Chinese textile companies keen on setting up units in Gujarat

Gandhinagar: China's textile companies have evinced interest in setting up manufacturing units in Gujarat, a State Government official said here on Saturday.

Looking to partner with Gujarat-based companies, Chinese companies have also shown interest in investing in infrastructure projects, heavy engineering and equipment, renewable energy and the auto sector. Memorandums of Understanding (MoUs) in this regard are expected to be inked during the next Vibrant Gujarat Summit in January 2013.

This follows the November 2011 visit of the Gujarat Chief Minister, Mr Narendra Modi, to China.

With a huge increase in the production of cotton in Gujarat, textile industries of China are likely to set up their units in the State to reduce the transportation cost of raw material as well as finished products, which they sell in various markets of Asia, the Gulf region and Europe, the official said.

Business Delegation
The China Council for Promotion of International trade (CCPIT), the apex agency responsible for promoting Chinese business and industry, had invited a 15-member delegation from Gujarat to visit Beijing this week to interact with their Chinese counterparts.

Also, the China Enterprise Forum has invited the delegation to address the CEOs and heads of top Chinese companies at their annual China Global Outbound Investment Summit held at Beijing on June 14–15. The summit was supported by China's Ministry of Commerce.

The Indian Embassy in Beijing also organised a road show in partnership with the CCPIT, which is a partner of the Confederation of Indian Industry (CII).

After Mr Modi's visit, TBEA, China's largest power equipment maker, had agreed to invest $400 million to set up a mega green energy park in the State.

During the visit, Beijing University of Technology showed interest in collaborating with the Centre for Environment Planning and Technology University, Ahmedabad, on urban planning, high density habitat development, industrial and infrastructure planning for modern industry and heritage conservation.

Also, the University of Nottingham, China Campus, proposed to sign MoUs with CEPT University for collaboration on large-scale infrastructure and logistics.

CEPT University will send 30 students to China in January next year to conduct joint study and prepare master plans on urban development, particularly for Ningbo, a large industrial port city, the official pointed out.