Hela Clothing eyes Mexico

Sri Lanka garments entrepreneur Dian Gomes is planning to expand production facilities of Colombo-based Hela Clothing to Mexico this year.

Mexico has been considered as it provides speedy access to the US market, Mr. Gomes, chairman of the company, told the Business Times on Thursday.

He noted that with trade agreements between the two countries (Mexico and the US) in place it would hold well for the company to establish a factory run by a 2000 workforce in Mexico as the US demands “innovation, speed and cost”.

The main export category manufactured in Mexico would be bras to the US market into which this bordering nation has duty free access.

Other duty free access nations exploited by Hela Clothing with factories already in place is in Ethiopia with a 2000- strong workforce and Kenya with a 6000-workforce in Kenya. The company has operations in Hambantota, Matale and Kurunegala and was marketing to clients like Calvin Klein, Marks and Spencer, Levis, Decathlon and Soma Intimates, a US brand.

Hela Clothing is in partnership with British national and former Merrill Lynch Chairman Robert Wigley and marketing lingerie, casual wear and kids wear.

Mr. Gomes, commenting on the gains of GSP+ concessions into Europe, said that in future salaries would be tied up with productivity as this was the only way to compete and as a result he noted “companies like us are trying to link with productivity bonuses."

Moreover, most major players are now looking at how to increase speed to market and create an additional unique selling proposition to customers from Sri Lanka.