The share of women shoes, which is only very marginal now, in Indian footwear export is set to get a big boost with the plan of Pavers Foresight Smart Ventures (PFSV) to promote a production centre in India.
The Mauritius-based $60 million PFSV has acquired the UK-based women’s’ coat footwear manufacturer brand ‘Equity Shoes’ in an undisclosed all-cash deal. The $12-million Equity Shoes is a 127-year-old manufacturer of women’s comfort coat footwear brand. It churns out four lakh pairs annually and has a strong retail presence in the UK and Australia.
According to Utsav Seth, CEO, PFSV will shift Equity’s manufacturing to India. It is in advanced stages of negotiations with manufacturers known for high quality, fully integrated production infrastructure here.
“We are on the look out for the right industry partner with the right space, skills to manage production, infrastructure to source quality leather and a good tanning base,” he said.
“The know-how, production kits and product engineering will be provided by PFSVL and the partner would have to arrange working capital. We are negotiating with a few people and a decision is on cards within three weeks. The entire migration may take a year,” he added.
Seth said, ”the acquisition is a landmark for the Indian shoe industry as India was known only for mens premium shoes. This will bring in the know how for manufacture of high end women’s coat shoes, thereby adding a new dimensions to India’s high value added footwear exports.”
The re-located facility operated by the partner would produce 4 lakh pairs of women’s coat shoes contributing $10 million to the export earnings of leather and leather products. The facility is expected to employ over 500 people.
”This is part of PFSV’s aggressive expansion plans in India and will increase India’s share as footwear sourcing hub, globally,” he said.
The “seamless acquisition of Equity with its sub-brands, plants and machinery, talent as well as customers”, was facilitated through PFSV’s 100% UK-based subsidiary Shoe Club, a procurement services firm for buyers in UK, Europe and North America.
PFSV is a 50: 50 joint venture between London based $500 million Foresight Group, a global conglomerate with interest in shipping, oil drilling and hospitality, and Pavers Limited, a York based $150 million footwear retail major. It has plans to invest $60 million (over Rs 266 crore) in India’s dynamic growth opportunities across real estate, retail and footwear research and development.
In April 2008, Pavers England teamed up with the Chennai-based Forward Group to launch ‘Pavers England Footprints Limited’ (PEFL) to create a brand and enter into the domestic retail market. It has already established over 30 retail outlets in the country and plans are under way for more.