Summer Training Project Report ON: in The Partial Fulfillment of Requirement of

SUMMER TRAINING PROJECT REPORT
ON
“A study of footwear business with reference to m/s Euro Footwear
Limited.”
In the partial fulfillment of requirement of
Post Graduate Diploma in Marketing Management
(2009-2011)
SUBMITTED TO: SUBMITTED BY: -
Dr. D.K.Garg Varun Jaiswal
Chairman Enr. No. - MMR-4109
IIMT, Greater Noida Batch – 15th
(PGDMM)
ISHAN INSTITUTE OF MANAGEMENT &TECHNOLOGY
2, Knowledge Park-1, Greater Noida, Gautam Budh Nagar
Uttar Pradesh
Website: www.ishanfamily.com, E-mail: student@ishanfamily.com
Ishan Institute of Management and TechnologyPage 1

PROJECT TITLE
“A study of footwear business with reference to M/S Euro Footwear

Limited.”

PREFACE
This report is an overall study of footwear business with reference to m/s EURO
FOOTWEAR LIMITED. The study is directed towards the visiting different departments in
the organization i.e. Production (cutting, closing, lasting), Human resource, Quality Control,
Environment policy and export department. By visiting these departments I have collected
information like making procedure of shoes and sandals, export procedure and
documentation procedure and other useful information like knowledge about different
machines used in making shoes.
In this study various aspects viz. functions working procedure, material used, machines
used,Technology used in different departments in the organization, are taken in to
consideration.

CERTIFICATE
This is to certify that the project work done on EURO FOOTWEAR LIMITED,
UNNAO Title: - “A study of footwear business with reference to M/S Euro Footwear
Limited” submitted to Ishan Institute of Management & Technology, Greater Noida
by Varun Jaiswal in partial fulfillment of the requirement for the award of degree of
Post Graduate Diploma in Marketing Management is a confide work carried out by him
under my supervision and guidance. This work has not been submitted anywhere else for
any other degree/diploma.
Date: Name of the guide: Mr.Shamim Ahmed
Seal/Stamp of the organization
Address:

ACKNOWLEDGEMENT
This project report is a result of endless effort & immense degree of toil by many great
minds. It was pleasure to work in one of the most valuable footwear company EURO
FOOTWEAR LIMITED, UNNAO.
I would like to thank all those people who graciously helped me by sharing their valuable
time, experience & knowledge. I would like to express heartiest thanks to Mr. KHALID
SHAMSI ( DIRECTOR )EURO FOOTWEAR LIMITED,UNNAO who has given me
an opportunity to pursue my summer training in a prestigious company.
I also express my heartiest thanks to my guide Mr. SHAMIM AHMED (MANAGER)

EURO FOOTWEAR LIMITED,UNNAO for his constructive Guidance, constant
encouragement, and proper criticism with affection.
I thank entire team of EURO FOOTWEAR LIMITEDand their Clients who influenced
me to work positively at each step by giving their precious time to discuss and to provide
relevant information and providing me co-operation and cardial environment for making
me comfortable during my stay in company.
I would like to dedicate this work to my revered institute IIMT, Greater Noida where I
am getting the shape of future business manager.
I express my sincere gratitude to honorable Dr. D.K. GARG (Chairman)) of IIMT,

Greater Noida for their support and guidance on the ground of which I have acquired a
new field of knowledge.
Lastly, I express my gratitude to my Parents and Friends who financed this project and
have been a moral support to me during this project.
(VARUN JAISWAL)

DECLARATION
The summer training project on 16th may 2010,title “A study of footwear business
with reference to m/s Euro footwear limited” under the guidance of Mr.Shamim
Ahmed, is the original work done by me .This is the property of institute & use of this
report without prior permission of the institute will be considered illegal & actionable.
Date: VARUN JAISWAL
Enr No.: MMR-4109
PGDMM

TABLE OF CONTENT
CHAPTER CONTENT PAGE NO.

1. Trade profile 13-28
a)History of footwear industry 13-14
 footwear industry in small scale 14-16
sector
 footwear industry in organized 16-19
sector
b)Overview and growth of footwear 19-28
industry
2. Company profile 29-36

a)Introduction 29
b)Product line and depth 30-35
c)Mission and vision 36
3. Plant and Machinery 37-57
4. Footwear research, technological and 58-76

educational organization
5. Technical knowledge used in footwear 77-80

industry
6. Prominent players in footwear industry 81-99
7. Rules and regulations and initiatives 100-134

taken by Indian government for
footwear industry
8. Risk associated with export 135-142

9. Competative advantage of export of 143-147
shoes from india
Limitations and findings 148-149
Suggestions 150
Conclusion 151
Bibliography 152
Word of thanks 153

EXECUTIVE SUMMARY
This Summer Internship Project has been undertaken for the partial fulfillment of the Post
Graduate Diploma In Management (PGDM) course from Ishan Institute of
Management & Technology, Greater Noida. The objective of the project is to learn
about the making procedure like cutting, closing and lasting of shoes and sandals,logistic
procedure and export procedure etc.I have also learnt their how they prepare all the
documents which are required for exporting the goods.They have installed the new
technology machines and equipments for the good production rate and for making the
working procedure easy for their workforce. Most of the machines have been imported
from Italy and China.They train their workforce to operate the machines.They export
shoes and sandals to U.K.,Australia,Kenia,Uganda,Dubai and other countries as well.
They always give more emphasis to quality of shoes and sandalsthat is why they check
the quality of footwear 2-3 times before export.Because of their quality and ontime
delivery they are growing like any thing and they are getting order from more companies.
With two conveyor lines to produce 2000 pairs per day of Shoes and two conveyor
dedicated for Sandal production of 1400 pairs a day the company is evermore increasing
its production capacity to meet the ever growing Market demand of Quality Footwear.

LITERATURE REVIEW
1. The Company and its Product line
2. History of footwear industry
3. Plant and machinery
4. footwear educational organization
5. Footwear technology
6. Government rules and regulations
7. Documents required for export
8. Risk associated with export
9. Prominent players
10. Conclusion

ANATOMY OF PROJECT
Each alphabet of project itself has common meaning. It is necessary to know the basic
sense of the word before going in to project work.
P for Planning
It is technique of looking ahead a constructive reviewing of future need so that present

action can be adjust in view of the established goods. It is necessary for the arrangement
of resources.
R for resource
These are helpful in promoting and functioning of planning. Resources are the material
tangible or intangible which are required for fulfilment of work.
O for Overhead expenses
These are the expenses of planning and activities. Expenses are incurred on functioning
of task are called overhead expenses.
J for Joint efforts
These are required and must in order to complete any project successfully. A better
completion can be achieved by joint and total efforts of all the persons engaged in the
work.

E for Engineering
This lead to step-by-step construction of plans so that it will be easier to formulate the
plans into action.
C for Construction
It refers to converting of plans into action. Actual work should be done to convert the
plans into a productive and meaningful work.
T for Techniques
These are need for the successful and better completion of task. Every task re-certain
technique of work to be completed.
OBJECTIVES
 To learn the making process of shoes and sandals.
 To learn the logistics procedure.
 To know about corporate culture.
 To learn how people work together .
 To learn about documentation procedure.
 To learn about government rules and regulations for export of goods.

CHAPTER-1
Trade Profile
a)History of footwear industry

In view of its immense potential for employment, growth and exports, leather industry
occupies an important place in Indian economy. The sector is spread across the formal as
well as informal sectors and produces a comprehensive range of products from raw hides
to fashionable shoes. After India ranks at the third place amongst the leather production
and export countries. With over US$ 4 billion of output, India’s exports value is at an
estimate of over US$ 2.4 billion. India is the largest livestock holding country (21% large
animals and 11% small animals). The industry employs about 2.5 million people of
which nearly 30% are women. It is a source for over 10% of the global leather
requirement.
The history of leather tanning in India dates back to 3000 BC. Tanning in the rural areas
is done by indigenous techniques, making the use of this material easier. The most
popular Indian leather products include footwear and hand bags. The footwear comes in
various designs of traditional embroidery, brocade or textile. Bright colors and unique
designs are used. The all time favorite, kholapuri chappals of Maharashtra, are soft and
very comfortable to wear. A special type of thickish shoes, called mojadis are designed in
Rajasthan. They are decorated with silk, beads and metal embroidery. Jaipur is famous
for its fancy and sophisticated footwear.Bengal is famous for its handbags in batik style
with cracks, bold curves, and traditional motifs. Being very ornamental, Kashmiri leather
items are very popular among buyers the world across.
The red leather embroidered with gold and silk is done in Madhya Pradesh. In
Hoshiarpur (Punjab), appliqué work is made in colored leather pieces. Leather with
silvery finish or metallic gold is done in Karnataka.The post liberalization era has opened
up floodgates of opportunities for the Indian leather industry. With global players looking
for new sourcing options (in addition to China), the country is uniquely positioned to gain
a bigger share of the global market. Renowned brands from the US and Europe are
planning to import leather and leather products from India. Global players who took part
at the India International Leather Fair, 2005, consider India as the market to be in.
The export of leather and leather products increased manifold over the past decades. The
export increased from Rs. 290 mn in 1956-57 and from Rs. 30760 mn in 1991-92 to Rs.
140007.33 mn in 2007-08.Today the industry ranks 8th in the export trade in terms of
foreign exchange earnings of the country. Over the years the composition of exports of
leather and leather products has also undergone a structural change, from merely an

exporter of raw material in the sixties to that of value added products in nineties. At
present the value added products constitute about 80% of the total exports from the
industry.A majority of the industry’s units are SMEs. Industrial structure, which has been
predominantly unorganized and decentralized, is gearing up remarkably. 60-65 % of
production comes from small/cottage sectors. The Indian leather industry is organized as:
Tanning and finishing, footwear & footwear components, leather garments, leather goods
& accessories (bags, wallets, belts, gloves) and Saddlery & harness articles.
 Footwear industry in small scale sector

