Tata International eyes Rs1,000-cr revenue from leather products
January 21, 2020
Featured in The Hindu Business Line
Plans to invest Rs500 cr for capacity expansion
Tata International, a part of the Tata group, plans to invest nearly Rs500 crore in the next five years to expand its manufacturing capacity, especially for synthetic and non-leather products and ladies shoes, said V Muthukumaran, Head-Leather Products, Tata International. The market is good for both leather and non-leather products, he told newspersons.
The company expects a 15 per cent increase in revenue to Rs1,000 crore from leather products for the fiscal ending March 31, 2020. Tata International is India’s third largest exporter of leather and leather products, and the second largest exporter of leather footwear, he said.
In 2017-18, the company manufactured 4 million leather footwear pairs; in 2018-19, it was 4.5 million and in 2019-20, it was 5.3 million. “We plan to manufacture around 7 million pairs in 2020-21,” he said.
“We are looking at an incremental revenue of Rs150-200 crore for 2020-21,” he said. Nearly 85 per cent of the total revenue comes from exports, mainly to Europe, the US and Australia, he said. “We export leather and leather products to nearly 30 countries,” he said.
Growth in leather shoes
On emerging trends, Muthukumaran said growth in leather shoes is quite stagnant. However, the market for non-leather; sports and comfort shoes is growing. “Nearly 90 per cent of our business is in leather products. However, in the next 4-5 years, the growth will be more in non-leather products,” he said.
Tata International offers premium brands in children, ladies and men’s shoes categories. Its clients include Alpine Stars, Caleres, Clarks, Deichmann, Geox, Marks & Spencer, Massimo Dutti, Zara and Woverine, he said. The company has manufacturing facilities at Chennai, Ranipet, Ambur and Chitoor, he added.