I, On behalf of IFCOMA take great pleasure in welcoming you all on this 4th Buyer Seller Meet cum Exhibition of Footwear Components, Accessories, Leather and Machinery at Calcutta. This place not only has the glory of having the oldest and largest mechanized unit of M/s. Bata India Ltd. producing Leather and non Leather Footwear at Batanagar but also well known for the development of footwear, components, leather and leather products.
It was Bata, since 60s, which in fact created the component sector by developing vendors. This large unit was set up here with out any existence of components and accessories and each and every thing was arranged by them to run the unit. Not only this they later set up units in other states also which helped small footwear units by providing technical and material support. The fruits of which are enjoyed by all of us directly or indirectly.
This Exhibition, under the NLDP assisted programme, is our fourth national level event & the first at Calcutta. Our similar Meet cum Exhibition at Ludhiana held In August 99 attracted about 2000 visitors with nearly 50% from the unorganized sector. So was our second exhibition at Kanpur, held in Sept. 99, which also attracted more than 1000 visitors. The third exhibition at Mumbai was again an eye opener for the organized as well as for unorganized footwear manufacturers and I am happy to say that all of them have been serious to suggest that such events be organized minimum twice a year. We have therefore, decided to have larger exposure this year and many thanks to NLDP for quick approval of our work planin extending supports both at national and international levels. The dates for the exhibitions for the year 2000 has already been announced. With these exhibitions, the main objective is to "Create Awareness & make direct links" between the Buyers and Sellers of component and accessories, the equipment suppliers and the institutes like FDDI - CLRI - CFTI - SISI offering services for footwear manufacturing, fashion designing and various training courses and helping in the up gradation of the footwear quality of the organized and the large unorganized footwear sector by minimum 10% every year, which then multiplies rapidly, to improve the quality and quantity of footwear and components. I am confident these exhibitions will bring revolution in the small and tiny sector provided Govt. procedures are also simplified for them. I must inform you that the footwear Industry of Sri lanka have requested for organizing similar road shows on their home land.
In this fair there are presentation from CLRI on sole mould. Bureau of Indian standard (BIS) on the International / European Standard under ISO/CEN and Its serious impact under WTO in future, followed by CLC on the largest leather complex and also on ISO 9002 standard to create awareness.
Our Footwear Component sector has made considerable growth. In the last 7-8 years and today we have in India the production set up for Plastic Lasts, almost all types of Soles. Insoles, Toe puff and Counters, Fabrics, Metal Fittings etc. In fact, the growth rate was badly affected due to drastic reduction in the customs Duty on finished components in the 1994 budget while keeping the duty on import of raw materials at higher level. This has made the import more attractive and rather garlanded the well equipped International giants having the best of Infrastructures, low financial cost, better equipment and technology.
The trend in Footwear production and sales has made a substantial shift towards Non Leather materials. We now see uses of out soles from Rubber / PVC / TPR / PU / and EVA, Insoles from cellulose paper pulp and fabrics, toepuff / Counter from woven and non woven fabric base, fittings from metals like aluminium, Brass and steel. Lining of different types fabrics and even Upper materials having synthetic materials.
Looking at such a change in the present scenario, it is interesting to note that the component sector has the high potential to support the backward integrated industries like paper. Yarn and Textiles, Rubber & Plastics, Metal and Chemicals for adhesives and printings etc. and in India, we have the advantage and the strength of backward related units too. It Is estimated that more than 900 tons of aluminium for fittings / mould and nearly 600 tons of HDPE In making of Plastic Last Is consumed from the domestic sources. Our strong component industry will also boost forward related industry i.e. Footwear, in their quality production for domestics and exports market and making timely shipments.
Not only this, growth of component sector can reduce our Imports of components and accessories and also earn valuable foreign exchange by Exports to other countries. Our display at Pakistan and Bangladesh fairs has shown excellent potentials whereas our recent participation at Lineapelle (Italy) and at GDS (Germany) has made us aware of the international standards with our present level of quality, prices and volumes.