There are nearly 4000 units engaged in manufacturing footwear in India. The industry is
dominated by small scale units with the total production of 55%. The total turnover of the
footwear industry including leather and non-leather footwear is estimated at Rs.8500-
9500 crore including Rs.1200-1400 crore in the household segment. India's share in
global leather footwear imports is around 1.4% Major competitors in the export market
for leather footwear are China (14%), Spain (6%) and Italy (21%).
India is the second largest footwear producer in the world. It accounts for 20 percent of
India's total export of leather and leather products. Major markets include the UK, USA,
Germany, Italy, France, Netherlands, Canada, Sweden and Russia. Of total exports of
footwear from India, around 64 percent goes to UK, USA and Germany.
Indian leather industry has capacity to produce l776 million pairs; 112 million pairs of
Shoe Uppers ; Non-leather footwear - 960 million pairsof non-leather footwears which
includes shoes made of rubber, moulded PVC and other material.
The Footwear Industry is a significant segment of the Leather Industry in India.India

ranks second among the footwear producing countries next to China.India produces more
of gents’ footwear while the world’s major production is in ladies footwear.
The industry is labour intensive and is concentrated in the small and cottage industry
sectors. While leather shoes and uppers are concentrated in large scale units, the sandals
and chappals are produced in the household and cottage sector.
In the case of chappals and sandals, use of non-leather material is prevalent in the
domestic market.
The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, ,
Mumbai in Maharastra, Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi.
The estimated annual footwear production capacity in 1999 is nearly 1736 million

pairs (776 million pairs of leather footwear and 960 million pairs of non-leather
footwear).

Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks,
Salamander and St. Micheal’s. As part of its effort to play a lead role in the global trade,
the Indian leather industry is focusing on key deliverables of innovative design,
consistently superior quality and unfailing delivery schedules.
India in itself has a huge domestic market, which is largely untapped.The Indian footwear
industry is provided with institutional infrastructure support through premier institutions
like Central Leather Research Institute, Chennai, Footwear Design & Development
Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the areas of
technological development, design and product development and human resource
development.
The availability of abundant raw material base, large domestic market and the
opportunity to cater to world markets makes India an attractive destination for technology
and investments.
Footwear industry in India is predominantly a cottage industry. The total estimated

production is around 500 million pairs of Footwear. Out of this, nearly 80% is from
cottage (hand made) and small scale sector. Till 1982 the production in India was
generally of conventional shoes but in 1982 the sports shoes production using latest
imported machines from Italy was started. Companies like Action, Diamond and Alishan
were some of the pioneers in the field who brought and utilised Auto Galli machines for
the first time in India.
This industry was formerly a craft industry using mainly leather as a soling and upper
material but now it has adopted a light engineering approach taking advantage of new
technologies in the form of material, process and machineries.
Estimated Production Capacity:
Product Capacity
Leather:
Hides pieces 65 million
Skins pieces 170 million
Leather products, Footwear & Footwear Components:
Shoes 121 million pairs
Leather Shoe Uppers 122 million pairs
Industrial Gloves 52 million pieces

Saddlery 0.10 million pieces.
( source-clri )
 Footwear industry in organized sector
Footwear is a necessity to every person and at the same time is now a lifestyle as also a
performance enhancement product; and is thus a segment with vast potential.
The Indian footwear market is estimated to be worth Rs.13,750 Crore and constitutes just
about one percent of Indian retail. About 37.8 percent of Footwear retail is in the
organized segment, which qualifies it as the second most organized retail category in
India, next only to Watches.
Men's footwear comprises the largest share of the organized market accounting for about
52 percent in value terms.
As footwear retailing in India has remained focused on men’s shoes, there exists a whale
of opportunity in the exclusive ladies and kid’s footwear segment. This is especially
surprising as women globally in line with global trends are the key decision makers for
buying footwear. The ladies footwear segment still remains the most untapped as nearly
80-90 percent purchases happen in the unorganized market largely due to the dressing
habits of women for whom consideration of durability or comfort are less important than
colours and designs that go with dress.
With the Indian woman becoming more brand-conscious as opposed to the past state of
being product-conscious, more and more internationally renowned players are expected
to enter the Indian market to fill this need-gap.
Volume Share of Products Segments in Footwear
(Source: IMAGES F&R Research, INDIA RETAIL REPORT)

The children's and kids' segment also accounts for a significant share due to the increased
emphasis on sporty looks. Given India’s very young population, the market for children’s
footwear is also attractive for new organized players to enter and earn supernormal
profits.
Volume Share in Footwear
The footwear market today is showing a trend where more and more competitors within
the segment are coming together and forming alliances through cross-promotions and tie-
ups benefits for enhanced reach and offering the consumer access to a wider range of
products and brands.
The London-based Carlton group became the first overseas player to enter the Indian
women’s footwear market when it set up its first store at the MGF Metropolitan Mall in
Gurgaon recently.
Growth of Indian Footwear Retail

( Value Rs. Crore at 2003-04 Prices )
The entry of speciality sportswear retailers such as Royal Sporting House, Sports Station
and Planet Sports providing the best shopping experience for customers and a platform to

showcase the world’s top sports and active lifestyle brands has transformed the organized
retailing scenario in the country. Royal Sporting House has over 40 stores in India, many
of which are placed in prime locations within shopping malls. It is the exclusive
distributor of brands such as Mizuno, Caterpillar, TYR, Dunlop Sports and non-exclusive
ones such as Reebok, Adidas, Nike and Skechers. Planet Sports, with 20 outlets in the
country, is the licensee in India for leading sports brands such as Puma, Speedo,
Converse and Wilson, among others.
The sportswear market is the only sector in India that has the presence of all three top
international brands. The year 1996 witnessed the entry of Nike, Reebok and Adidas that
gave a new dimension to footwear and fashion retailing in the country. Playful promotion
campaigns, world class merchandising and the internationally styled stores enthused
consumers to go for an extra pair of shoes and a couple of extra Tee Shirts and add a little
bit of sporty images to their lifestyle.
In the face of increasing competition from leading multinational players, domestic

footwear retailers have also woken up to the opportunity that the segment beckons and
are realizing that exposure to shopping standards abroad have made Indian consumers
demand the same formats and experience here. Responding to this challenge, major
domestic players like Bata and Liberty have significantly transformed their retail formats
to become more lifestyle- oriented and are positioning themselves as vibrant and
contemporary Indian brands.
In recent years the market has seen entry of a host of new domestic and foreign brands
like Drish, Lotto, Lotus Bawa, Now, Oakridge, Royal Elastic, Sketchers, Teenage, Teva,
Timberland and Vans. Fashionable brands like Stryde and Red Tape and MNC brands
like Allen Cooper, Franco Leone, Gaitonde, Gucci, Guess, Lee Cooper, are further
developing the market by creating new segments
Standing on the threshold of a retail revolution and witnessing a fast changing retail
landscape, the Indian footwear market is set to experience the phenomenal growth in
coming years. In past few years too, the market has seen robust growth, says “Indian
Footwear Industry Analysis”, a recent report by RNCOS. This report provides extensive
research and in-depth analysis on the Indian footwear market. The detailed data and
analysis given in the report will help the client to evaluate the leading-edge opportunities
critical to the success of the footwear market in India.
The forecasts and estimations given in this report are not based on a complex economic
model, but are intended as a rough guide to the direction in which the market is likely to
move. This forecast is based on a correlation between past market growth and growth of
base drivers.
Key Findings
 The Indian footwear retail market is expected to grow at a CAGR of over 20% for
the period spanning from 2008 to 2011.

