The Hindu Business Line : Forward Group to expand capacity; plans Chennai unit

Forward Group, a Chennai-based footwear and leather exporter, is expanding its production capacity with a new facility near Chennai. Also, on the way are joint ventures with Italian companies for shoe components such as foot beds and rubber soles.

According to Mr Muhamad Yavar Dhala, Managing Director, Forward Group, the new facility will have a capacity to manufacture about 10,000 pairs of shoes a day and employ about 1,000 workers.

Forward will invest over Rs 40 crore in the facility, which will start production in April 2007. The funding will be through a combination of internal generation, about 25-30 per cent, and bank loans, Mr Dhala said.

Continuous increase in demand is pushing the need for additional capacities. Most large brands in Europe are looking at India as a source for leather products, especially footwear.

New joint venture

The group is also expanding its shoe components manufacturing through new joint ventures and increasing capacities at its existing units. It has tied up with Stilflex, Italy, a leading manufacturer of foot-beds — a soft lining above the shoe insole to enhance comfort.

The unit will manufacture about 3,000 pairs of foot-beds a day. The investment in the joint venture, which will be an equal one, will be Rs 5 crore, according to Mr Dhala.

Footwear manufacturers are now importing foot-beds and the quality is not always up to expectations, he said.

The company is also in discussions with Silga Goma, Italy, to set up a joint venture for manufacturing rubber soles.

Expansion plans

The Forward Group has in its fold a joint venture for manufacturing thermoplastic, PVC, and leather soles through a joint venture with another Italian company Suolificio Malaspina. This facility will be expanded to produce 12,000 pairs of soles a day by the year-end. It now has a capacity to produce about 8,000 pairs.

The Forward Group is a Rs 200-crore group with interests in manufacturing and exporting of footwear, shoe uppers and leather.

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