ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Export-Led Growth

Export-Led Growth? Hansavivek ITC, which entered the US market 5 years ago as an exporter of garments manufactured in the small scale sector, now proposes to participate in the rapid growth of US imports of ready- made garments from all over the world in the multi-billion dollar apparel market. The management feels that this objective can be achieved by organising a permanent base in that country. This will enable it to anticipate and respond to highly variable fashion trends and consumer preferences and harness US knowhow, expertise and technology in the field of creativity and design and market aggressively specially-designed branded products of Indian or other origins in a highly competitive market. For this purpose, a joint venture under the name and style 'David Page' has been incorporated in the state of Delaware, USA, with its headquarters in New York city, to operate as a wholesale importer of readymade apparel mainly manufactur ed in India and to market these products through the US network of prestigious retail outlets to US consumers. ITC proposes to invest in cash $ 104,000 which will confer 80 per cent stock holding in the US company. The company has obtained approval of the Overseas Investment Cell and is seeking approval of the Central government under section 372 of the Companies Act Among the other non-traditional businesses into which ITC has branched out, the hotels division has grown fast in three years. From a modest venture of one hotel in Madras, the division has now a chain of 12 properties and three more are under construction, The division holds out promise of further rapid growth in the coming years. According to a UN study, tourism, and within it the hotel business, is after all the largest single industry in the world. The UN economic experts have predicted that it will move into first place by the turn of the century, if not by the end of the eighties. The company has entered into a marketing services and reservations agreement with Sheraton International. The foods division has been able to maintain its position as one of the top 15 exporters of marine products. Pending clarification of government's policy in respect of the totality of deep-sea fishing and marine products, the company's trawler operations are being contained. For the time being. The general export division recorded a 35 per cent increase in the value of exports during 1978-79. It has added handwoven woollen ear- pets to the export product range. Bhadrachalam Paperboards, promoted by the company with an equality investment of Rs. 3-4 crores, is due 1 commence commercial production net month.

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