The Hindu Business Line : Worldwide Leather jumps on gradual mop-up

WORLDWIDE Leather Exports has been moving up steadily on the BSE in the past one month on gradual mopping up by a group of operators. Today, it closed with a gain of around five per cent at Rs 66.70 and recorded 62,306 shares against the fortnightly average of 23,058 shares. In the past one month, the stock has appreciated by 113.1 per cent.

According to dealers, today's move was attributed to its tie-up with Shopper's Stop for display of its Bertini-branded footwear at the retail chain's outlets.

The board of directors of the company is meeting on Saturday to clear a preferential allotment to a European leather item manufacturing company.

According to sources close to the company management, some 14 per cent stake in the company is likely to be demarcated for preferential allotment. The proceeds would be used for the 100 per cent export-oriented unit's domestic retail plan.

The company has set up couple of outlets in the National Capital Region. It proposes to roll out a retail network across the country, a company source said.

According to market analysts, though the company's products are mainly exported to European large retailers and footwear manufacturers, the margins had so far been very tight - not more than three to five per cent. The exports volume of unbranded items has improved sales but failed to change the bottomline significantly. It's export clients includes Bata (Spain), Lee Cooper, Shoe Tree and Marco Ricci.

In the export markets, the company is trying to get a foothold for its branded products too. The initial target is to have arrangements with 300 stores in the UK. It is also attempting to have similar arrangements with retail chains and outlets for other European markets.