Footwear marketing saves LIDKAR from closure

By S. Rajendran

BANGALORE, SEPT. 14. The Karnataka Leather Industries Development Corporation (LIDKAR), which was on the brink of closure a few years ago, is now riding on a high wave having created new markets in the eastern and northern-eastern States.

The turnaround has been possible due to its success in marketing one leather item -- the famed ``Kolhapuri'' chappals.

Although they are manufactured in Athani taluk of Belgaum District, the chappals bear the name of Kolhapur in southern Maharashtra as traders from that city used to sell them.

LIDKAR products are now to be exported to Bangladesh, Singapore, Japan, and the West Asian countries, particularly the United Arab Emirates. Discussions are being held with export houses for selling the products, particularly Kolhapuri chappals.

The Managing Director of LIDKAR, Mr. G.C. Indra Raj Urs, told The Hindu here on Friday that aggressive sales campaigns and conformity to the market demands had enabled LIDKAR achieve a good turnover. From Rs. 7 crores last year, the turnover was expected to touch Rs. 10 crores in the current year, he said.

The popularity of Kolhapuri chappals in West Bengal, Bihar, Uttar Pradesh, Orissa, Nagaland, Mizoram and Manipur encouraged LIDKAR to step up its operations. Trade in Kolhapuri chappals in the north-eastern States used to be controlled by private traders, who apparently had a big profit margin.

Mr. Urs said LIDKAR prepared a large number of chappal designs at its facility, and called upon leather artisans from Athani to produce the chappals. Around 13,000 pairs of Kolhapuri chappals sent to outlets in West Bengal last year were sold in about two months. A study of the footwear market in that State indicated that people bought at least five pairs each during the Dasara festival. Kolhapuri chappals went well with their ethnic dress of kurta and pyjama, he added.

In the next Dasara season, LIDKAR will be selling around 25,000 pairs of chappals in West Bengal and the north-eastern States. It has opened two retail outlets of its own in Kolkata, and signed a memorandum of understanding with the Marketing Corporation of the Assam Government for sale of the product in the seven north- eastern States. LIDKAR has also reached a marketing agreement with a large number of private vendors.

Mr. Urs said the focus of attention now was on some of the big States such as Uttar Pradesh and Bihar, and LIDKAR would have agreements with some of the major players in these States. ``It is the quality and design of the chappals which have helped us to create an opening (in the market), in contrast to private dealers, who have been spending large amounts on advertisements,'' he added.

The performance of the local LIDKAR showrooms (there are 29 of them in Karnataka) has remained the same or improved marginally. After receiving ISO-9002 certification, the sales turnover of showrooms at Malleswaram and on Residency Road has increased.

LIDKAR has provided employment to nearly 1,000 leather artisans. With the creation of new markets in the northern States, over 2,000 artisans will get jobs. However, there are nearly 10,000 leather artisans in the Belgaum region alone.

The organisation launched a scheme recently, with the support of the departments of Housing and Social Welfare, to provide nearly 1,600 houses to artisans.

Send this article to Friends by E-Mail

Section  : Southern States
Previous : Govt. dithering on cost-effective power project
Next     : 'Women have changed, media's portrayal has not'