Tata International plans to invest around ₹500 crore in the next five years to expand its manufacturing capacity, especially for synthetic and non-leather products and ladies shoes, according to V Muthukumaran, the company’s head of leather products. The market is good for both leather and non-leather products, he said in Chennai recently.
The company expects a 15 per cent rise in revenue to ₹1,000 crore from leather products for the this fiscal. Tata International is India’s third largest exporter of leather and leather products, and the second largest exporter of leather footwear, Indian media reports quoted him as saying.Tata International plans to invest around ₹500 crore in the next five years to expand its manufacturing capacity, especially for synthetic and non-leather products and ladies shoes, according to V Muthukumaran, the company's head of leather products. The market is good for both leather and non-leather products, he said in Chennai recently.#
In 2017-18, the company manufactured 4 million leather footwear pairs; in 2018-19, it was 4.5 million and in 2019-20, it was 5.3 million. It plans to manufacture around 7 million pairs in 2020-21.
“We are looking at an incremental revenue of ₹150-200 crore for 2020-21,” he said. Nearly 85 per cent of the total revenue comes from exports, mainly to Europe, the United States and Australia, he said.
Growth in leather shoes is quite stagnant, Muthukumaran said. However, the market for non-leather; sports and comfort shoes is growing. Nearly 90 per cent of the company’s business is in leather products. However, in the next 4-5 years, the growth will be more in non-leather products, he said.
Tata International offers premium brands in children, ladies and men’s shoes categories. Its clients include Alpine Stars, Caleres, Clarks, Deichmann, Geox, Marks & Spencer, Massimo Dutti, Zara and Woverine, he said. The company has manufacturing facilities at Chennai, Ranipet, Ambur and Chitoor.
Fibre2Fashion News Desk (DS)
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