India attracts Brazilian footwear companies
Following the exodus of footwear companies and technicians to China in recent years, India is now making efforts to attract Brazilian professionals and businesses to the South East Asian country. In an attempt to attract Brazilian companies, a group of representatives from Indian companies recently visited footwear industry clusters in Brazil, particularly in the south of the country, and it appears to be proving a successful strategy.
Although India is the second largest footwear manufacturer in the world producing two billion pairs per year, footwear made in India remains fairly low quality. In response to this, manufacturers need to import specialised technicians.
Many Brazilian producers have now established operations in India including last manufacturer Fôrmas Kunz, of Novo Hamburgo, which is about to start producing in India. The company has already acquired 3,000m2 premises where the factory will be set up.
According to Ivan Petry, commercial director, operations are likely to start up in early 2007, and will produce 1,000 pairs of lasts per day. “Everything started when a group of Indian manufacturers of footwear for export contacted us,” he said.
Fôrmas Kunz produces 60% of all of the lasts used in the Brazilian domestic market but it is also being affected by the competition from China and is therefore looking at different options. Mr Petry added, “In the last few months production has dropped by approximately 1,000 pairs per day,“ adding, “The equipment which is now idle in Brazil will be used in the factory in India.”