Financial Daily from THE HINDU group of publications
Saturday, May 29, 2004
Mirza Tanners plans to set up new unit in UP
New Delhi , May 28
THE Rs 200-crore Mirza Tanners Ltd is looking to set up a new tannery in Unnao, Uttar Pradesh, at an investment of Rs 30 crore-40 crore by mid-2005.
With this unit in place, the company plans to vertically integrate into the manufacturing of eco-friendly, chrome-free leather for the car and furniture upholstery market, a totally new segment for the company which is at present involved in the manufacture, export and sale of footwear.
The manufacturing capacity at the new unit will roughly be 24 million sq. feet of leather per annum.
The company is in talks with a large multinational car manufacturer to become its approved OEM vendor for leather car upholstery, a product that is mostly imported at the moment.
Simultaneously, the company plans a branded car upholstery manufacturing unit in Ghaziabad where it will produce finished goods for both car and furniture upholstery. "The affluent class is increasing in the country by as much as 10 per cent every year, and with it the market for premium goods", said Mr Rashid Mirza, Managing Director, Mirza Tanners Ltd.
According to his projections, the new tannery and manufacturing unit to be set up in Unnao and Ghaziabad respectively and the company's new ventures in the footwear business are likely to enhance its turnover to Rs 600 crore-700 crore by the end of the 2006-2007 fiscal.
Currently, Mirza Tanners has four modern production facilities with an output capacity of three million pairs of footwear per annum.
It's brand, Red Tape, has a presence in the UK, South Africa, the US, Canada, New Zealand, West Asia and Hong Kong.
While the company has a wholly-owned subsidiary in South Africa, Mirza Group companies, formed through joint ventures, are present in the United Kingdom and Portugal.
Together with the India-based Euro Shoes Pvt Ltd and Leather Trends Pvt Ltd, the Mirza Group has a joint turnover of around Rs 400 crore and is producing 4.5 million pairs of footwear per annum.
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