Ciel Textile Ltd is taking bold measures to get more and more customers. The group comprising Aquarelle (shirt manufacturer), Floréal Knitwear (pull-over producer) and Tropic knits (T-shirt maker) has made a first step towards eventually establishing itself in India and China. And, contrarily to assumptions, the setting-up of production sites in those countries is not due to cheaper labour costs.

India and China have other advantages than cheaper labour costs to offer, the more so as Ciel Textile already has three factories in Madagascar where labour is among the cheapest worldwide. But, as Madagascar proved quite unstable with political and social problems in 2001, India could become like a ?lifeline? for the Mauritian group.

Speaking of their future establishment in India, Eric Dorchies, Aquarelle?s general manager, explains, ?The first goal is to be established in one of the two world poles of the textile clothing sector, which are India and China. The main purchasers such as Gap have left Mauritius for India. We want to be closer to these purchasers.?

<B>Mauritius still competitive</B>

The shirt manufacturer is opening a first factory in India on 10th May; an Indian businessman will provide the premises and equipment while the Mauritian company will supply its know-how, management and marketing skills to ensure the success of this future company. But Aquarelle doesn?t intend to stop there; it will open a second factory, specialising in high-quality shirts, in September. The production capacity of the factories will start from 20,000 monthly and gradually increase to around 1,8 million a year.

The Mauritian company is also attracted by the fact that raw materials are more accessible if the factory is already in India than if all production sites remain here. But Aquarelle?s management is already aware of the difficulties the company could face in India ? particularly the long delivery time. This is why he recommends a gradual and cautious establishment there. This is probably why the main production will remain in Mauritius ? especially for high-quality shirts which require a short delivery time.

With the same aim, which is to get closer to raw materials, Floréal Knitwear has already started partnership with a Chinese factory. By sending some orders to China, Floréal Knitwear also hopes to increase its production capacity.

It seems that Tropic Knits is not in such a hurry to delocalise its production. François Eynaud, the company?s general manager, is still confident about the future of T-shirt making in Mauritius. He believes Mauritius is still competitive and that there is no need to move elsewhere for the moment.