Apache to set up unit in Andhra

Apache Footwear Limited, authorised manufacturer of the world famous 'Adidas' brand of sports shoes, entered into a memorandum of understanding (MoU) with the Andhra Pradesh government on Friday for establishing its unit in Nellore district.

The proposed project, with an initial capacity of over one million pairs per month, involves foreign investment to the tune of Rs 500 crore. It is expected to generate employment for 30,000 people.

The company plans to double the production capacity and the number of workers employed if the project is executed as per the schedule.

Apache stated that it had selected Andhra Pradesh for locating its unit after it was satisfied with the incentives, concessions and support extended by the state government.

A delegation led by Apache chairman Johnson Tsai had been in Hyderabad for the last three days to finalise the deal.

As per the MoU signed in the presence of state chief minister Y S Rajasekhara Reddy, Apache will send supervisors and management-level workers to China for training so as to produce products of international Adidas quality.

The state government will subsidise the training of workers (only those hailing from the state) at Rs 1,000 per worker per month for a period of one year.

The project will be developed as a sector-specific special economic zone (SEZ) for footwear with all infrastructural facilities. The state government will extend all the benefits eligible for SEZs.

Apache will provide housing for the workers besides a dispensary, supermarket, school, trade and skills training institute and transportation to the nearby city from the project site.

Apache has two manufacturing facilities in China. The two units employ 19,000 people and produce 12 million pairs of shoes annually.