China's handicap in EU helps Superhouse

To take advantage of the anti-dumping duty on Chinese leather products imposed by the European Union, Superhouse Ltd, a Kanpur-based manufacturer and exporter of leather products, has chalked out an expansion programme.

Superhouse markets its products in the domestic market under the Allen Cooper brand and exports its products to 35 countries and is largest exporter to France from India.

Mukhtarul Amin, chairman and managing director of Superhouse, said in a press conference here today that the besides the anti dumping duty on Chinese leather products, the cost of production in Europe was steadily rising, leading to the closure of a large number of factories in Spain, Portugal, Italy and other European countries.

He said this had resulted in European countries outsourcing their requirements from India, which not only helped them to retain their brands but also the profitability.

Superhouse, with an annual turnover of Rs 300 crore, will spend Rs 45 crore in expanding the capacities of its tanneries and the footwear division to serve the growing demand. Close to 90 per cent of the revenue of Superhouse comes from exports--leather footwear, leather accessories and textile garments.

Giving details of the expansion project, Amin said, "We have 11 units located in Kanpur, Unnao, and Agra and the capacities of the tanneries and footwear units are proposed to be increased by investing Rs 34 crore," he said, adding that "the expansion programme is targeted to be completed by next year".

Amin said the Union government had identified the leather industry as a "thrust sector", and as per the estimates of the Council for Leather Export, footwear production had to increase to 1 million pairs a day from the present 0.25 million per day.