INDIAN FOOTWEAR INDUSTRY

The footwear sector is a very significant segment of the leather industry in India, rather it is the engine of growth for the entire Indian leather industry.

India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand.

The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry.
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Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. 

Nearly 75% of India’s export of footwear goes to European Countries and the USA.

The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector.

Footwear – Global Scenario and India’s share

The global import of Footwear (both made of leather as well as non-leather) increased from US$ 54051.10 million in 2003 to US$ 79314.51 million in 2007, growing at a CAGR of 10.06%. During 2007, the India’s share in the global import is 1.88%.

Source: ITC, Geneva & DGCI &S, Kolkata

India’s export of Footwear touched US $ 1533.66 million in 2008-09, with a share of 42.62% in India’s total export from the leather sector.  India’s export is growing at a CAGR of 13.91% in the last five years ending 2008-09.

Footwear exports have increased from US$ 50.00 million in 1978-79 to US$ 1533.66 million in 2008-09 

Keeping in view its past performance, current trends in global trade, the industry’s inherent strengths and growth prospects, the footwear industry aims to augment production, thereby enhancing its exports to US $ 3.37 billion by 2013-14 from the current level of US$ 1.53 billion.

Partnerships that spell success

Formas Kunz Brazil - This facility is coming up in the Footwear Component Park. Chennai, India.

Feng-Tay Enterprises Co. Ltd., Taiwan - This is an SEZ-proposed facility in an area of 275 acres, coming up in SIPCOT Industrial Estate, Cheyyar (TN).  Feng Tay is a manufacturer of sports shoes, skate shoes and casual shoes for Nike and other global brands.

Apache Footwear, China - This FDI is coming up in Tada Mandal, Nellore (AP), in an area of 340 acres.  Apache is a supplier of shoes for Adidas and has manufacturing facilities in China.

A few other examples are, Mondial (Italy), Suolificio Malaspina (Italy), Fagus(Germany), Zahonero Virgili SL, (Spain), Top Fondi (Italy), Xie Zhan Moulds (China)

Indian footwear industry poised for growth

India has state-of-the-art manufacturing plants.  The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production units are installed with world class machines.  Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry.  The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets.  With technology and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.