Our Bureau

Hyderabad, Jan. 6

APACHE Footwear Ltd, an authorised manufacturer of the `Adidas' sports shoes having two facilities in China, has decided to set up a manufacturing facility at Nellore in Andhra Pradesh involving an investment of Rs 500 crore.

The proposed facility, which would employ around 30,000 workers, would have a manufacturing capacity of over one million pairs of shoes per month during the first year of production. The company Chairman, Mr Johnson Tsai, has signed a memorandum of understanding with the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, to this effect here on Friday.

Apache has selected Andhra Pradesh as its preferred location after satisfying itself with the incentives, concessions and support to be extended by the State Government, according to a joint press release.

Based in Southern China, Apache currently produces 12 million pairs of sports shoes annually. It employs 19,000 people at two of its manufacturing facilities in China. Apart from sports shoes, the company also offers a wide range of clothing and sports apparel, golf accessories and others.

Apache proposes to send its supervisors and management level employees of Nellore facility to China for training to ensure international quality of production. The AP Government has agreed to subsidise the training cost of workers belonging to the State, the release said.

Further, the release said the project would be developed as a sector-specific special economic zone for footwear with all infrastructure facilities. The State Government has agreed to extend to the `Adidas' facility all the benefits eligible for special economic zones.

(This article was published in the Business Line print edition dated January 7, 2006)
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