Mauritius-based Aquarelle India to invest Rs 100 crore for new unit

Mauritius-based Aquarelle India, engaged in manufacturing men’s casual shirts, is planning to invest Rs 100 crore to set up a new manufacturing unit outside Bengaluru, a top executive said.

Talking to Deccan Herald, Aquarelle India Deputy Executive Director Nagesh Badida said, “As of now, we have four units in Bengaluru (two in Jigani industrial area, one each on Bannerghatta Road and Hennur Road), employing around 2,500 people. We are planning to set up a new unit outside Bengaluru. We are awaiting final approvals, as the project has been delayed by almost a year. We are planning to invest Rs 100 crore in the current financial year.”

Aquarelle, which is part of CIEL, formerly known as Deep River Investment (DRI), follows the July to June financial year. The company aims to hire 2,500 people by setting up a new unit. The new unit, to be spread over 5.5 acres, will feature 850 buttonhole sewing machines.

The company currently has the capacity to produce 3.5 million shirts per year and plans to double the capacity within two years. “We aim to position ourselves in the upper segment of the market, catering to brands like Diesel, CK, Tommy, Esprit, Ben Sherman, etc. by investing in the design-to-deliver concept,” Badida added.

Asked why they are moving out of Bengaluru, Badida said, “The attrition rate is higher in metros when compared with small cities. We lose almost 1,000 people for every new shopping mall. We also hope to get more labour by moving to labour captive areas.”

When asked on the expectations from the government, Badida said, “Apparel industry needs training centres, as training rural people is a big challenge.”
On challenges faced in the global market, Badida said, “Duty-free access from Bangladesh, coupled with its competitive labour costs, is a major challenge for Indian exporters.The Indian government has to realise the potential of this segment and push for duty-free access to Europe.”

On asked why a location like Peenya was not working for them, especially after the Metro has ushered in increased accessibility, Badida said, “We never preferred Peenya due to the cluster of factories where labour keep crossing floors owing to competition between various companies.”

The company has units in Mauritius producing around 2.5 million shirts per year with major exports to the US. “We cater to top brands from there in the US like J Crew, Dillards, Eddie Bauer, Joseph Abboud, Men’s Wearhouse, and others. We also have the capacity of three million units in Madagascar with one factory in Antananarivo and another in Antsirabe.

“Production in India began in 2005 with a very conservative start of 500 shirts per day and today, we are doing 15,000 shirts per day. From India, 80 per cent of the shirts are exported majorly to Europe, the US, and Gulf. With the remaining 20 per cent, we cater to the domestic market too,” Badida added.