 Footwear is expected to comprise about 60% of the total leather exports by 2011
from over 38% in 2006-07.
 Presently, the Indian footwear market is dominated by Men’s footwear market
that accounts for nearly 58% of the total Indian footwear retail market.
 By products, the Indian footwear market is dominated by casual footwear market
that makes up for nearly two-third of the total footwear retail market.
 As footwear retailing in India remain focused on men’s shoes, there exists a
plethora of opportunities in the exclusive ladies’ and kids’ footwear segment with
no organized retailing chain having a national presence in either of these
categories.
 The Indian footwear market scores over other footwear markets as it gives
benefits like low cost of production, abundant raw material, and has huge
consumption market.
The footwear component industry also has enormous opportunity for growth to cater to
increasing production of footwear of various types, both for export and domestic market
Key Players
This section provides business overview and financial status of key players in the Indian
footwear market. The key players discussed in the report are Bata India Ltd., Liberty
Shoe Ltd., Khadim India Ltd., Adidas AG, NIKE Inc. and Puma AG.
b)Overview and growth of footwear industry

Indian leather industry is the core strength of the Indian footwear industry. It is the engine
of growth for the entire Indian leather industry and India is the second largest global
producer of footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike,
Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are
manufactured under license in India. Besides, many global retail chains seeking quality
products at competitive prices are actively sourcing footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the sandals
and chappals are produced in the household and cottage sector. The industry is poised for
adopting the modern and state-of-the-art technology to suit the exacting international
requirements and standards. India produces more of gent’s footwear while the world’s
major production is in ladies footwear. In the case of chapels and sandals, use of non-
leather material is prevalent in the domestic market.

Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes,
horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are
Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.
With changing lifestyles and increasing affluence, domestic demand for footwear is
projected to grow at a faster rate than has been seen. There are already many new
domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma,
Reebok, Florsheim, Rockport, etc. have also been able to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped with In-
house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe
Design packages that are intuitive and easy to use. Many Indian footwear factories have
also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent
facilities for Physical and Chemical testing exist with the laboratories having tie-ups with
leading international agencies like SATRA, UK and PFI, Germany.
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. India, has
gained international prominence in the area of Colours & Leather Texture forecasting
through its outstanding success in MODEUROP. Design and Retail information is
regularly made available to footwear manufacturers to help them suitably address the
season's requirement.
The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing
benefits.
Strength of India in the footwear sector originates from its 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 and relatively low cost labor, proven
strength to produce footwear for global brand leaders and 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 comparative advantage for the
country.
The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that
footwear sector is the most significant segment of the Leather Industry in India.
The export targets from 2007-08 to 2010-11
(In Million US$)
Product 2006-07 2007-08 2008-09 2009-10 2010-11

Actual Export
Leather 688.05 726.85 785.00 847.80 915.63

Footwear 1212.25 1967.88 2597.60 3428.83 4526.05
Garments 308.98 358.53 372.87 387.78 403.30
Leather Goods 690.66 733.34 798.69 870.06 948.04
Saddlery & Harness 81.85 105.66 127.85 154.70 187.19
Total 2981.79 3892.26 4682.01 5689.17 6980.21
(SOURCE-FOOTWEAR INFOLINE)
India has emerged in recent years as a relatively sophisticated low to medium

cost supplier to world markets –The leather industry in India has been targeted
by the Central Government as an engine for economic growth. Progressively, the
Government has prodded and legislated a reluctant industry to modernise. India was
noted as a supplier of rawhides and skins semi processed leather and some shoes.
In the 1970’s, the Government initially banned the export of raw hides and skins,
followed this by limiting, then stopping the export of semi processed leather and
encouraging local tanneries to manufacture finished leather themselves. Despite
protestations from the industrialists, this has resulted in a marked improvement in
the shoe manufacturing industry. India is now a major supplier of leather footwear
to world markets and has the potential to rival China in the future (60% of Chinese
exports are synthetic shoes).
India is often referred to as the sleeping giant in footwear terms. It has an installed
capacity of 1,800 million pairs, second only to China. The bulk of production is
in men’s leather shoes and leather uppers for both men and ladies. It has over 100 fully
mechanised, modern shoe making plants, as good as anywhere in the world (including
Europe). It makes for some upmarket brands including Florsheim (US), Lloyd
(Germany), Clarks (UK), Marks and Spencer (UK).
India has had mixed fortunes in its recent export performance. In 2000, exports of
shoes were US$ 651 million, in 2001 these increased to 663 million but declined
in 2002 to 623 million dollars (See Statistics).
The main markets for Indian leather shoes are UK and USA, which between them
take about 55% of total exports.
India has not yet reached its full potential in terms of a world supplier. This is due
mainly to local cow leather that although plentiful, has a maximum thickness of 1.4
– 1.6mm, and the socio / political / infrastructure of the country. However, India
is an excellent supplier of leather uppers. Importation of uppers from India does not
infringe FTA with Europe or the USA.
The potential is set to change albeit slowly, but with a population rivalling China for
size, there is no doubt the tussle for world domination in footwear supply is
between these two countries.

Few Interesting Facts:
- The Indian footwear retail market is expected to grow at a CAGR of over 20% for the
period spanning from 2008 to 2011.
- Footwear is expected to comprise about 60% of the total leather exports by 2011 from
over 38% in 2006-07.
- Presently, the Indian footwear market is dominated by Men's footwear market that
accounts for nearly 58% of the total Indian footwear retail market.
- By products, the Indian footwear market is dominated by casual footwear market that
makes up for nearly two-third of the total footwear retail market.
- As footwear retailing in India remain focused on men's shoes, there exists a plethora of
opportunities in the exclusive ladies' and kids' footwear segment with no organized
retailing chain having a national presence in either of these categories.
- The Indian footwear market scores over other footwear markets as it gives benefits like
low cost of production, abundant raw material, and has huge consumption market.
- The footwear component industry also has enormous opportunity for growth to cater to
increasing production of footwear of various types, both for export and domestic market.
Growth of footwear industry
 The footwear sector is a very significant segment of the Leather Industry in India.
 Footwear is the engine of growth for the entire Indian leather industry and India is
the second largest global producer of footwear after China, accounting for 14% of
global footwear production. of 14.52 billion Pairs.
 India Produces 2065 million pairs of Different 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.

 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.
 Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes,
Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber,
plastic, P.V.C. and other materials.
MNC Brands sourced MNC Brands Sold in India Indian Brands sold in India
from India
Acme, Clarks, ColeHann, Aldo, Bally, Clarks, Ecco, Red Tape, Bata, Liberty,
Deichmann, Ecco, Florshiem, Ferragammo, Khadims, Lakhani, Metro,
Elefanten, Florsheim, Hush Puppies, Lee cooper, Action
Gabor, Hasley, Hush Lloyd, Marks & Spencer,
Puppies, Double H, Justin, Nike, Nine West, New
Marks & Spencer, Nautica, Balance, Reebok, Rockport,
Nike, Nunn Bush, Reebok, Stacy Adams
Salamander, Stacy Adams,
Tony, Lama, Next, Bally
 Nearly 75% of India’s Export of Footwear is to the European Countries and the
USA.
 The Indian Footwear Industry provides employment opportunities to a total of 1.1

million people, mostly from the weaker sections of the society. Out of this, about
0.2 million are employed in the organized sector, 40% of whom are women.
Remaining 0.9 million people are engaged in unorganized footwear sector like
rural artisans, cottage and household units etc.
 The Footwear Sector is now de-licensed and de-reserved, paving the way for
expansion of capacities on modern lines with state-of-the-art machinery. To
further assist this process, the Government has permitted 100% Foreign Direct
Investment through the automatic route for the Footwear Sector.
India’s Export of Footwear – Last 10

Years (Value in Million US$)
1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007-

Product 1998-99 2000 01 02 03 04 05 06 07 08

Footwea 655.3 625.2 767.7 910.7 1045. 1236. 1475.

r 575.49 606.60 638.57 5 5 3 7 24 91 83

-
% 2.63 4.59 22.79 18.63 14.76 18.34 19.32
Growth 7.05% 5.41% 5.27% % % % % % % %
India’s Footwear Export Growth over the last Four Decades
Footwear export has increased from US$40.15 million in 1977-78 to US$ 1475.83
million in 2007-08
Chart showing Global Import of Footwear Vs India’s Export of Footwear
India’s Exports of Footwear – Country-wise Share in Total Exports (2007-08)
( SOURCE-COUNCIL FOR LEATHER EXPORT)

Major Markets for Indian Footwear:
The European Union and the USA are the major markets for Indian Footwear accounting
for 79.95% and 9.22% share respectively in India’s total footwear export. The major
markets for Indian Footwear are Germany 16.66%, UK 16.31%, Italy 15.32%, USA
9.22%, France 7.81%, Spain 5.10%, Netherlands 4.91%, Portugal 2.50%, UAE 2.48%
and Denmark 1.18%. These 10 countries together accounts for nearly 81.49% of India’s
total leather products export.
Country-wise export of Footwear from India – 5 years
(Value in Million
US$) CAGR
Growth
Country 2003-04 2004-05 2005-06 2006-07 2007-08 %
Germany 146.23 164.73 170.97 217.23 245.92 13.87%.
UK 154.44 192.62 195.78 208.2 240.77 11.74%.
Italy 107.65 103.63 134.35 186.11 226.10 20.38%.
USA 89.17 107.34 131.07 127.15 136.01 11.13%.
France 50.84 64.84 74.48 99.81 115.24 22.70%.
Spain 38.06 46.86 63.7 64.57 75.22 18.56%.
Netherlands 20.09 20.03 32.96 48.57 72.49 37.82%.
Portugal 15.12 18.75 22.15 35.03 36.86 24.95%
UAE 14.94 18.36 25.78 34.64 36.61 25.11%
Denmark 11.7 13.75 18.37 14.65 17.44 10.49%
Australia 8.44 8.00 11.58 10.11 12.48 10.27%
Sweden 6.29 6.95 6.77 7.99 12.04 17.62%
Canada 8.71 9.84 11.95 10.91 10.41 4.55%
South Africa 7.23 6.72 8.26 12.11 8.54 4.25%
Japan 2.01 2.55 3.17 3.07 4.63 23.19%
Others 86.81 125.8 133.9 156.76 225.07 26.89%

