Recent / proposed FDIs, Joint Ventures in Footwear Industry Zahonero Virgili SL, Spain (FDI) Conceria Virginia, Italy

(Joint Venture with Forward Group) Top Fondi, Italy (Joint venture with Farida Group) Xie Zhan Moulds, China (Joint Venture with Farida Group) Formas Kunz, Brazil - This facility is coming up in Footwear Component Park, Chennai Feng-Tay Enterprises Co.Ltd. Taiwan This is a SEZ proposed in an area of 275 acres, coming up in SIPCOT Industrial Estate, Cheyyar(TN). Feng Tay is a manufacturer of sports shoes, skate shoes and casual shoes for Nike and other global brands Apache footwear, China This FDI is coming up in Tada Mandal, Nellore(AP), in an area of 340 acres. Apache is a supplier of shoes for Adidas and has manufacturing facilities in China Takplast, Italy (a company producing soles and heels) signed a JV with an Indian company in Chennai Suolificio Mazza, Italy (a company producing leather soles) has decided to start up production in India also, in Chennai. Ge.Ma.Ta, Italy (a company producing tanning machines) is currently defining a JV and will very soon start up its activities in Ranipet Shosen, Italy (a company producing leather goods articles, in particular high quality bags. In Italy, it produces also for Prada) is defining a project with an Indian leather goods company to start up activities in Kolkata Cobaa, Italy (a company producing insoles) is concerned in investing in India (initial phase) Bartoli, Italy (a company producing fibreboards) is studying an investment project in India Ipr, Italy (a company producing PU and TR/ Rubber soles) is involved with seeking a partner to invest in India

Special Economic Zone (SEZ) Parks:

A Footwear SEZ Park is being established in Tamil Nadu, at the SIPCOT Industrial Estate at Irungattukottai, situated at a distance of 34 kms from Chennai. A land of 150 acres has been earmarked for this purpose and it is proposed to make available about 105 acres of saleable land to domestic as well as international footwear companies. The State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) is the implementation agency for this project. The Footwear Park will be developed on global standards, with adequate common infrastructure facilities such as Design Studio, testing and on-site training facilities, Display Centre-cum-Warehouse, non-conventional energy and other energy saving applications. Another SEZ for Leather Products is also under way at Ranipet in Tamil Nadu, in an area of about 260 acres. Apart from the above, there is a proposal to setup 10 Small Integrated Leather Parks (SILP) in different parts of the country.

Future Prospects: Future growth of Indian footwear industry in India will continue to be market driven and oriented towards the European and the US markets. Technology partnerships with major merchandising houses in USA and market leaders in Europe are decided advantages in the integrated developmental plan of India. Investment backed technology support for footwear component industry is being sought to be outsourced. Footwear is the engine of growth of the leather industry, currently accounting for an export value of US$1212 million, holding a major share of 41% in Indias total leather trade. o We have set an ambitious target of US$ 4.5 billion in respect of Footwear export from India by 2010-11 where the overall export of leather products will reach US$7 billion, wherein footwear alone will account for a share of 65% in Indias total leather export trade.
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