Fipb Paves Way For Bally To March Into India

The next time you want to put your best foot forward, don145t bother flying abroad. Just step into your friendly neighbourhood exclusive retail outlet and slip into the world145s premier brand 145 Bally Shoes of Switzerland.

For Bally Management Centre has recently received the Foreign Investment Promotion Board145s nod to set up a 100 per cent subsidiary in India. The company plans to focus on marketing in India. It also plans to source local products, which will subsequently be exported, though it will not directly undertake manufacturing activities.

In its application to the FIPB, Bally Management has stated that its Indian unit would be engaged in quality control of sourcing units for processing leather and manufacturing leather uppers and complete shoes both for the local market and for exports. The subsi- diary will also undertake sales and marketing of shoes and leather accessories.

Besides, the subsidiary will also set up a chain of retail stores for marketing and distributing Bally products in the metros. The company will initially pump in $3-5 million as foreign equity in the Indian venture.

The commerce ministry has also supported the proposal of Bally Management, subject to the condition that the company will not directly undertake manufacturing activities.

However, it can source products from small-scale units, undertake exports and test market products for two years in the domestic market.

Bally is the only global premium brand which has a strong presence in the category of formal and dress shoes all over the world. The shoes, which cost over $100 a pair, face competition only from local niche brands or designer shoes in some countries, point out sources in the footwear industry.

However, there is no existing brand in the premium segment which could offer competition to Bally Shoes in India, though a few foreign brands 145 like Hush Puppies (with Bata) and Lotus of UK 145 have made forays in the middle level, point out industry sources.

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