Tata International Ltd (TIL)is expanding its footwear production capacity by establishing a new unit near Chennai.
The new unit will have an investment outlay of about Rs.25 crore. It will come up at Thirumazhisai here. It will have an annual production capacity of two million pairs. It will go operational by 2015-16, according to N. Mohan, Global Business Head, Footwear and Leather Garments, Tata International.
At present, TIL has three footwear production facilities in and around Chennai, one each at Ambur, Wallajah, Ranipet (all in Tamil Nadu), Dewas (Madhya Pradesh) and Portugal. Currently, 5.5 million pairs of shoe are produced in Tamil Nadu, and one million pairs in Central India.
ADVERTISEMENT
“We have drawn up a three-year strategy to produce 10 million pairs by 2016-17. In the current year, we will produce 6.5 million pairs, followed by 7.8 million pairs next year. Out of additional 1.3 million pairs, Tamil Nadu will account for one million pairs. In the last four years, we have invested Rs.60 crore on plant and machinery and Rs.20 crore on building human resource capital. Besides, we opened the third unit near Chennai last year,” he said.
Over 99 per cent of TIL products are exported to over 35 countries. To increase its presence in the domestic market, the company plans to set up a separate brand division that would have a basket of five-six international and domestic brands.
Having received encouraging response for Aerosoles, U.S. women’s shoe brand, from the western India, TIL is now planning to sell it in other parts of the country by opening 100 retail outlets in the next three months and another 200 outlets in three years.
ADVERTISEMENT
“We will start seeding Aristos, Arin and SCT brands in the domestic market during April. The roll-out will happen by September/October,” he said.
TIL is likely to end the current year with a turnover of Rs.860 crore, and eyes sales of Rs.1,400 crore by the third year.