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R. Balaji

Chennai , Jan. 15

THE Chennai-based Farida group is planning a joint venture with a Chinese company to set up a unit to manufacture moulds for shoe soles.

The Farida group has interests in tanneries, whole shoe and shoe component manufacturing, and is a leading exporter.

The group's chairman, Mr Rafeeque Ahmed, told Business Line that discussions are on with a leading maker of moulds based in Shenzhen, China. He did not wish to disclose the name of the Chinese company apart from saying that it was a large family owned company.

The tie-up is expected to be finalised by April. The venture would fill a key gap in shoe making as manufacturers depend on imports for moulds to make shoe soles.

Shoe soles are among the most important of the 20 - 30 components that make a shoe. Manufacturers need to have these moulds ready to meet the western markets' demand for shoes, which peaks during two seasons, Spring-Summer and Autumn-Winter. There is simply too much delay if a shoemaker has to depend on import of moulds or for that matter soles.

Therefore, ready availability of moulds locally would help the shoemakers meet the deadlines that most shoe buyers in the West give them. The expertise is not available locally, and European countries, particularly, Italy, are the market leaders.

But China has emerged a leading player and is a more economical option. Also, locally made moulds could be as much as 50 per cent cheaper than those imported from Europe.

The unit is likely to come up at the industrial park for shoe components proposed at the SIPCOT industrial park at Irungattukottai, near Chennai. It could involve investments of about Rs 5 crore - Rs 7 crore and will meet at least 50 per cent of the demand for shoe moulds in the South. Manufacturers use a set of moulds consisting of about 15 pairs of various sizes. There is an immediate need for over 200 - 300 sets, he said.

The component industry needs to grow if the Indian shoe manufacturers have to become consistent suppliers for the markets in the West.

Shoe manufacturers do not have more than 6 weeks to meet an order from a European buyer. Manufacturers who were earlier dependent on imports for about 70 per cent of the components now look to makers abroad for about 40 per cent.

Though the situation is an improvement, ideally they should look to imports only for about 20 per cent. The rest should be available domestically for benefits of time and cost, Mr Ahmed said.

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