The leather industry is planning to have a product engineering development facility at Ambur Trade Centre (ATC). They want such a such a facility to help footwear manufacturers, specially small and medium business enterpreneurs, with design and engineering capabilities and enhance production and exports.
Generally, leather footwear accounts for nearly 45% of the overall leather exports from the country. The footwear exports from Ambur alone works out to be nearly Rs 1,500 crore. The southern leather belt in Tamil Nadu which covers locations like Ambur, Ranipet and Vaniambadi alone houses nearly 250-300 small and medium manufacturing units.
According to M Rafeeque Ahmed, chairman of Farida group of companies, one of the leading leather product exporters in the country, ATC is a well designed and fully air-conditioned structure constructed with contributions from the Centre and industry.
?We are planning to have a professionally-run design and engineering facility within the centre. We have approached both the central and state governments, besides some industry players for financial assistance to fund the project. Though the overall investment is estimated to be only Rs 4 crore to Rs 5 crore, it should be established with the joint efforts. Once we get some kind of consent from the governments, we will call out for tenders from interested parties for setting up the facility at the ATC. The selected design and engineering firm will manage the facility professionally and offer services to leather product manufacturing units in and around that area for a fee?, said Rafeeque, who is also the chairman of Ambur Economic Development Organisation Ltd.
Several domestic and international firms would be interested in setting up the facility. In fact, a couple of firms from Italy, a leader in leather footwear, have evinced keen interest in establishing the facility. ?But we would want an Indian company to run the show to have the necessary domestic touch. However, the selected firm could source technical expertise from international companies especially from Italy, to offer world class design and services to the local manufacturers?, he said.
?We are working on the model best suited to operate and run the design and engineering development facility. The purpose is to manage the facility more efficiently and effectively for the benefit of the industry as well as the firm which is going to run the facility,? he added.
He said the industry with the help of the new facility hopes to double the exports from Ambur alone in the near future.