Chennai footwear park attracts Rs 150 cr

India's first exclusive footwear component park, coming up near Chennai, is estimated to have attracted an investment of over Rs 150 crore so far.

Besides attracting a number of Indian footwear component manufacturers, the 28-acre component park at Irrungattukottai near Chennai has attracted leading footwear component manufacturers from Italy and Brazil, according to sources in the Council for Leather Exports (CLE).

The park, which is nearing completion, is coming up with about Rs 10-crore grant from the Centre, which sanctioned two parks for the footwear component industry in Agra and Chennai in a bid to support the growth of the footwear industry.

While the plan to set up the park near Agra was withdrawn due to non-availability of land and other issues, the government sanctioned about Rs 10 crore for creating common facilities such as a design centre, testing laboratories and a warehouse to cater to the units in the park.

Of the total 21 plots in the park, three plots are reserved for common facilities and 18 plots are available for the units. Of the 18 plots, 16 have been sold. While six plots have been registered, six have been allotted and four plots are in the process of allotment.

Brazil-based Formas Kunz, a leading producer of shoe lasts (a shoe last is a foot-shaped mould around which a shoe is produced), has bought two plots to set up its production facility in the park. However, investment details in the units were not disclosed.

CLE, the implementing agency for the park, is in the process of creating the common facilities in the park. CLE is importing machinery for the testing facility from the Shoe and Allied Trade Research Association of UK and the common facilities are expected to be ready soon.

Beside, three manufacturing units in the park are expected to go on stream by the end of this year. The units in the park will cater to both domestic and export markets, CLE sources added.

The park is expected to further strengthen the shoe manufacturing industry in south India. While development of clusters for footwear components has happened largely in the northern region, the southern region, which accounts for a major chunk of footwear production, has not seen major component clusters to meet the growing demand as most of the component production units were captive units of footwear manufacturers, according to industry sources.

Footwear is generally composed of over 20 components. India exported Rs 883-crore worth of footwear components, of which a major chunk consisted of shoe uppers. Germany, UK, Italy, France, Spain, Switzerland and Portugal are the major markets for Indian footwear components.