CHENNAI: When the pandemic closed the door in Vietnam, opened again to India.
And through that door, clutch leather shoe makers in Tamil Nadu could march into overseas markets.
Lockdown in Vietnam from July to October approximately 90,000 businesses were forced to close and sports shoe manufacturers could not supply five million pairs in time for global brands based in the US.
Now, some Taiwanese companies are outsourcing manufacturing and coordinating the supply of global top brands in the US are looking at Tamil Nadu, given the traditional strength.
Fengtay Taiwan company, which makes Nike shoes, already has a foot in the country through a tie-up with Lotus Footwear in Cheyyar and is now expanding into Bargur and Tindivanam.
More recently, Mohib Group, a traditional leather company, signed an MoU with TN government to invest ₹ 500 crore in non-leather shoe unit in cooperation with a Taiwanese company.
It is expected to employ 20,000 people in a facility near Ambur.
“We have to forget what we did yesterday and continue to evolve if we have to grow,” said the group’s chairman Mohammed Mohibullah Mohib Kottai.
“While we maintain our growth in the skin, we will not ignore the new opportunities.
Being in the fashion industry, we must embrace change.
” Globally, 86% of footwear sold are non-leather.
Leather industry in Tamil Nadu, which accounts for 45% -50% of the annual Indian leather exports amounted to $ 5.09 billion in 2019-20 and is estimated to touch $ 5.9 billion in 2021-22, is seeing growth opportunities.
“An opportunity came my way around 25 years ago, but we missed it because of various reasons.
Indonesia and Cambodia benefit later.
A greater chance when it comes our way.
We had to quickly grab it, “said industry veteran and chairman of Farida Group M Rafeeque Ahmed.
“Let the industry continues to focus on the skin, which has now become a niche market segments such as the United States.
Meanwhile, greater growth occurring in non-leather and shoe industry here must expand its operations into this emerging segment, “said Ahmed.
“For India, the US is a huge market.
But for the US, we are only sixth or seventh on the list of priorities (the Indian leather sector exports to the United States in 2020-21 touched $ 645.6 million, or 17.5% of the country’s leather exports).
Therefore, the onus should be on us to pursue this opportunity, rather than expecting them to come knocking here.
” And the industry expects the support of the state government.
“It should provide a plug-and-play industrial warehouse to allow the unit to quickly move and build assembly lines, in addition to setting up micro-gardens to unit components,” said Ahmed.
Council leather exports (CLE) Executive Director R Selvam said that global companies are looking at India for joint ventures.
“It will take some time to turn this into a reality, but the green shoots visible.
If not for restrictions on air travel, the delegations of the countries of Southeast Asia will be here, “said Selvam.
Industry representatives said that Tamil Nadu should formulate policies to catapult into a major footwear purpose, conduct roadshows in countries where great integrator of supply chain and big brands are present.
“The state must declare industrial non-leather footwear as a sunrise sector,” said N Mohan, chairman, non-leather footwear panel to promote Making in India by CLE and co-chairman, Assocham for leather and footwear industry.
“Given the success of Tamil Nadu has been achieved in other sectors, I believe in two or three years all the major players will be here.” Tamil Nadu is planning to build half a dozen clusters of skin ‘in the entire state, including in places like Ambur, Manaparai, Ramanathapuram and Manallur.
An official said the government realized the potential.
“Non-leather shoes are green industries and labor-intensive, but not water-intensive.
It will be promoted in earnest.
The industry has recently submitted a policy document and we are looking into it, “the official said.
Pooja Kulkarni, MD & CEO, Guidance, Tamil Nadu, said athleisure fast-growing category.
“While the skin will continue to remain a niche and luxury products, it is non-leather footwear that will offer tremendous growth opportunities for at least 10 years into the future.
We have the ability and we were on the job.
We need to create a cluster so that we attract not only the OEM’s but also many of their vendors, as was the case with the automotive industry.
We are in touch with the industry and their requirements for ready-built industrial warehouses can be handled through Sipcot and Sidco, “he said.