Total 767.73 910.77 1045.24 1236.91 1475.83 17.74%
( Source: DGCI&S)
Indian Footwear Industry - A Vision Document 2010
Footwear is the engine of growth of the leather industry, currently accounting for an
export value of US$1212 million, holding a major share of 41% in India’s total leather
trade. Considering this fact, we have set an ambitious target of US$ 4.5 billion in respect
of Footwear export from India by 2010-11 where the overall export of leather products
will reach US$6.98 billion, wherein footwear alone will account for a share of 65% in
India’s total leather export trade.
Current Export of Footwear and Projections by 2010-11
Investment Opportunities:
 The Government of India is keen to promote investments into the Indian leather
sector, and for this purpose, it has radically simplified and rationalized the
policies, procedures and regulatory aspects.
 The current industrial policy is very conducive to the promotion of Indian leather
industry both in terms of domestic trade as well as exports.
Recent / proposed FDIs, Joint Ventures in Footwear Industry
Zahonero Virgili SL, Spain (FDI)
Conceria Virginia, Italy (Joint Venture with Forward Group)
Top Fondi, Italy (Joint venture with Farida Group)

Xie Zhan Moulds, China (Joint Venture with Farida Group)
Formas Kunz, Brazil - This facility is coming up in Footwear Component Park, Chennai
Feng-TayEnterprisesCo.Ltd.,Taiwan
This is a SEZ proposed in an area of 275 acres, coming up in SIPCOT Industrial Estate,
Cheyyar(TN). Feng Tay is a manufacturer of sports shoes, skate shoes and casual shoes
for Nike and other global brands
Apachefootwear,China
This FDI is coming up in Tada Mandal, Nellore(AP), in an area of 340 acres. Apache is a
supplier of shoes for Adidas and has manufacturing facilities in China
Takplast, Italy (a company producing soles and heels) signed a JV with an Indian
company in Chennai
Suolificio Mazza, Italy (a company producing leather soles) has decided to start up
production in India also, in Chennai.
Ge.Ma.Ta, Italy (a company producing tanning machines) is currently defining a JV and

will very soon start up its activities in Ranipet
Shosen, Italy (a company producing leather goods articles, in particular high quality
bags. In Italy, it produces also for Prada) is defining a project with an Indian leather
goods company to start up activities in Kolkata
Cobaa, Italy (a company producing insoles) is concerned in investing in India (initial

phase)
Bartoli, Italy (a company producing fibreboards) is studying an investment project in

India
Ipr, Italy (a company producing PU and TR/ Rubber soles) is involved with seeking a
partner to invest in India
Future Prospects:
Future growth of Indian footwear industry in India will continue to be market driven and
oriented towards the European and the US markets. Technology partnerships with major
merchandising houses in USA and market leaders in Europe are decided advantages in
the integrated developmental plan of India. Investment backed technology support for
footwear component industry is being sought to be outsourced.

o Footwear is the engine of growth of the leather industry, currently
accounting for an export value of US$1212 million, holding a major share of 41% in
India’s total leather trade.
o We have set an ambitious target of US$ 4.5 billion in respect of Footwear
export from India by 2010-11 where the overall export of leather products will reach
US$7 billion, wherein footwear alone will account for a share of 65% in India’s total
leather export trade

CHAPTER-2
Company Profile
a)Introduction
Right from inception in 1988 under the able guidance of Mr. Mehboob Rehman and Mr.
Khalid Shamsi, Euro Footwear Limited has ever since been committed to produce Quality
Footwear and deliver “Value for Money” to its valued Customers.
Slowly evolving from an upstart company to become the leader in the League of
Footwear exporters, it indeed has covered a long distance.
As the age old adage goes, “ The finesse of a craftsman shows through his work”
Our products do speak of our commitment to Quality. Geared with state of the Art latest
Italian Machinery and handpicked team of technicians, equipped with the best
knowledge of the latest market trends and footwear technology work in tandem with the
in house Quality assurance group to deliver the best of footwear to the national as well
as international market.

Be it production of Sandals, Mocassins, Formal or Casual shoes or Riding Boots, major
stress is laid; upon Quality and scheduled delivery at all costs.
To fortify our commitment the company is now migrating from ISO 9002 to
internationally accepted and acclaimed ISO 9001 Quality Management System to further
assure and insure compliance to our commitment at all and any cost.
With two conveyor lines to produce 2000 pairs per day of Shoes and two conveyor
dedicated for Sandal production of 1400 pairs a day the company is evermore
increasing its production capacity to meet the ever growing Market demand of Quality
Footwear.
At each and every point of production Process it has been instilled in the minds of the
production staff to observe not only quantitative but Quantitatively-Qualitative
production. And the supervising staff works hands in gloves to meet optimum
Qualitative production quantities.

b)Product line and depth
Euro footwear limited make causual shoes,formal shoes and sandals. They are like this-
 Casual footwear

Style : 8263 Style : 8780 Style : K-986

Style : M-11173 Style : 11182 Style : K-2081

Style : 10930 Style : 10539 Style : 10125


Style : 31784 Style : K-2077 Style : ES-6161


Style : 10437 Style : K-940 Style : 9104



Style : 7021 Style : 10661W Style : 10081

Style : 10083 Style : K-2074 Style : 10661

Style : K-1934 Style : 10421 Style : 11133




Style : B-10921
Style : B-10921
Last : TURNER
Upper/Color : Cow Siesta Navy/Beige
Linning/Color : DC Beige
Sole : TURNER PU

 Formal footwear

Style : 10292 Style : 10083 Style :

Style : 10368 Style : 10399 Style :
 Sandals

Style : L-330 Style : L-069 Style : L-071



Product Depth
The shoes and sandals are of different kind like-
 Shoes with laces

 Shoes without laces
 Sandals with back stripe
 Sandals without stripe

C) Mission and Vision
Mission of the company

Our mission is to achieve & embrace the global leader’s position by strictly following all
our core values. We endeavor to reach to new heights of success and further extend to
new horizons.
Vision of the company

Our vision is to maintain standered quality, tech savvy machines, and other components
for optimizing the production capacity and lowering the cost to minimum. We strive to
appease of our global customers with our customized solutions, core values, high quality,
cost-effectiveness, timely delivery and customer-centric services.

CHAPTER-3
Plant and Machinery
This is the plant of Euro footwear limited. In the plant there are several departments like-
1.Cutting Department-
In the cutting department shoe components are prepared.
Machines used in cutting department-
a)Clicking machine-
Range of Applications
Manual die cutting of materials such as foam, textiles, plastic, rubber, packaging, vinyl,
leather, composites, fiberglass, cork, wood, gasket materials (non-asbestos, teflon, etc.)
and more

APM-SA22
Specifications
Model APM-SA22 APM-SA27 APM-SA27L

Pressure 22 Tons 27 Tons 27 Tons
Max. Stroke 3.15" (80 mm) 3.74" (95 mm) 3.74" (95 mm)
Motor 1 HP / 0.75 kw 1 HP / 0.75 kw 1 HP / 0.75 kw
Cutting Table 17" x 35.4" (430 x 900 20" x 40" (500 x 1000 20" x 40" (500 x 1000

mm) mm) mm)
Beam Width 14.6" (370 mm) 20" (500 mm) 24" (610 mm)
Dimensions (US) 35" x 34" x 51" 40" x 42" x 58" 40" x 42" x 58"
Dimensions 1000 x 1050 x 1475 1000 x 1050 x 1475
900 x 850 x 1300 mm
(Metric) mm mm
Net Weight (With
1600 lbs. (727 kg) 2400 lbs (1090 kg) 2445 lbs (1110 kg)
Oil)
b)Beam machine-
Additional files
MODEL :K5
MAIN FEATURES
Double automatic end of stroke adjustment in order to use knives of different heights
without any setting-up or electrical end of stroke. Timed adjustable cutting plate
upstroke. Adjustable travelling head return. Photoelectric cell protection for traverse
and cutting. With control on the bar and push-buttons.

