Gujarat-based firms are going all out to tap the growing African markets. While textile conglomerate Arvind is planning a new plant in Ethiopia, Alembic Pharmaceuticals, Sanghi Industries and even smaller firms like ADP Packaging are bullish on Africa.
Industry experts term Africa as the new destination for future growth and Gujarati entrepreneurs know the potential of the continent.
Arvind is mulling a denim manufacturing plant in Ethiopia, which has caught the fancy of Indian textile players. Kanoria Chemicals and Industries, which runs a chemical division in Ankleshwar, is in the process of setting up a denim plant with an initial annual capacity of 12 million meters in the African country. City-based Cadila Pharmaceutical has been present in Ethiopia since long.
Alembic Pharmaceuticals has entered into a joint venture with Adwiya Mami SARL Algeria through its subsidiary Alembic Global Holding. The north African country has a pharma market size of $3 billion.
Sanghi Industries too is setting up a cement plant in Kenya. Ahmedabad-based ADP Packaging has commissioned its packaging material plant in Ethiopia. It plans to manufacture more products at its Ethiopian plant.
"Ethiopia is as safe as Ahmedabad, competition is lower and margins are high. The Ethiopian government is focusing on attracting investments," said Devang Shah, MD, ADP Packaging. Companies such as Nylo Polymers and Jivadani Extrusion, too, have entered Ethiopia.
Apart from tax incentives offered by the governments in Ethiopia and Rwanda, the African continent is seen as a strategic location to be present in. "After Europe, Asia developed and now it is the turn of Africa. There is a growth opportunity in the African nations," said Sunil Parekh, advisor to many companies.
Many African countries have growing middle class, which want quality branded products. Also, some African countries have duty-free bilateral treaties with Europe, US and other nations. Competitive labour and energy costs as well as excellent governance standards are luring corporate firms to Africa.
Industry experts term Africa as the new destination for future growth and Gujarati entrepreneurs know the potential of the continent.
Arvind is mulling a denim manufacturing plant in Ethiopia, which has caught the fancy of Indian textile players. Kanoria Chemicals and Industries, which runs a chemical division in Ankleshwar, is in the process of setting up a denim plant with an initial annual capacity of 12 million meters in the African country. City-based Cadila Pharmaceutical has been present in Ethiopia since long.
Alembic Pharmaceuticals has entered into a joint venture with Adwiya Mami SARL Algeria through its subsidiary Alembic Global Holding. The north African country has a pharma market size of $3 billion.
Sanghi Industries too is setting up a cement plant in Kenya. Ahmedabad-based ADP Packaging has commissioned its packaging material plant in Ethiopia. It plans to manufacture more products at its Ethiopian plant.
"Ethiopia is as safe as Ahmedabad, competition is lower and margins are high. The Ethiopian government is focusing on attracting investments," said Devang Shah, MD, ADP Packaging. Companies such as Nylo Polymers and Jivadani Extrusion, too, have entered Ethiopia.
Apart from tax incentives offered by the governments in Ethiopia and Rwanda, the African continent is seen as a strategic location to be present in. "After Europe, Asia developed and now it is the turn of Africa. There is a growth opportunity in the African nations," said Sunil Parekh, advisor to many companies.
Many African countries have growing middle class, which want quality branded products. Also, some African countries have duty-free bilateral treaties with Europe, US and other nations. Competitive labour and energy costs as well as excellent governance standards are luring corporate firms to Africa.
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