Date:20/03/2005 URL: http://www.thehindubusinessline.com/2005/03/20/stories/2005032001590200.htm

Back Farida to begin shoe sole mould production in June

R. Balaji

Chennai , March 19

FARIDA Xiezhan Moulds Ltd, a joint venture between the Chennai-based Farida group and Xiezhan, a Chinese manufacturer of moulds for shoe soles, expects to commence production in June.

The Farida group will bring in 65 per cent of the equity and the balance will be from Xiezhan, according to Mr Rafeeque Ahmed, Chairman, Farida group.

Equipment has been shipped and the company will start making moulds for shoe soles by the first week of June, he said.

The venture is expected to fill a key gap in shoe making as manufacturers depend on imports for moulds to make shoe soles. The expertise is not available locally and European countries, particularly, Italy, are market leaders.

But China has emerged as a leading player and is a more economical option, he said.

Mr Ahmed had told Business Line earlier that the unit is likely to come up at the industrial park for shoe components proposed at the SIPCOT industrial park at Irungattukottai.

It could involve investments of about Rs 5-7 crore and will meet at least 50 per cent of the demand for shoe moulds in the South. Manufacturers use a set of moulds consisting of about 15 pairs of various sizes. There is an immediate need for over 200-300 sets.

The component industry needs to grow if the Indian shoe manufacturers have to become consistent suppliers for the markets in the West.

Shoe manufacturers do not have more than six weeks to meet an order from a European buyer. Manufacturers who were earlier dependent on imports for about 70 per cent of the components now look to makers abroad for about 40 per cent.

Though the situation is an improvement, ideally, they should look to imports only for about 20 per cent. The rest should be available domestically for the benefit of time and cost, Mr Ahmed said.