Textile industry: Socota Group expects an increase in its revenues

Socota Group, which owns the largest textile industry unit in Madagscar, expects an increase of 39% in its revenues for the year 2011. According to Socota’s CEO, Salim Ismail, such increase is mainly due to a rise of exports to South Africa. According to forecasts, the group’s revenues should increase up to 63.3 million this year. “The SADC’s textile markets grow very rapidly, and also, unlike our competitors, we have the advantage to be in an area that is geographically very close to that market,” said Salim Ismail.

Socota Textile Group employs 4 340 people and some of its customers include international popular brand names such as Marks & Spencer, the largest clothing retailer in Britain, and the Spanish Inditex SA, owner of the brand called, Zara. In South Africa, Socota supplies groups such as Woolworths and Edcon.

The group, which also operates in shrimp farming activities, is seeking to increase its exports to Europe since Madagascar was ousted from AGOA in 2009. The European market currently represents 76% of the group’s revenues, still according to Salim Ismail, who estimates the number of lost jobs at 20 000, following Madagascar’s suspension from AGOA.