components park for footwear industries next to the SEZ being promoted by SIPCOT.

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