The Hindu Business Line : `Footwear component makers need to treble capacity'

FOOTWEAR component manufacturers would need to treble their present capacity and go in for massive upgradation if they are to cater to the market being created by the shifting of overseas shoe manufacturing operations to India.

Mr Mani Almal, President of the Indian Footwear Component Manufacturers Association (IFCOMA), the industry apex body, said a recent study done by a Mumbai-based consultant had revealed that within the next one and a half years, Indian shoe component manufacturers would have to increase their capacity three times in almost all the segments, especially `shoe last' and soles and metal fittings, which were major components in shoe manufacture.

The consultants, Dalal Mcdonald, was appointed by the Union Commerce Ministry to check out the measures needed to upgrade the Indian shoe component industry to global standards.

Mr Almal mentioned during a press conference that shoe manufacturers in advanced countries were closing down their operations due to high costs as well as competition from China.

"Many of them have decided to source their production from developing countries such as India and the success of Indian shoe manufacturers depend on getting the right components as per international standards," he said.

He estimated that the industry would need funds to the tune of Rs 200 crore to expand capacity and upgrade technology. "Tie-ups with overseas companies are also being negotiated," he said.

Stressing on the need for capacity expansion, Mr B.D. Bhaiya, IFCOMA Vice-President, said that while the capacity for manufacturing shoe last, which was really the foundation of a shoe, was now about 1,200 to 1,300 pairs daily, the capacity for sole manufacture was 1.25 lakhs daily.

He said the areas where Indian shoe component makers were facing threat from China were insole material and synthetic shoe lining.

He said imports of shoe components had dropped from Rs 400 crore a decade ago to Rs 50 crore now.

Mr Bhaiya said the domestic market had trebled over the last decade even as consumption of footwear had increased. "But it was still trailing (that in) advanced countries," he said.

While footwear manufacture was valued at Rs 13,000 crore, that of the component sector was valued at Rs 9,000 crore, he said.

In order to create awareness among the unorganised as well as the organised sectors and to coordinate the activities of shoe manufacturers and components makers, the association was arranging a buyer-seller meet-cum-exhibition.

This would be held in the city between March 14 and 15.

IFCOMA has so far organised 17 such meets within the country as well as in places such as Colombo and Dhaka.

"The expositions in Sri Lanka and Bangladesh were organised to attract custom from within the SAARC countries which (apart from India) are totally dependent on imports from Europe and other countries," Mr Bhaiya said.

IFCOMA has also participated in international fairs in Italy, Germany, Syria, Hong Kong and Vietnam to create international awareness about Indian capabilities.