Hong Kong-headquartered Apache Footwear group, which has footwear manufacturing operations in a 314-acre SEZ in Mambattu village in Nellore District in Andhra Pradesh, is upbeat about more localisation of footwear productions. The company is planning to set up a couple of satellite units in the state to enhance the production capacity keeping in line with the increased orders expected in future from the global footwear major, Adidas. Incidentally, this is the first shoe factory in the country providing international sourcing option for mega brands such as Goodyear Racer, Stan Smith and Ambition.
The company has invested over Rs 200 crore in Apache Footwear India to support its global sourcing strategy. Having good support from brand Adidas, Apache Footwear has decided to increase local manufacturing to support its global demands with fresh investments as well. Initially, two satellite units are expected to come up in the state. The company, which produces different models of shoe for the internationally renowned Adidas brand, currently employs around 5,000 workers at its Nellore facility.
Till January 2009, about 323,496 pairs were produced. It has now set a target to increase the capacity to 390,000 pairs. Besides, it is also planning to handle most original models including all articles transferred out during the last three seasons and mid-level performance shoes in the coming seasons.
According to the state government officials, the company is planning to bring in more overseas suppliers and maximize the material supply and raise the capacity to 500,000 pairs a month in a year.
Besides, the company is also planning a remote stitching factory, a hot press factory and a mould shop soon.
Meanwhile, a five-member delegation of Apache Footwear group led by Andrew Chen, Hong Kong headquarters and Jerry Chen, general manager, Apache Footwear India Private Limited, Nellore, met chief minister YS Rajasekhara Reddy.