TECHNICAL DATA
SPECIFICATION MOD 1 MOD 2 MOD 3
WORKING AREA 1700x530 mm 2000x530 mm 2000x660 mm
CUTTING PLATE 530x530 mm 530x530 mm 500x660 mm
25 ton 25/32 ton 32 ton
CUTTING FORCE
10-150 mm 10-150 mm 10-150 mm
ADJUSTABLE
2 HP 2 HP 2 HP
CUTTING STROKE 0,75 HP 0,75 HP 0,75 HP
PUMP MOTOR 2110x1600x2350 2420x1600x2350 2420x1730x2350
TRAVERSE 1630 Kg 1800 Kg 1880 Kg
MOTOR
SIZES WITH FEED
ASSEMBLED
MACHINE (mm)
NET WEIGHT
WITH OIL

600x660 mm 500x750 mm 750x750 mm
CUTTING PLATE
32 ton 32 ton 32 ton
CUTTING FORCE
10-150 mm 10-150 mm 10-150 mm
ADJUSTABLE
2 HP 2 HP 2 HP
MOTOR
SIZES WITH FEED
ASSEMBLED
MACHINE (mm)
NET WEIGHT
WITH OIL

800x800 mm 750x750 mm 800x800 mm
CUTTING PLATE
32 ton 32 ton 32 ton
CUTTING FORCE
10-150 mm 10-150 mm 10-150 mm
ADJUSTABLE
2 HP 2 HP 2 HP

MOTOR
SIZES WITH FEED
ASSEMBLED
MACHINE (mm)
NET WEIGHT
WITH OIL
Beam machine is used to make shocs.
c)Skiving machine- It is used to cut the side of shoe components so that they could
easily attached with each other.
COMPUTERIZED SKIVING MACHINEMODEL : SS20
The SS20 was born from the accurate application of modern mechanical and
electronic technology. It represents a major departure from the traditional skiving
machine. The computer installed in the SS20 has made it possible to introduce some
unique features. The machine, in fact, is constantly monitored, it adjusts itself
automatically and stays perfectly efficient while in operation. All functions are
performed by mechanical units driven by independent motors operating under the
direct control of the computer. The original structure of mechanical units has made it
possible to use a tilting electro-spindle, thus allowing an immediate accessibility to
mechanical parts and an easier knife and grindstone replacement. The console can be

easily reached and the data displays are very clear. An efficient dust collector is built
in the frame of the machine.
KNIFE POSITIONING
The gap between the cutting edge and the presser foot is preset by the operator with
micrometric precision. An automatic device enables this gap to be maintained by
moving the knife forward as it wears out. This very important automatic device
provides for the maintenance of a high level of skiving efficiency and avoids frequent
and accurate adjustments.
KNIFE SHARPENING AND GRINDSTONE DRESSING

These two operations, which in traditional machines cause a remarkable loss of time,
are automatically performed by the machine, according to the parameters chosen by
the operator (pressure, duration and interval). It is also possible to have the machine
performing continuous sharpening for special skiving works. The operator can activate
and deactivate knife sharpening and grindstone dressing at any time, within his or her
own discretion.
WORK-PIECE FEEDING
The feed roller turns, by choice of the operator:
- continuously, at the predetermined speed
- at a variable speed, controlled by a pedal.
In both cases the work feeding speed can be very accurately set and it is not
influenced by thickness and toughness of the material being processed.
These features make the skiving of workpieces with a complicated outline very easy.
A knee operated switch lifts the presser foot to release the workpiece at any moment.
SKIVING
Skiving parameters:
- thickness
- width
- angle
- feed speed
are shown on a display and can be micrometrically adjusted.
The operator adjusts skiving parameters and the data are automatically stored in
memory, in the activated section.
There are two scarf width guides:
- movable
- fixed.
Both are present at the same time and can also be alternatively used on the same
workpiece.
The movable guide allows a fine adjustment of the scarf width. It is possible to
program its disappearance under the work area to allow the use of the fixed guide.
This guide, positioned under the presser foot near the knife, is perfect for complicated
skiving and for workpieces with very tight curves.
The unavoidable presser foot wear can be compensated directly through the control

board of the machine for every scarf at the same time, to guarantee constant skiving
quality.
DATA STORAGE
The machine has a memory for 800 different types of scarf (100 groups of 8) and each
one is immediately accessible.
It is sufficient to press a button to recall the required type of scarf.
The operator can improve or modify the current scarf parameters configuration at any
time. The new adjustment is stored in memory, replacing the former data.
WORK-PIECE PROCESSING WITH DIFFERENT SCARVES

For those work-pieces which profile requires different skiving styles it is possible to
program the necessary sequence.
The operator has only to recall on the sequence display the required types of scarf in
the correct order. Afterwards, just a slight pressure on the pedal will make the
machine shift from one configuration to the next.
It is also possible to store these sequences in memory, making use of the ample and
versatile memory of the machine.
TECHNICAL DATA
SPECIFICATION
SCARF WIDTH 0 - 20 mm
FEED RATE 0 - 75 cm/sec
KNIFE 2700 rpm
ROTATION dependent on work-piece shape
SPEED 380 V three-phace (single phase upon request)
PRODUCTIVIT 1200 W
Y 135 Eg
POWER 1030x1050x550 mm
SUPPLY
MAX POWER
CONSUMPTION
NET WEIGHT
DIMENSIONS
(HxWxD)
d)Fusing machine-
It is used to attach the backer cloth inside the shoe components.

2.Closing Department-
In this department shoes components are tailored with each other.
Machines used in closing department-
a)Sewing machine-

3)Lasting Department-

In this department upper part of shoe is attached to insole and sole. After that shoe has
been polished and packed.
Machines used in lasting department-
a)Moulding machine-
MULTIFORM99
VERSATILE BACKPART MOULDING MACHINE WITH TWO HOT &
TWO COLD STATIONS.
MULTIFORM 99 shapes with the same ease high quality women's, men's and
children's uppers, as well as boots, moccasins, and mini counters.
3 revolutionary patented systems:
Divided pincers with an over-stretching system.
Rotating cushion system with integrated wipers.
New airbag system.
The precision projector ensures correct and accurate size back height
Easy replacement of the moulds
The activating temperatures are controlled by electronic digital thermoregulators
The attachments of mini counter, moccasin and airbags forming are OPTIONAL

DIVIDED PINCER SYSTEM
The position of each Divided Pincer is adjusted independently
according to the perimetrical shape of the aluminum last
The angle of the Pincers can be adjusted according to the heel height
OVER-STRETCHING SYSTEM
For specific uppers that require more stretching

HOT STATION PINCERS
Precise pincer pulling with electronic control New generation, hot
station design, fully adjustable for flat and high level heel uppers (up
to 120mm)
ROTATING CUSHION SYSTEM WITH INTEGRATED

WIPERS
MINI COUNTER MOULDING
The new rotation cushion technology gives you total control in the
difficult procedure of mini counter shaping

MOCCASIN MOULDING

For moccasin uppers shaping, the cushion rotates 180o placing the
wipers in front of the operator.
Since the moccasin last is short, the wiper system can be lowered to
70 mm to approach it. CONVERTING TIME: 3MIN.
TUBULAR AIR BAG

MULTIFORM 99 can be delivered either with cushions with
integrated wiper system or tubular air bags without wipers or both
systems on customer demand.CONVERTING TIME from Wiper to
Airbag: 10MIN.
MINI COUNTER DEVICE
Second Option for Mini Counter's Shaping (For cases where stripes
can not be applied)
Easy to use
Quick & Perfect Shaping
CONVERTING TIME: 4MIN.

TECHNICAL DATA
SPECIFICATIONS
OPERATION Electro-Pneumatic
PRESSURE 6Bar
CAPACITY 1100 pairs per 8 hours max.
VOLTAGE 230V single phase 50Hz
POWER CONSUMPTION 2500 W
DIMENSIONS (mm) 1780X770X2000h
WEIGHT 560Kgs
b)Toe lasting machine-
It is used to attach front part of shoe with insole with the help of adhesive called white
cement.

C)Side lasting machine-
It is used to attach side portion of shoe with insole with the help of adhesive called
yellow cement.
D)Heat setter-
It is used to give shape to the shoes.
HIGH PERFORMANCE HEAT SETTLERS

MODEL : 290 - 291 - 211
High performance heat settlerto ironing and conditioning shoes and boots lasted on last
- STAINLESS STEEL IRONIG CHAMBER ANDCONVEYOR BELT
- CONVEYOR SPEED ADJUSTABLE FROM1 min. TO 10 sec

- STEAM QUANTITY ADJUSTABLE UP TO 3000 cm3 / h
- TEMPERATURE ON DISPLAY ADJUSTABLEUP TO 200o C (392o F)
- RINK SYSTEM COMPATIBLE
TECHNICAL DATA
SPECIFICATIONS MOD 290 MOD 291 MOD 211 MOD 293

DAILY 1000 pairs 2000 pairs 500 pairs in 3000 pairs
PRODUCTION in 8 hours in 8 hours 8 hours in 8 hours
AIR 80 lt. / min 80 lt. / min 80 lt. / min 80 lt. / min
CONSUMPTION AT 65x200x15 95x230x15 65x185x15 95x280x15
6 BAR 4 cm 4 cm 4 cm 4
DIMENSIONS 310 Kg 370 Kg 310 Kg 500 Kg
NET WEIGHT 400 Kg 460 Kg 400 Kg 630 Kg
GROSS WEIGHT 490 Kg 550 Kg 490 Kg 760 Kg
WITH CRATE
GROSS WEIGHT
WITH CASE

E)Bottom roughing scouring machine-
It is used to rough the bottom of shoe so that it could easily attach to the sole.
F)Cementing tank-
It is used to paste the adhesive in sole and bottom part of shoe.

