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Indian Company to Build Africa’s Largest Cotton Mill in Ethiopia

shrivallabk pittie groupAn Indian company, ShriVallabh Pittie (SVP) group, is going to install Africa’s largest cotton mill in Ethiopia. The company will invest US$ 500 Millionfor the mill that is going to produce cotton yarn solely for export purpose.

Chairman of SVP, Vinod Kumar Pittie, told The Reporter about the financial scheme of the company. He said the Development Bank of Ethiopia (DBE) will cover 52 percent of the investment and the rest is to be covered through equity financing. Pittie further noted DBE will provide US$ 23 Million for the first phase of the project and SVP will bring US$ 22 Million. He also added the construction of the project has started on the 2nd of May.

Tadesse Haile, Minister of State for Industry, said on Thursday, April, 29, 2014, there is the need for the completion of the project as soon as possible. And reflecting on the same idea, Sileshi Lemma, Director General of the Ethiopian Textile Industry Development Institute, said the immediate realization of the project is important and it is a boost for the underperforming textile and garment industry.

SVP has acquired 50 hectares of land in the Amhara State, Kombolcha town. Neverthless this was not what SVP requested for at the beginning. According to the Mayor of Kombolcha, Abere Abera, SVP requested for a 100 hectares of land. But it is only 50 hectares that were approved by Amhara State for the first phase. Yet SVP will get the other 50 hectares in its second phase operation, Abere added.

When the company starts operation it is expected to create job opportunity for three thousand people directly and for 10 thousand individuals indirectly. It is also expected to produce 280 tones of yarn and spin per day.

SVP expects to earn US$ 400 Million from export of its products after it’s third year operation.

Source: The Reporter