Tata International (TIL), India’s leading exporter and manufacturer of leather and leather products, has plans to significantly expand its operations. With a presence across several verticals in the leather footwear segment, TIL plans to ramp up capacities and is targeting a business of Rs 1,400 crore in three years from the current Rs 900 crore.
ADVERTISEMENT
“From the current 6.5 million pairs annually, we are targeting 11 million pairs in three years. Of this, 10 million will come from exports and 1 million from domestic market,’’ N. Mohan, Global Business Head, Footwear & Leather Garments, Tata International told The Hindu .
He was addressing the media to announce the company’s exclusive rights to manufacture and distribute leading U.S. women’s shoe brand, Aerosoles in India.
For this, the company has tied up with leading mutli-brand retailers like Metro Shoes, Regal Shoes and even with e-commerce portal Jabong.com. Aerogroup and TIL had a strategic alliance to make and market Aerosoles in Europe and India in 2012. The products have been test marketed in western India and will launch in north India and launch pan-India in 2 years.
ADVERTISEMENT
Tata International plans to expand capacity for children’s shoes from 2 million pairs to 3.25 million pairs expand men’s shoes from 1.8 million pairs to 3 million and women’s boots from 1 million to 2.5 million pairs in three years.
Typically, it requires $ 3-4 million for a 1 million pair capacity. “We see a big future in the domestic market. We employ around 9,000 people in our facilities and this go to 14,000 in three years. We are keen to set up standalone stores in the next two years in Tier 2 and Tier 3 cities in India.’’
Also on the cards is a ‘shoe city’ in Dewas, Madhya Pradesh, which will employ 4,000 women to be set up in the next three years. “This would entail investment of Rs 20-25 crore mainly in training.’’