G)Horizon dryer-
It is used to dry the glue.
H)Sole reactivator machine-
It is used to give heat to sole so that it could easily attach to the shoe.

I)Sole embrossing machine-
It is used to press the sole so that it could attach to the shoe.
J) Chiller machine-
It is used to dry the adhesive so that sole does not loose from shoe.

K)Unlasting machine-
It is used to remove last from shoe.
L) Boot Ironing machine-

It is used to give shape to the long boot.
M)Shoe polishing and brushing machine-
It is used to polish the shoe and give them shining.
N)Stamping machine-

It is used to make the tag of different brands.
O)Conveyer machine-
It is the belt on which shoe moves through different processes.
P)Toe steamer machine-

It is used to give steam to the front part of the shoe so that it could become soft and easily
attached to the insole.
CHAPTER-4
Footwear research,technological and educational organization
There are so many colleges who provide footwear education and some of the
organization do research on footwear and so many companies which gives advance
machines so that footwear companies could reduce their time of production and increase
their profit.These institutes are-
Central learther research institute
The World's largest Leather Research Institute, was founded on 24 April, 1948. CLRI
made an initiative with foresight to link technology system with both academy and
industry.
CLRI, today, is a central hub in Indian leather sector with direct roles in education,
research, training, testing, designing, forecasting, planning, social empowerment and
leading in science and technology relating to leather.

State-of-art facilities in CLRI support, innovation in leather processing, creative
designing of leather products viz. leather garment, leather goods, footwear and
development of novel environmental technologies for leather sector.
Objectives
Central Leather Research Institute, India was founded on 24 April, 1948. It was a land
mark decision of the country born at the mid- night of 15th August 1947, to invest into
leather research. In 1947, the export basket of India included mostly raw hides and skins.
There remained an untapped opportunity for India in leather sector for economic
development, employment generation and export earnings. The missing link was addition
of technology to the manufacturing base of Indian leather sector. CLRI was founded to
develop an internal strength in the country to generate, assimilate and innovate
technologies for leather sector.
It is one matter to design and develop technologies but entirely another to reach viable
technologies in a traditional sector like leather. CLRI in 1948, made an initiative with
foresight to link technology system with both academy and industry. CLRI assumed the
role of being a part of the University of Madras in imparting education in leather
technology. The seed sown in 1948 has now grown into a tree with nearly 60% of the
industry in India being manned and managed by the Alumni of CLRI.
leading in science and technology relating to leather. Looking back, CLRI seems a
worthwhile investment of India in a sensitive industrial segment of a Nation.
CLRI is vying to emerge a global leader in leather research. The technological services of
the institute are as durable as leather. Leather and allied research in CLRI form core areas
of activities. There is critical strength for research and development in some critical areas
of sciences and technology. Research in CLRI includes non-leather as well.
Leather today co-exists with number of non-leather fabrics. Complementality of non-

leather materials with leather is as real as the uniqueness of leather. While man made
many non-leather materials look like leather, the Nature made material has defied
mankind through its architectural marvel and kindness to human skin.
Skin is unmatched in its architecture. Size distribution and connectivity of pores make
skin breathe and thermo-regulate. Perspiration is Nature's way of relating body to the
ambience. Well made leather preserves the unmatched property of skin. Human feet
fluctuate in volume through the day. The visco-elastic material, leather, readjusts the
changing volume of feet, when the shoe is made right. Gentle and kind is leather on
human feet. Synthetics strive to perform like leather; but the original is leather that the
other materials need to ape.
Leather is great; but the demand is larger than supply. With a mismatched demand-supply
gap for hides and skins, leather and non-leather have come to coexist and complement.
They are look alikes for leather; but the true like of leather is leather alone.
CLRI: A Technology Supermarket in Leather
CLRI strives to marry leather to its diverse functions. CLRI plays today a supermarket for
leather related technologies.The strength of CLRI stems from the competence of the people,
R&D infrastructure, linkages with the users.
CLRI MANDATE
 To seek excellence in research in Frontier areas

 To serve the national apex body in leather
 To Participate in HRD through direct role in education and training in leather
related areas
 To assess and forecast technology needs
 To serve as a reliable consultant to leather sector
 To develop technologies and deliver to the industry through effective extension
network
 To serve as a dependable source of technologies and
 To provide a technology supermarket for users

Milestones
Milestones Looking Back - Six Decades
1948 24th April, 1948 Foundation Stone laid by Hon'ble Dr. Shyama Prasad
Mookherjee, the then Minister for Industry and Supply, Government of India
&Vice President of Council of Scientific and Industrial Research, New Delhi
1953 15th January, 1953 the Institute Main Building was formally inaugurated by
Hon'ble Shri T.T.Krishnamachari, the then Minister for Commerce and Industry,
Govt. of India
1964 Organised 1st International Leather Fair and 1st Leather Fashion Show
1985 Triple Helical Structure of Collagen discovered by Prof.G.N. Ramachandran of

Madras University in association with CLRI
1993 Shanti Swarup Bhatnagar Prize (Chemical Sciences) awarded to Dr.

T.Ramasami, Director
1994 Futurology Exercise for Indian Leather Industry organized (Indian Leather
2010)
1995 Leather Technology Mission launched

1996  Shanti Swarup Bhatnagar Prize(Chemical Sciences) awarded to Dr.
N.Chandrakumar, Scientist G
 Cleaner Leather Process Technologies demonstrated in 570 tanneries in
Tamil Nadu thus prevented from closure based on Supreme Court
Order
 CLRI Vision 2005 released
1998 Awarded Third World Network of Scientific Organisations Award for Innovations
in Microenterprises
1999  Organised International Union of Leather Technologists and Chemists

Society Congress at CLRI, Chennai - the First Congress held outside
Europe
 Organised Modeurop Show in Chennai - the first meeting held outside
Europe
2000  Awarded the Millennium Medal (Science Congress) and MRSI Medal
 Mr. Md. Sadiq, Scientist, SDDC of this Institute is elected as the
president of MODEUROP Congress for 2000-2001
 TANSA 2000 award conferred to Dr. R. Jayakumar, Scientist E II
2001  Dr. T. Ramasami, Director CLRI has been conferred the Coveted
National Civilian Award "PADMASHRI" by the President of India on the
26th January 2001, for his outstanding contribution in the field of
Science and Technology
 Dr. T. Ramasami has been elected as a fellow of the Third World
Academy of Sciences (2001)
 John Arthur wils on Memorial Lecture Award to Dr. T. Ramasami,
Director (2001).
 Chemical Research Society of India Medal to Dr. B.V. Nair Scientist F
(2001)
 Council for Leather Exports (CLE) design award for Leather Apparel for
year 2001 to CLRI
2002 CLRI prepared a major working group document for the planned development
of Indian Leather Sector during Tenth plan period (2002-2003) and submitted
to Ministry of Industry, Government of India.
Linkages with Industries
In the CSIR family, CLRI is one of the important laboratories maintaining very close
links with the industry – both decentralised and organised sectors. The Institute has taken
the industry into confidence and working in tandem in all its phases of development.

During 70s the industry was mostly exporting raw hides and skins. Based on
Seetharamaiah Committee recommendations, in 1973, the Government has banned the
export of raw hides and skins and introduced quota on the export of semi-finished
leathers and several incentives for exporting finished leathers and products. As a result
and many positive developments both within and outside the country, the structure of the
industry has undergone changes in a phased manner.
During early 80s India’s export basket consisted of mainly finished leathers. But mid-80
onwards the share of leather products has been gradually increasing. At present more than
80% of India’s leather exports consist of finished products.
CLRI has been playing a vital role in this transformation. On one side, it has been playing
advisory role to Government in framing the industry-friendly policies and on the other
side helping the industry by extending all technical advice and necessary technologies
and technical manpower and made growth of the industry smooth and dynamic. The
Government’s policy to export more value added products which can generate more
employment and earn higher foreign exchange was well appreciated by the industry.
The Institute has been extending the required help to the industry in major areas such as
leather process technology, leather chemicals, effluent treatment, product design and
quality standardization value addition to by-products and improving/supplying the trained
manpower required for different sectors of the industry. To serve the industry in time and
more effectively and also to meet the regional requirements of the industry, CLRI started
five Regional Centres – one each at Calcutta, Kanpur, Jalandhar, Ahmedabad and
Mumbai. These centres are working as nodal centres in transfering technologies,
attending trouble-shooting problems, testing and in training the human skills required by
the local industry. The feed back from the industry is crucial in framing the CLRI’s R&D
activities. In addition to meeting the Industry Associations/ Representatives periodically,
since early 60s this Institute has been organising Leather Research-Industry Get-Together
(LERIG) annually – initially this event was called Tanners Get-Together (TGT).
As early as 1964, the Institute took initiative in organising International Leather Fair and
a Fashion Parade within CLRI campus. These two major events have became annual
features in CLRI calendar until 1985 when Indian Trade Promotion Organisation took
over the responsibility of organising trade fair and fashion show. These two events along
with Tanners Get-Together were the result of Dr.Y.Nayudamma’s Vision. The industry
representatives are included in all the important committees of the Institute. Thus the
Institute has established a close bondage with the industry since inception and year after
year this association is becoming more stronger.
CLRI is one of the few research laboratories of the World to have a strong Academy-
Research-Industry partnership linkage. Thus the Trinity – the University, R&D
Laboratory and the Industry – linkages are not only strong, but it has been working
effectively and profitably.

