Financial Daily from THE HINDU group of publications
Friday, Jan 30, 2004
Financial Daily from THE HINDU group of publications Friday, Jan 30, 2004 |
||
|
|
||
|
Corporate
-
Alliances & Joint Ventures Italian co to invest in leather jt venture Our Bureau
Chennai , Jan. 29 CONCERIA Virginia Italy has made the first foreign direct investment in Indian leather tanning through a joint venture with Forward Group. The venture, among others, is expected to reduce operating costs for leather footwear exporters and make them globally competitive. Conceria's investment follows two other Italian joint ventures in shoe soles manufacturing with Tata International and Saba Soles. They are expected to help industry replace imported inputs with local ones, and reduce costs and the time taken to make shoes. Mr Yavar Dhala, Managing Director of Forward Group, told presspersons that though the new tannery would reduce input costs, the key benefit for industry would be to reduce delivery time taken on orders. According to Mr S. Audiseshiah, Executive Director, Centre for Leather Exports, recent developments (not including Conceria venture) have translated into lower "transaction costs" for shoe making and improved investment climate. Growing operating costs in Europe have pushed firms to outsource from Asia. Ms Laura Vierucci from Conceria, who will head the joint venture's marketing, said the Italian "tanning industry is in a flux because shoe making is outsourced. Our customers want us to move closer to manufacturing sectors." In Asia, China's economies of scale and consequent cost advantages helped it grab a large share of the mass market for both shoes and garments, thereby adversely affecting sections of the Indian industry. According to industry sources, Indian footwear industry had managed to hold its own by relying on its strength thereby making better quality shoes than the Chinese industry. Consequently, upper end shoemakers such as the US-based Global Brand Marketing had recently begun sourcing shoes from here.
More Stories on : Alliances & Joint Ventures | Leather
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|