Let me also make you aware that exports of Indian Footwear Components and semi finished materials have already started. Our unit soles, cellulose insoles Sheets, toe puff and counters, metal fittings, fabric for linings etc are now exported and we are confident of entering in the international market with more Components with Increased volumes In the near future. For this however, It is very important for us to have regular such exposure in the developed countries to enable us to change our mind concept towards global outlook. One of our members has received orders worth of nearly US$ 1.00 lac in just three months of our participation at GDS in Dusseldorf. Thanks to NLDP for giving us support in the international exposure.
On international front, IFCOMA will be participating for the first time at Hongkong to display BEST OF INDIA footwear components and accessories during April and shall have larger display at the Lineapelle again. IFCOMA also has plans to conduct Study tours during this year to explore Joint ventures— Tech tie ups and export possibilities of what we produce. We would however, appreciate if the Council for leather exports take us in their sponsored promotional programmes and supports us at this stage.
India is heading for total opening of global trade with removal of Quantity restriction in next two or three years and the Govt. has been modifying excise and customs duties in phased manner but then will that only be sufficient to fight the global competitions knowing well that we have many hurdles when compared with the developed countries? I strongly feel that, it was for the Govt. first to provide basic infrastructure, finance, communication, power, roads, simplified customs and excise clearances, Introduction of VAT with simplified procedures in line with the best in vogue internationally & then to open the trade.
Look at China, with a nearby population, they are much ahead from us in productivity in almost all the segments. Our productions are I/I 0'h of their production and it is the trumpet of China which is now blown world over today. Even at this stage even, it seems that they have very cautious approach. It is only about a week back the European delegation could not make any pact with China to bring them under WTO. The fact today is that they are more global with firm presence without WTO when compared with us under the agreement.
Again in our country, large footwear producers are very limited and countable on fingers. Then some of them have in house component unit which affects the expansion prospects. With further reduction in customs duties it is feared that large imports of footwear from China will be dumped in our country affecting domestic industries. If so happen, the component sector will have to face the disastrous consequences before it even got strengthened in our country I however, congratulate our component manufacturers for the growth in spite of all odds against them when compared with global players. This certainly shows their capabilities to grow and to make India an international player provided level playing field is given. We have submitted proposals and are seriously looking forward to the support from the Govt. and other related bodies to remove the hurdles without further loss of time. Any delay may cause serious consequences to the Footwear and Component sector.
In view of higher financial cost, the component manufacturers also need financial support for Technology, Modernization and Expansion of their units at the international rate and would appreciate a corpus of Rs. 1OO cr. in similar line as made for the Leather sector and to be made available for three years. The component sector is looking for tech tie up in Sole Mould and the designer for creative work in India. We also have the target to improve the quality and designs of soles, metal fittings. Heels etc and are expecting an Italian delegation during Shoecomp2000 fair at New Delhi or earlier.
Council of Leather Exports should give highest priority to non leather Footwear component also by creating separate chapter and a panel. This sector has never been assisted in the past therefore looking in to the gravity of situation and Its four tier advantages, top priority and thrust area status be allotted to this sector giving all supports with open and liberal view.
I would also like to draw your attention on the blunders made in imposition of Anti dumping duty to protect the domestic industry. For example :. POLYSTYRENE (a plastic) is produced In India by 4-5 companies facing severe price competition from Asian countries like Taiwan, China, Korea and Thailand. To protect them an anti dumping duty has been imposed which is nearly 25% of the basic rates as a result the domestic industries increased their prices. Now the industries producing POLYSTYRENE are happy but the impact on those making articles / products make out of it like Plastic Heels or others articles in large numbers are badly affected due to price increase. The import of plastic articles has become more attractive thus affected the large number small and medium domestic industries. The traders have now rushed to Asian countries to take advantage. The anti dumping in my view should have been on Polystyrene and also on the articles made out of them to give a real protection to our domestic industries.