The Institute has forged strong industry-research linkages through the Council for
Leather Exports (CLE), the All India Skin, Hides, Tanners and Merchants Association
(AISHTMA), the Indian Finished Leather Manufacturers & Exporters Association
(IFLMEA), Indian Shoe Federation (ISF), the Leather Chemical Manufacturers
Association (LCMA), the Footwear Design and Development Institute (FDDI), National
Institute of Fashion Technology (NIFT), National Institute of Design (NID), National
Leather Development Programme (NLDP), the Indian Institute of Chemical Engineers
(IIChE), the Indian Leather Technologists Association (ILTA), etc.
Today many National Institutes and universities are trying to emulate CLRI’s role model
in interacting with industry. Indian leather industry’s involvement and response to the
Institute’s activities have been always complete.
Linkages with international organisations
CLRI has been closely associated with many International Organisations like UNIDO;
FAO; UNDP; TNO (The Netherlands); the British Leather Confederation (BLC), UK;
CTC, France; CESECA, Italy; IRDLAI, Indonesia; SATRA, UK and IDRC,
Canada,CSID, Australia, University of Amsterdam
Many CLRI Scientists/Technologists were deputed to other developing countries like

Sudan, Nigeria, Iran, Srilanka , Bangladesh and more recently to Ethiopia, to help the
local leather industry. This Institute played a key role in establishing Leather Research
Institutes in both Nigeria and Iran. The Institute has been closely associated with other
Leather Research Institutes in UK, China, Indonesia and many other countries.
CLRI has been maintaining regular interaction with SATRA of UK and established a
state-of-the-art testing laboratory for shoe and footwear components
CLRI has been closely involved with many National and International Associations
connected with leather industry. The International Union of Leather Technologists and
Chemists Societies (IULTCS), a century-old London based body has been organising
International Congress once in two years. The XXV Congress was held in India during
27-30 January 1999 where 130 overseas and 400 national delegates were participated.
CLRI has organised this landmark event in association with Indian Leather Technologists
Association (ILTA). This is the first time that this important congress is being held in the
Asian region.
Recently CLRI organized an International Conference on Recent Trends in Collagen to

commemorate the Diamond Jubilee of Central Leather Research Institute during 24-25
January 2008 where 7 overseas and 164 national delegates participated. Collagen is the
central science in leather research. The conference addressed important areas such as
Collagen: Structure & Functions, Diseases, Smart Bio-Materials and clinical applications,
Health-Care Bio-Technology, Wound Management with Collagen, Recent advances in
CollagenResearch,Commercialventuresetc.
Contributions to science
CLRI has been one of the premier R&D organisations with strong foundation in both
basic and applied research in leather and allied sciences. The major departments engaged
in the fundamental research area include Biotechnology, Biomaterials, Bacteriology, Bio-
products, Polymer Science & Technology, Chemistry, Biophysics, Environmental and
Chemical Engineering, NMR, etc. At any given point of time about 30-40 research
students are working for Ph.D. under Madras/Anna Universities. During 1999-2000, 177
papers were published in International and National Scientific Journals. Number of
awards and honours were bestowed on CLRI scientists
Two of our scientists got the coveted Shanti Swarup Bhatnagar prize for chemical
sciences in 1993 and 1996. Several scientists of this Institute have been elected
members/fellows of the prestigious science academies of the country.
Seeking excellence in science is the emerging culture in CLRI. Recent major

contributions at CLRI relate to insights into the structural aspects of collagen, nutritional
disorders relating to collagen, aqueous chemistry of chromium, structural stability of
chrome-collagen compounds, vegetable tannin resources, development of novel NMR
techniques, molecular understanding of chrome tanning, assembly and organisation of
small to macro molecules, thermodynamics of self-assemblies and micellar formation,
interpenetrating polymeric networks, controlled drug delivery systems, new synthetic
methods for polymers, transport phenomena and new analytical testing for eco-sensitive
chemicals.
Applied research work has been carried out in new and innovative techniques for leather
processing, upgradation of low grade materials, technologies for manufacture of chemical
auxiliaries, animal and tannery byproducts utilisation, biotechnology for leather
processing, chrome recovery and reuse, cleaner production systems, tannery waste water
treatment, effluent control and minimization, modernisation of tannery wet operations,
high performance and environment-friendly synthetic tanning agents, surgical sutures and
collagen for burn management.
As a result of sustained R&D activities, the Institute has developed number of

technologies and successfully transferred to the industry.
Central Footwear Training Institute

Agra has been renowned at the national and international levels as a centre for
educational excellence, and industrial developments apart from tourist attraction. The city
not only attracts foreign visitors for site-seeing but the industries like Leather, Foundry
and Handicrafts also made it very popular across the globe.

Although the Footwear manufacturing in this area had started centuries before Indian
independence, but the sector was not fully developed, as the basic infrastructure was not
available at that time. It was actually beginning of sixties when the leather producers and
other entrepreneurs thought of value addition to leather by converting it into footwear and
other leather goods as the basic raw material i.e. leather was available in abundance.
Although, the skilled workforce was available in plenty in some parts of the country, but
there was acute shortage of managerial and the supervisory staff with technical
qualifications. This was a severe problem and was acting as a major hindrance in the
development of the footwear industry in the country. To overcome this problem,
Government of India established "Central Footwear Training Centre , Agra" in July 1963,
under Small Industries Development Organization, Ministry of Industry with financial
assistance from Ford Foundation. The erstwhile Centre was well equipped with latest
imported machines. The prime objective of the Centre was to provide young and
technically sound personnel to the footwear industry and to upgrade the knowledge and
skill of the existing staff.

Additions and necessary changes have been made in the infrastructure and management
of the Centre from time to time. But with the rapid growth of the footwear industry in the
country and with the introduction of modern machines in the industry, great need was felt
by the centre to modernize its infrastructure. To cater the requirements of the industry,
complete modern plant of the footwear manufacture was imported in the Year 1993, with
financial assistance from United Nations Industrial Development Organization under
National Leather Development Programme.

It was the 1st January, 1996, when the Central Footwear Training Centre, Agra, was
converted into an autonomous body and called Central Footwear Training Institute, A
Govt. of India society under the Chairmanship of Additional Secretary/Development
Commissioner (Small Scale Industry), Small Industries Development Organization,
Ministry of Industry, Government of India, with an objective of quicker implementation
of managerial decisions.

The campus of the Institute is on a 7500 sq. meter landscape spread on the western side
of the Agra-Delhi highway at Sikandra, 10 kms from Raja-Ki-Mandi railway station and
12 kms from Agra Cantt railway station. The Institute is well connected from the city and
is easily approachable by city bus service. In our campus we have separate sections for
separate operations like DESIGNING, CLICKING, CLOSING, LASTING, TESTING,
INTERNETLAB, CAD LAB, Etc. Other than this institute has recreation rooms and
canteen for the students to spend forget their hectic and tired day. This idyllic campus is
the fast track to developing into an ideal breeding ground for refreshing thoughts and
ideas

Designing Department
The first and most important section of footwear department, our designing section is
equipped with most experienced and technically qualified tutors. In each and every
class we provide the students with complete 4 hours of designing classes, Training
them in each and every models.

Starting from basic models like Derby, Oxford the students completes training
attaining the world class standard of deriving patterns from tough designs too. Few
difficult models students get trained are Moccasin, Stitchdown etc. Students also
trained for deriving patterns for different constructions like Sancrispino, strobel etc.
Continuous R&D from our experienced designing faculty results in crating new
trends in using new type of last and constant focus on fashion & designing. With a
seating capacity of more than 30 students the section is completely atmosphered for
practicing of designing. Constant support from the staff makes the students to
establish a good base for upcoming challenges.

With immense support from staff, students are encouraged to take part in designing
competitions held at various levels throughout India. Constant visit to the national
fairs and exhibitions, students posses a basic knowledge of upcoming trends &
fashion forecasts.
Including the designing Handgrading is the main thing which adds a technical base

for students. Experienced faculty teaches hand grading for students which makes
them a complete designer product for all types of industries.

Clicking Department

The first section in production department our clicking section is equipped for cutting the
material in latest machinery technology as well as traditional handmade technology. The
section headed by experienced faculties makes the right start for production. Machinery
includes Swing arm, Beam press, stamping etc…completes saturates the technical side of
The second section in production department is our closing section which is

equipped for closing of the upper components which are clicked in clicking
section. With latest machinery from Italy & other renowed stitching machine
manufactures. This sections gives the perfect finishing of upper with an ease.
Machinery like PAFF, TOYO etc. makers students trained on a world class machines
and give a good upper product.

