Karnal, March 27
Liberty Shoes Limited has decided to set up three new production facilities to double capacity to one lakh pairs of footwear per day from the present 50,000, over the next three years. The company has planned an investment of Rs 160 crore, of which Rs 80 crore will be used in the new units and another Rs 80 crore for further expansion.
"We will be coming up with three new plants next year. Our capacity will go up from 50,000 pairs per day to 75,000 pairs within the year and to one lakh pairs in three years," Chief Executive Officer, Mr Adesh Gupta, told reporters here.
One of the three units will be set up at Roorke in Uttaranchal with a Rs 50 crore investment for leather footwear, while the other two will be set up at Ponta Sahib in Himachal Pradesh involving an investment of Rs 30 crore for non-leather footwear, he said.
The company also plans to invest another Rs 80 crore by 2008 for further expansion, he said adding that funds will be sourced through internal accruals and bank loans in a 1:1 ratio.
Liberty has tied up with the global retail chain Wal-Mart for selling its products through the latter's outlets across the globe.
"Initially they test marketed our products in 30-35 stores and now will be sourcing in bulk from us. Though there is no firm commitment on volumes, our expansion plans are also based on expectations of huge orders from Wal-Mart," Mr Gupta said.
In order to capitalise on the booming retail sector, Liberty formed a joint venture company with Pantaloon, named Footmark Retail India Ltd, six months ago to open retail stores with a brand name Footmark.
"Liberty will be managing all the front-end operations. The first test store may be launched in May," he said.