India’s Vagmi Cottons Limited, will immediately invest 7 million Million US Dollars this year to build a factory that would process 8,000 metric tonnes of cotton lint in the year 2019.
The company which has already acquired a 26 acre land in Mwembeshi area, Chiombo District, Central Province, will in 2020, evolve from cotton ginning to a full textile which will resuscitate the once vibrant textile industry in Zambia.
VAGMI Company Chief Executive Officer Amit Dwivedi says his company is also in talks with INDO Zambia Bank to study possibilities of a joint venture or leasing the defunct Kafue Textiles Company.
Mr. Dwivedi says his company further identified Boniface Daka from Lusaka’s Chawama area who has been fully sponsored and is undertaking a year long training programme in India focusing on factory engineering and operations management.
He says the company will engage 23, 000 cotton farmers from Mumbwa, Shibuyunji, Chipata, Petauke, Lundazi, Katete, among others, in the next two years.
This came to light when Zambia’s High Commissioner to India Judith Japijimpanga toured Vagmi Company Cotton Factory in Indore, in the Indian State of Madhya PradeshA.
The Chief Executive Officer says the company will be running an outgrower scheme where it will supply farmers with seed, chemicals, wool packs and that it will be the company’s responsibility to collect cotton from farming areas as it will procure an initial 15 trucks.
And Zambia’s High Commissioner to India Judith Kapijimpanga has noted with gratitude that Vagmi Company is happy with a clear policy direction by the Zambian Government of value addition, and especially that the Cotton Board of Zambia has a fixed cotton price for a win- win situation.
She says Zambia has reliable transport system, hospitable citizens, peaceful, reliable electricity supply, progressive legal and banking systems.
Mrs. Kapijimpanga says she is happy to note that Vagmi Cotton’s Company will also build houses for some Zambian staff running the factory.
She explains that Zambia has been yearning for the revamping of the textiles sector following the defunct Mulungushi and Kafue Texiles Companies.
This is contained in a statement made available by First Secretary Press and Tourism at the Zambian Mission in India, Bangwe Naviley.