Raymond is planning to set up a 2 million units per annum capacity plant in Ethiopia, at a total investment of US$100 million, to manufacture and export woolen-blended and cotton-blended jackets.
Currently, Raymond makes close to 2 million jackets at its Bengaluru facility - primarily woolen-blended and cotton-blended jackets - and exports some of them to the USA, Europe and Japan.
A more favorable duty structure and local incentives prompted Raymond to build a plant in Ethiopia.
Ethiopia has a 10-year duty-free trade agreement with USA, Europe and a preferential trade pact with Japan.
Raymond is also being provided land on long-lease by the Ethiopian government.
It will also get electricity at a price which is a third of the cost of power in India, apart from the labor charges, which are almost half of India.