r-pac International Holding Co., the foreign investor in the new venture, is a company based in New York, USA, and is one of the largest label and packaging material suppliers to the global apparel industry. It currently has operations in over 25 worldwide locations including the Americas, Europe, Middle East and Asia, and currently enjoys an exceptionally large retailer contact base with particular access to the US market. With worldwide accreditation, r-pac International has also been experiencing continuous and steady growth in South Asian markets such as Bangladesh and India.
The company has a highly advanced manufacturing technology process including significant technological advances in RFID technology which is increasingly deployed in apparel packaging and its supply chain. These attributes coupled with the company’s innovative approach and intense focus on customer service has made it a preferred and leading supplier of apparel labels to the global apparel industry.
The local partner, Printcare Packaging Pvt Ltd, a fully-owned subsidiary of Printcare PLC, one of the largest and most sophisticated printing operations in Sri Lanka, is a leading provider of innovative printing and packaging services to export industries in Sri Lanka.
Pradeep Sugathadasa, Director, Royal Pac Printcare, said that this collaboration between the two majors is a great opportunity to add value to the apparel industry. “The new joint venture is a timely investment and will significantly contribute to the Sri Lankan economy, while enhancing the competitiveness and flexibility of the apparel sector by making available a wide variety of apparel labels and packaging products”. He also added that, “The locally produced apparel labels and packaging material will be made available to the apparel sector at competitive prices and faster lead times.” The new venture will enable local apparel manufacturers to reduce their reliance upon imported labels and packaging products, while generating significant foreign exchange savings. The joint venture will also greatly enhance the opportunity for indirect exports, resulting in further corresponding foreign exchange inflows into the country.
The apparel industry in Sri Lanka accounts for over 40% of exports and is therefore the leading export sector contributor to the country’s economic growth. The current annual value of this industry is estimated at USD 4 billion, and the industry is projected to achieve further significant growth in the next few years due to various changing factors in the global apparel industry. Sri Lanka has a strong backward integration in the industry, geographic location and the concurrent economic benefits of market access and an advanced manufacturing base which facilitates better product development and penetrative marketing capability. The prevalent labour standards and compliance with ethical requirements of the industry are also deemed as factors influencing the projected growth of the industry.
“The apparel label industry has directly benefited from this growth. The prevailing positive business climate indicates excellent potential for growth of the apparel label industry in Sri Lanka and ideal market conditions for a strong, well-networked, branded label supplier to enter the market, thereby facilitating competition and contributing to further growth of the industry,” Sugathadasa added.(KH/SI)
