India's denim major Arvind Ltd has signed a memorandum of understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) to set up an integrated apparel and textile facility in Chittoor, Andhra Pradesh.

The facility, which will be established in multiple phases across 100 to 125 acres, will have the capacity to produce 24m units of apparel – namely shirts and jeans – per annum.

Its development will see an initial investment of between INR250 and INR300 crores and will create 10,000 jobs in the first phase. In addition, Arvind adds more than 5,000 other staff will also be employed in garmenting.

The MoU was signed between Kulin Lalbhai, chairman and MD of Arvind Ltd and J Krishna Kishore, CEO of the APEDB yesterday (4 March).

"Textiles is a priority sector for the government of Andhra Pradesh as the state aims to increase productivity and efficiency by attracting integrated textile units," said Kishore. "This integrated unit by Arvind Ltd puts fillip on India and Andhra Pradesh especially when global supply chains are moving towards South Asia."

The news follows a similar MoU signed by Arvind and the government of western Indian state Gujarat late last year to set up a large state-of-the-art apparel unit.

Arvind signs MoU for modern apparel plant in Gujarat