Indian companies are finding it beneficial to operate from Ethiopia. Some big textile and garment manufacturers have entered the African country in recent times, these include Raymond and Arvind.

Arvind has set up seven apparel factories at Hawassa Industrial Park in Ethiopia, covering a total area of 13.5 acres. Arvind has two more factories in Ethiopia outside the park. These facilities export products to the US and Europe. With the new facilities in the industrial park, the total output would go up to 30 million pieces of garments.

Several Tirupur-based garment manufacturers are also attracted by the prospects in Ethiopia. These include: SCM Garments, the export arm of Chennai Silks, Jay Jay Mills, Best Corporation and KPR Mills.

SCM Garments is setting up a 500-machine garment unit in Ethiopia. Best Corporation is also setting up a 1,000-machine factory at Rs 30 crores. Power and labor is cheap in Ethiopia. Moreover, Ethiopia has become proactive towards attracting investments. It offers a plug and play facility for investors and provides all infrastructure amenities, including buildings.

While exports from India invite duties ranging between 12 to 15 per cent, and in some categories, up to 25 per cent, Ethiopia has secured easy access to major markets like the US, Canada and the EU at lower or nil duty.