Footwear Sector & Companies in India

Indian Footwear Sector

• The footwear sector is a very momentous segment of the leather industry in India.

• India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs.

• India produces 2065 million pairs of distinctive categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs).

• India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. Exports are expected to increase.

• The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam.

• One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs and in accordance with the latest trends.

• Strength of India in the footwear sector

• command on reliable supply of resources in the form of raw hides and skins
• quality finished leather
• large installed capacities for production of finished leather & footwear
• large human capital with expertise and technology base, skilled manpower
• relatively low cost labor
• proven strength to produce footwear for global brand leaders
• acquired technology competence, particularly for mid and high priced footwear segments

• Resource strength of India in the form of materials and skilled manpower is a relative advantage for the country.

• Footwear sector give employment to about 1.10 million people in India.

 

Companies in India footwear sector

Bata India 

Bata India is a footwear manufacturing company incorporated in 1931. The company manufactures footwear for men, women and children. The Company manufactures shoes of various quality such as leather, rubber, canvas and PVC shoes. Bata Group has worldwide presence across 5 continents, serving 1 million customers per day and operating 4,600 retail stores globally.

Relaxo footwear

Relaxo Footwear started off with the manufacture of Hawaii slippers and subsequently diversified into manufacturing casuals, joggers, school and leather shoes. Relaxo is one of India's most quality conscious and progressive footwear companies. Relaxo has the capacity to manufacture over 100 million pairs, per annum. Relaxo's capacity to manufacture 300,000 pairs of Hawaii slippers per day is the highest in the footwear industry. Relaxo Footwear is a premier Indian brand manufacturing Slippers, Joggers, Casuals and School shoes. It has an extensive range within each category: Hawai, Canvas, Dip, Bahamas, Leatherite, Joggers, Flite

Superhouse

Superhouse Group is a conglomeration of several companies engaged in manufacturing and export of finished leather, leather products and textile garments. The group is well equipped with the most modern machineries and a specialized workforce and produces all types of quality leather, leather goods and textile garments that are appreciated all over the world. A $75 million group, Superhouse Group has 15 units, with a workforce of over 5000 and a presence in more than 35 countries.

Mirza International Limited

Mirza International focused on supplying high quality leather and leather products to the overseas markets and gradually became one of the largest exporters of finished leather in the country. Having gained a foothold in the footwear business, Mirza quickly reorganized itself by setting up in-house design and development studios, marketing offices and a strong distribution and logistics network. After successfully reorganizing itself, Mirza moved a step ahead of others by launching its own brands Red Tape and Oaktrak.

Liberty Shoes

Liberty shoes is the only company Indian company to be among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million. The company operates state of the art manufacturing facilities located at Gharaunda, Libertypuram, Karnal, Uttaranchal, Ponta Sahib and Roorkee. The company has a production capacity of 50,000 pairs of footwear a day. Liberty shoes markets its products through a channel of 150 distributors, 350 exclusive showrooms and over 6000 multi-brand outlets, with a presence in over 25 countries including France, Italy, and Germany.

 

Comparison of Footwear companies

•    Sales

    Sales in cr
 Bata    2737
Relaxo    1471
Mirza    919
Superhouse    705
Liberty    523

•    Net Profit

    Profit in cr
 Bata    213
Relaxo    103
Mirza    51
Superhouse    33
Liberty    17

•    Net profit Margin

    Net profit Margin
Bata    8.58
Relaxo    5.4
Mirza    6.13
Superhouse    4.83
Liberty    2.76

•    Price to Earning Ratio

    PE
Bata    39.75
Relaxo    61.1
Mirza    19.7
Superhouse    6.93
Liberty    24.75
 

•    Price to Book Value

    PBV
Bata    7.66
Relaxo    16.59
Mirza    2.99
Superhouse    1.15
Liberty    2.73
 

•    Dividend

    Dividend
Bata    6.5
Relaxo    0.5
Mirza    0.5
Superhouse    1.5
Liberty    1.5

•    Debt to Equity Ratio

    Debt to equity
Bata    0
Relaxo    0.59
Mirza    0.66
Superhouse    0.8
Liberty    0.8

Most of the companies have very low debt to equity ratio and is under control.