EPZ or Export Processing Zone

EPZ or Export Processing Zone Industrial locations such as at Kandla in Gujarat , at Santa Cruz in Bombay , at Falta near Calcutta , at NODIA next to Delhi , earmarked specifically for export production. EPZs, or Free Trade Zones as they are often called, is a concept tried out in several other countries as a method of increasing exports. This is sought to be achieved by providing both tax concessions and easy imports – typically duty – free and red – tape – free – of machinery and raw materials, etc, required for export – oriented production in the zones. In addition, these zones try and provide ready – made production and commercial infrastructure needed by exporters. From an investment point of view, if a company has some manufacturing facilities in an EPZ that would be an indicator of its being serious about exports – and export profits are tax – free. The extent of the tax – free profit component, and its significance on the company’s bottom – line and EPS, etc., must be carefully looked into before jumping to the conclusion of it being a super – profitable company.

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