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Home > Business > PTI > Report

JC Penney to double outsourcing from India

April 28, 2004 17:20 IST

International retailing giant JC Penney plans to double outsourcing from India once the multi-fibre agreement comes to an end next year.

"We are optimistic and expect the Indian textiles industry to grow. We have identified India among countries that we will focus our efforts on," JC Penney country head Adil Raza said at a seminar during the ongoing Lakme India Fashion Week.

The focus on India was in view of phasing out of the quota regime from January 1, 2005, he said.

"Retailers want to spread their risks and not rely only on China for sourcing their requirements when the quota regime ends," Raza said.

Earlier, JC Penney had sent a team to India to study the textiles industry. The retailing giant had said that it would enhance its apparel sourcing from India to about $600 million in the next 2-3 years.

"Outsourcing in apparel, including home textiles, is expected to increase three times from the current level of $200 million," Rod Brokins, vice president and director of strategic sourcing, JC Penney, had told reporters in New Delhi in February this year.

He said the retailer was constrained in sourcing from India due to the existing quota regime and after the phase-out, would prefer India to China, as Beijing had joined World Trade Organisation later and still had to face safeguard provisions.

In line with the company's plans, a team of 50 sourcing officials were in India, visiting main textile centres in Ahmedabad, Ludhiana and Tirupur, Brokins said.

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