Agra considers consortium idea
16/09/2011
Agra’s footwear industry is the largest in India with estimated annual manufacturing value of almost $2.1 billion. However, producers there have begun to think the consortium model, in which individual manufacturers will work together, may be the best way to win large export orders. The thinking is that their combined manufacturing capacity would allow them to compete much better with rival producers in China.
President of the Agra Footwear Manufacturers & Exporters Chamber (AFMEC), Puran Dawar, has told local media: “We have mooted the idea and our members are positive. The consortium concept has to come if we want to enter the big league export market.”
He pointed out that China has units with a manufacturing capacity of 40,000 pairs per day, 20 times the capacity of most footwear factories in India.
“Global retail chains place bulk orders to the tune of almost 500,000 pairs and such large orders are difficult for individual units to cater for,” Mr Dawar added.
At present, Agra is the source of around 35% of the total footwear exports from India, as well as 65% of the shoes sold on the domestic footwear market. There are around 10,000 footwear manufacturing units in Agra but only 150 are big enough to focus on the export market. More than 30% of the population of Agra (around 1.7 million) depends upon leather and footwear manufacturing for work; the sector employs nearly 500,000 people there.
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