Two of Sri Lanka's most respected business groups, the multinational Hayleys conglomerate and Brandix Lanka, the country's largest apparel exporter, signed a Memorandum of Understanding to collaborate in the development of Brandix Apparel City, a vertically-integrated apparel manufacturing park in India.
Under the agreement, Logiwiz, the Hayleys Group's third party logistics specialist will design, construct and manage a 20-acre central logistics hub for the 1000-acre Brandix Apparel City at Atchyuthapuram in Andhra Pradesh, providing a comprehensive logistics solution for the park's manufacturing entities.
The logistics hub, estimated to cost US $ 15 million (about Rs 1.6 billion at current rates) will be built and managed by Logiwiz in India where it currently manages logistics centres for several multinational clients in Bangalore, Hyderabad and Kolkata.
Addressing media after the signing of this milestone agreement, Brandix CEO Ashroff Omar said that Logiwiz's proven expertise in end-to-end logistics would be key to the smooth functioning of the Brandix Apparel City, one of the largest and most advanced manufacturing parks in the world that envisages a 'fibre-to-store' model for some of the world's top apparel manufacturers.
He said the Apparel City, the first of its kind in India and perhaps in the world, is expected to be ready for occupation in August 2007, by which time the bulk of infrastructure requirements under the first phase of the project would be in place.
Hayleys Chairman N. G. Wickremeratne said his Group was pleased to have been selected as the logistics partner for this bold and visionary venture, which would lead to a supply chain solution that redefines real value in the apparel business. "There are synergies and similarities between Hayleys and Brandix that will do justice to this mega undertaking in India," he said. "The Hayleys Group is Sri Lanka's first multinational and we understand the factors that make expansion beyond the country's borders imperative to maximise returns to the national economy," he said.
There are synergies and similarities between Hayleys and Brandix that will do justice to this mega undertaking in India
N. G. Wickremeratne, Chairman-Hayleys
The state-of-the-art hi-tech logistics hub that Logiwiz India will set up at Brandix Apparel City will facilitate the flow of materials and information pertaining to raw materials, semi-finished and finished garments within the apparel park. The services offered will include storage and handling of fabrics, accessories and finished garments and a range of value added services such as centralized fabric cutting facility and garment finishing areas and transport management. The logistics hub with its own inland container depot will be designed to world-class standards incorporating the best of storage and handling solutions for apparel and backed by best of breed logistics software systems.
The Brandix Apparel City aims to build capabilities in spinning, fabric, accessory and apparel manufacture supported by services such as logistics, training facilities, laboratories and other ancillary requirements, making it a fully-integrated one-stop-shop. When fully functional, Brandix Apparel City will generate more than 60,000 jobs and act as a strong catalyst for the development of the regional economy.
Brandix pioneered the concept of total solutions in the Sri Lankan apparel industry and is Sri Lanka's largest exporter with a consolidated annual turnover of over US$ 300 million. Its corporate philosophy is to deliver innovative products from concept-to-shop, faster, better and at competitive prices. Brandix has pursued an aggressive growth strategy to counter the challenges of the post quota regime. Over the last three years it has invested Rs 3.1 Billion and in the last year alone the Group has invested more than Rs 1.1 Billion to expand its Sri Lankan operations.
A leader in third party logistics focusing on People, Process & Technology, Logiwiz offers a comprehensive range of logistics solutions focused on adding value to clients' Supply Chain Management through cost reduction, allowing clients to focus on the core business functions and improving service delivery to end consumers. Through its modern distribution centre in Sri Lanka, Logiwiz services several multinational clients including Caltex, Coates Thread, Cipla, GlaxoSmithKline, Huawei, IBM, Mead-Johnson and Proctor & Gamble. And in India Logiwiz provides a range of value added logistics services to several MNCs such as Acer Computers (computer parts), Molex (network equipment), American Power Corporation (UPS systems) and Sigma Aldrich (pharmaceuticals).
Logiwiz is a subsidiary of Hayleys Advantis Ltd, which encompasses the transportation businesses of the Hayleys Group.