In the backdrop of shift in production facilities to Asian countries, more and more domestic countries are looking to acquire units in countries which will improve their margins and give them increased access to international markets. A case in point being the purchase of American textile company Dan River for Rs.80 crore late last month by India based Gujarat Heavy Chemicals (GHCL). This purchase also enables GHCL to take guard of marketing network of around US$ 250 mln. Further the company acquired control of the manufacturing units which the US firm were operating in China and Pakistan. Mr. Sanjay Dalmia GHCL Chairman, said as they plan to outsource most of their production in India, Pakistan and China
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| after shutting down various units of Dan River in US. Inspired from Dan River deal, Eskay K'nit and Sabare International are also planning to start operations in China as they have identified locations and are ready to tie up with local company, as per Mr. Navin Kumar Tayal, Chairman, Eskay. The Phagwara based JCT set up a unit in Senegal, as the African Growth and Opportunity Act provides concession for exports to the US and EU. JCT also has a yarn manufacturing unit in Malaysia. According to Mr. D K Nair, general secretary, Confederation of Indian textile Manufacturers, many countries are negotiating with US for zero duty access since setting up units in the Gulf makes sense as country's export have to pay duties from 9% to 32% in the US and European markets. 
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