German footwear maker to relocate from China to India

May 19, 2020 15:41

Casa Everz Gmbh, the owner of Germany-based healthy footwear brand Von Wellx, will be shifting its entire shoe production of over three million pairs annually in China to India with an initial investment of Rs 110 crore, according to a top official of the company's licensee Iatric Industries Pvt Ltd. A new manufacturing unit will be set up with a production capacity of over three million pairs in Uttar Pradesh through a collaboration with Iatric Industries Pvt Ltd as part of an understanding with the state government.

"Yes, after multiple rounds of discussions, Casa Everz Gmbh has decided to shift its entire production from China to India," Iatric Industries Pvt Ltd Director and CEO Ashish Jain told PTI in an e-mailed response. Casa Everz Gmbh had two manufacturing units in China with an annual capacity of over 3 million pairs. Iatric Industries already has a capacity of 5 lakh pairs for Casa Everz Gmbh specifically under which it produces Von Wellx Germany -- 5 Zones Men's and Women's shoes apart from its other product capacities of another 5 lakh pairs, he added.

"Now a new unit will be set up with a production capacity of over 3 million pairs. We have a 2-year time horizon to reach that capacity after all the necessary cooperation with the UP government," Jain said. When asked about investments, he said, "The investment in Phase 1 of the project will be about Rs 110 crore over two years." "We also have a plan for phase 2, where ancillary industries will be set up for availability of high-quality raw materials like outsoles, special fabrics and chemicals which are not available in India right now and which will reduce raw material and footwear imports and improve the quality of Indian made footwear, attracting more investment," he added.

Explaining the reasons for Casa Everz Gmbh relocating its production to India from China, Jain said footwear being one of the top labour intensive industries in the world with raw material and labour availability also driving its economic advantage, India offered advantage on both the aspects. -- PTI

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