Date:15/10/2004 URL: http://www.thehindubusinessline.com/2004/10/15/stories/2004101502310200.htm

Back Mirza Tanners plans foray into apparel

Amit Mitra

Mumbai , Oct. 14

MIRZA Tanners Ltd, owners of the popular Red Tape and Oaktrak shoe brands, is in the process of expanding its business fabric by foraying into the men's apparel segment.

This is part of the company's brand extension programme, which is aimed at bringing under its Red Tape umbrella other men's products like after-shave, perfume and bags.

"Extending the Red Tape brand to the men's apparel sector is immediate on our radar. Our aim is to transform the Red Tape brand into a complete men's fashion house," Mr Rashid Mirza, Chairman and Managing Director, told Business Line.

However, he made it clear that the company will not get into manufacture of apparels.

"The design and brand name will be ours, but the manufacturing will be outsourced. We will identify some manufacturing facilities for outsourcing the work."

The apparel products under the company's Red Tape brand will be in the premium segment, in line with its current brand spectrum.

The company, which derives more than 80 per cent of its revenue from shoe exports, is now aiming at expanding its overseas market from the UK to other European and the US markets.

"We are increasing our focus on the French market. We are in talks with a major French shoe manufacturer, with an annual turnover of five lakh pairs, to forge an alliance. As part of this venture, the French company will be outsourcing a part of its shoe manufacturing requirement to us," Mr Mirza said.

The company feels that the Indian shoe industry could greatly benefit from the increasing trend of foreign shoe majors looking to outsource a slice of their manufacturing requirements.

Mirza Tanners recently bagged outsourcing orders worth $10 million from various shoe manufacturers based in Germany, France, Belgium and Scandinavian countries.

Currently, it exports around 70 per cent of its shoe production to the UK and has captured about 15 per cent of Britain's market in the mid-segment of men's leather shoes.

The company, which has established its own network of marketing offices, warehouses and distribution centres, is now in the process of finalising plans to set up a plant in Europe for deeper market penetration.