We have repeatedly requested the Govt. to exempt Footwear Components from excise duty for at least three years and rationalize customs duty structure to support the domestic industry. With excise exemption, this Rs. 2000/- cr. Component sector could get a tremendous boost. The nominal loss of revenue as such is estimated as 0.4% only of the revenue realised from the footwear sector. Therefore, this exemption will generate business and could be a good source of revenue to exchequer in future. Unfortunately, this budget seems to have made more damage to our industries by increasing excise duty from 8% to 16%, introducing non modvatable duty and by making increase in Additional duty of excise on goods of special importance thus taking substantial amount. According to experts, "Transaction value" will be more complicated then the present Invoice Value. The Govt. has awarded nearly Rs.1000/- cr. to the foreign suppliers but could not consider the similar amount for the domestic industries who have been employing and contributing on many heads to the govt., instead burdened us with more than Rs. 3200/- cr. knowing well the present industrial scenario. The level playing field and the SWADESHI slogan could get suited in the simplification of procedures only.
The NLDP assisted programme has been very helpful to us In the internal and external activities. Under the programme, IFCOMA website is being up graded which can be visited at all the search engines, participation at national and International fairs being undertaken, technical experts are being invited for training of workmen and over and above the most needed Research and Development work are also largely covered to help in building this sector. I have the great pleasure to inform you that IFCOMA work plan for the year 2000, which involves US $ 1,45,000 has been approved by NLDP in their last meeting. This approval will give more strength to our plans and help us enlarge our activities for the promotion of footwear component sector.
In one of the another development program, IFCOMA with NILDP support has opened its First Footwear Component display center at Hyderabad. The A. P. Footwear Design Center also organized a fair in the second week of February and Invited the footwear manufacturers to make themselves aware of our products. We have plans approved by the Govt. to have similar ONE STOP display cum marketing center at Delhi and at other footwear producing states to make availability of quality components at reasonable prices from one place only.
IFCOMA has also made affiliation with the Merchant Chamber of Commerce, Calcutta. I am confident with the support of chamber the hurdles such as: -i) taxes between the regd. Dealers when compared with zero rate at Delhi and ii) taxes on raw materials purchased by manufacturer - exporters when compared to zero (against form) In state of UP etc. affecting the growth of Footwear and Component industries In the state will receive due attention of the State Govt. for quick consideration.
At Kanpur and at Mumbal, IFCOMA honoured the senior oldest tanner, the footwear manufacturer and Mr. Razdan of M/s, Harmans for the excellent contribution in the Here, I have the great pleasure to announce that we shall honor M/s Bata India Ltd. with the IFCOMA MILLENNIUM AWARD - 1999. The award would be received by Mr. Bahuguna, Executive Director on behalf of the Managing Director who has been kind enough to respond extending support to our event but could not attend due to his trip abroad. Sri Sanjoy Sen, a senior legend and Doyen of Leather, is well known for the all round excellent contribution to our Leather and allied industry and for taking India to many of international forums. We with great proud shall honor him with the IFCOMA EXCELLENCE AWARD.
We are thankful to Mr. Ashok Kumar, JS Ministry of Industry (DIPP), Mr. D.K. Mittal, JS Ministry of Commerce and Mr. Amarendra Sinha NPM/NLDP, our driving force for the extensive supports without which all these would not have been possible.
I am grateful to Mr. Jawhar Sircar, Secretary Dept. of Commerce & Industry for accepting our request to inaugurate this exhibition in spite of his busy schedule. I am sure this exhibition will be very informative and with his support this important sector in the state can be brought back to become a national and International player. With the state having skilled labour, availability of raw material, power and with coming up of the largest Leather Complex, there is a very high potential of growth in this segment. Many thanks to our Chief guest Mr. G.C. Bahuguna for sparing his valuable time to grace this occasion. His long experience and guidance will be a blessing to all of us.
My thanks to honorable guest Mr. Burman, a soft hearted, simple and has been very cooperative. He has been very helpful to us in organizing this fair and has the determination to up grade the footwear produced by the small and tiny manufacturers under the most popular brand name of KHADIMS. Sir, an Initiative and leadership in changing the concept is the need of the hour to help bring back the glory of this state. We have here other branded shoe buyers namely Sree Leathers, Titas, Ford, Elite and Half & Half giving excellent support to small footwear units. I am therefore, confident of major changes and wish the turn around Is not far away.
Thanks to the all the participants, guests, friends. Institutions, CLE, ILPA, ILTA, our members and finally the media to cover this event which has helped us to reach to the large number of footwear manufacturers spread in and around the city.
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