It is a great feeling to be here in this afternoon and at this function of Buyers Sellers Meet and Exhibition of footwear components organized by IFCOMA. I also like to thank for giving IFCOMA MILLENNIUM AWARD to M/s Bata India Ltd. Thank you very much indeed.
As the one being associated with the footwear Industries for 35 years I rather like to make some key issues and share my ideas with you.
If you look at the total footwear scenario, it was Rubber which came first during 50s, then in 60s it was PVC footwear and both later made tremendous growth but so far Leather footwear is concerned it has not been that phenomenon. The person who brought in the development programme in the man made is Mr. Amarendra Sinha at the national level. "It however could not happen in spite of the fact that lot of efforts were put in it as there was Special Committee, Murthy Committee and then the target was to achieve 10% of the world footwear trade by the year 2000 hut we are not reached half of that even."
Under various programme lot of machines were imported in the country by taking aids from various agencies and or the banks under various schemes. If I recall correctly it is around 140 EOU got the license to establish the factory with a capacity of around one million pairs and with the investment, by the rule of thumb, of about Rs. 30 crores. Unfortunately, barring some units there is tremendous under capacity utilization. There are many number of machines imported and most of them seems to have not taken out from the cases and in some cases there are no man power for their maintenance.
We are still fighting for many important requirements. For example : Computerised Lasting machines. We are still struggling for having them or to maintain those kind of machines.
China, Taiwan and Vietnam has made tremendous growth and even Indonesia which came up in last 5-7 years also grew particularly for their quality and delivery. There is a big difference between them and our country. We are growing but In a very sluggish way. In China today more than 1000 million pairs are produced and exported out of their country. There has been a change in the scenario there as now more & more units are getting converted with private partners.
"In India If we have the determination and If we get over the style of functioning, there is ample opportunity here." Some big player of footwear trade from the world came here and they could only made their presence felt but could not make India for their big sourcing of footwear. They went to Vietnam about 6-7 years back ago, and for the project implementation, they just transplanted their plant. They sent about 10-12 supervisors in the particular country. The gestation period is very less and after installation and keeping man power the production start rolling out in 5-6 months only.
India stands with very good chance of having a quantum jump in the production and increasing the share in the world market, if we have the determination and if we could get over some of the red tapism, this is the opportunity because we have the man power and the wage is also favorable.
When China started they started paying $40 per month with that free accommodation and meals but today It has gone up to $70 pm. The big difference is as we, as per factory act, can not ask to work for more than 48 hrs a week, while in China they work 11 hrs. a day for 6 days with no overtime and to meet for urgent production or shipment they work on Sundays- with no overtime. In Vietnam the wage is still $35 and in Indonesia it is about $ 40 per month. So we are quite competitive.
Moreover, in this country English is quite understood and spoken which is also an advantage. So if we could pull up our socks and put the head together, there is tremendous opportunity.
At the end, I thank IFCOMA once again for organizing this event and wish all the participant a great success.
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