Other machinery to name are folding machine, strobe machine, post bed machines,
flat bed machines, zig-zag machines. Which are installed in good number to train
students individually. The experienced faculty helps students to attain good
stitching work.
Right from folding to the stuching like, stobel, moccasin and decorative stitches are
handled by students under supervision of experienced staff.

the section
The World's largest Leather Research Institute, was founded on 24 April, 1948. CLRI
made an initiative with foresight to link technology system with both academy and
industry.

leading in science and technology relating to leather.
State-of-art facilities in CLRI support, innovation in leather processing, creative

designing of leather products viz. leather garment, leather goods, footwear and
development of novel environmental technologies for leather sector.
Leather Processing
Leather Process Technology Area, also known as Tannery division is an important core
area in CLRI. This division has been playing a key role in the growth of the tanning
industry in India. It played an important role by providing trained manpower and
appropriate technologies for the production of varieties of finished leathers in the
seventies when the Govt of India banned the export of raw and semi processed leathers.
The division again played a lead role in late nineties by providing unit specific cleaner
processing options for reducing pollution loads in tannery effluents when the Apex
Court of the country closed down more than 300 tanneries in the state of Tamil Nadu.
The area has been instrumental in the development of chrome management options for
in-process control
of pollution in leather processing and also playing a pivotal role in the transformation of
leather making from chemical intensive processing to bioprocessing. Through the efforts
of the division, CLRI is recognized as a centre of excellence for cleaner leather
production in the world today.
The main activities of the division are
 In-house R&D for meeting the near and long term needs of the leather industry
 Participation in Network Projects
 Consultancy and sponsored projects to tanneries and Leather Chemical companies
 Preparation of DPRs for establishment of Tanneries
 Education and Training activities in leather processing
 Finished leather certification and issue of technical opinions on leather
 Providing policy inputs to Govt on preparation of SION norms and revision of
norms for finished leather certification
Services from Shoe Design and Development Centre (SDDC)
Shoe Design and Development Centre(SDDC) undertakes wide range of consultancy

services with an emphasis on creative designs and pattern, increasing comfort and
productivity, and saving material consumption. This Centre has a well equipped CAD
facilities, fashion studio, footwear pilot plant and Shoe Clinic and Testing Labortory. The
Centre helps the industrial units to establish a testing laboratory. The package includes

plan layout, training of personnel/lab technicians, identification of equipment,
international standards/norms for testing methods, calibration services and periodic audit.
The fee for this package is Rs.1,75,000/- per unit.
SDDC has launched in January 1994, a Shoe Designer's Club with annual Membership
fee of Rs.10,000/-, as a window of International Fashion. This facility enables footwear
and footwear component manufacturers to gain access to the vast international
information based on shoe and leather fashions, design and development, colours,
materials, etc.
SDDC has now entered a new era by establishing an international class testing laboratory
for leather, footwear and its components. Under the aegis of the National leather
Development Programme (NLDP) of the Government of India and UNDP, the CLRI has
entered into a long-term collaborative agreement with SATRA Footwear Technology
Centre, UK, an internationally acknowledged testing center for footwear and allied
products.
A Key Facility to achieve Global Quality
The Laboratory follows a Quality Assurance Scheme as laid down by ISO/IEC guide
25:1990 (E) and strictly enforces all the conditions that are highlighted in the OECD code
of good laboratory practices. This greatly facilitates the companies opting for ISO 9000
to obtain the back up services of an international class accredited laboratory.
Services
A comprehensive range of services are offered by the testing centre
 Physical Testing
 Calibration
 Technical Advice
 Research
 Quality Certification and Standardisation
 Staff Training in Laboratory Techniques
 Assisting in IPQC and ISO 9000 Implementation
Other than Indian & SATRA test methods, testing services are also offered as per ASTM,
BS, DIN and CEN and Institutional standards like Bally and ECCO.
Why Testing at CLRI ?
 The premier footwear testing laboratory in India that offers testing and calibration
services as per Quality Assurance Scheme.
 Tests conducted by SATRA trained highly skilled technicians
 All equipment/instruments are well maintained and periodically calibrated for
correct performance of the tests and measurements

 Environment of the laboratory is strictly controlled as per International
requirements
 Efficient interpretation of the test results
 Prompt and dependable service
 Confidentiality of the test results are maintained
 Test reports sent by FAX/Courier
 20-30% discount on testing charges for SATRA members in India
 Report for common tests delivered within one day after conditioning period
 The laboratory is accredited by SATRA
 As per international norms, samples must be conditioned for 48 hours at Standard
temperature and humidity
Footwear Design and Development Institute
Footwear Design and Development Institute commonly known, as “FDDI” is the leading
Institute in India for Infrastructure Development for the footwear industry and Human
Resource Development. FDDI is a society registered under the societies Act, 1860,
sponsored by the Ministry of Commerce, Govt. of India.
FDDI is rated among the premier fashion and retail institutions in the world. It is widely
recognized as a centre of excellence. The institute conducts wide range of long term and
short term programmes in the area of Retail Management, Fashion, Footwear Design,
Technology, Management, Fashion Merchandising, Marketing, Creative Designing &
CAD/CAM, Leather Goods & Accessories Design etc. The long-term programmes are of
two to three years duration while short-term programmes are of one-year duration. All
programmes offered by the institute meets the international standards.

FDDI was set up by the Ministry of Commerce, Government of India with an objective to
train the professional manpower for the industry. In just a span of two decades FDDI has
evolved from being India's premier institute to a notable international training Institute.
FDDI is among the first institute in the world to get prestigious ISO 9001 and ISO 14001
certification.
FDDI has a distinct presence not only in higher education but also in the spheres in
Industrial Consultancy, Research and Development and Training of active industry
professionals. The syllabi, training software and teaching materials of FDDI are prepared
by the experts from Melbourne College of Textile, Australia & Southfield College, UK
and syllabus for management programme is designed by senior professors of IIM,
Ahmedabad and FMS, New Delhi. Our versatility consists in regularly upgrading our
syllabus and training programmes to meet the latest requirement of the industry.
FDDI has sprawling modern structure with excellent facilities, highly qualified and
trained staff, visiting faculty including top professionals from industry and every other
resource required for making the institute number one in the world.
The Institute has an impeccable track record of 100% placement for all its pass outs in
major Multinational and Indian companies. FDDI alumni include VP's and CEO's of
some of the renowned companies. FDDI students have been able to get global placement
in countries like USA, UK, Germany, Hong Kong, Egypt, China, Singapore, UK, Middle
East, Sri Lanka, Kenya etc.
To facilitate the working professionals of the Industry & to extend the benefit of formal
training programmes to far off places, FDDI has tied up with IGNOU for offering
professional programmes through Distance learning mode
The curriculars and Programs

The core elements of FDDI's teaching methodology are demonstration, practice and
theory. The emphasis is on practical as well as theoretical learning. The programmes are
designed so, that every student gets full attention throughout its progress. The subject
matter has been drawn up to provide maximum practical inputs to the students. Our effort
is to provide the best skilled professionals to the industry.
The entire training program has been developed for the different sections / level after
very minuscule study of each operation/activity normally known as modules. Originally
Melbourne College of Australia has prepared the syllabuses for our various programmes
in 1992. After that it has been revised in the year 1996, 2000 and then in 2006 to bring
the new changes in the technological area.
FDDI keeps itself abreast of the latest development in the field of Design, Fashion,
Technology, Retail and allied branches to update it's course curriculum.

"..Our Mission as an Institution is to provide world class footwear education, foster
research and development, evolve innovative application and encourage technology,
entrepreneurship and ultimately mould young men and women capable of assuming
leadership of the society for the betterment of the country."
The Management and faculty
The Governing Council of FDDI is a judicious blend of representatives from the

Government, prestigious educational Institutions such as National Institute of Fashion
Technology (NIFT) - Delhi, National Institute of Design (NID)-Ahmadabad, Central

Leather Research Institute (CLRI)-Chennai as well as the top representatives of the
Industry from all over the country. The management of the institute is consortium of
renowned & result oriented professionals.
The faculty consists of foreign and Indian experts in the field of Fashion design,
Technology, Management & Retail. Our faculty members acquired training from some of
the leading Institutions in India & abroad. Moreover, they have hands on experience on
consultancy assignments to the industries across India and countries in the Indian Sub-
continent and South-East Asia to assist the footwear industry for boosting the
productivity, product development and solving their problems.

The visiting faculty consists of top professionals in the industry as well as from the field
of Fashion, Designing, Management, Visual merchandising and Retail.
In all cases, our methods of instruction provide an interactive learning system. We

have partnered with several learning institutions whose knowledge exchange
curriculum building tools have helped us keeping the institute at par with the
international standards and quality.
The Campus
The institute has six well designed campuses at Noida, Fusatganj, Chennai, Kolkata,
Rohtak & Chindwara with lots of open space and greenery around. This provides a right
balance between concrete structure and natural ambience, in line with our mandate of
holistic development. An atmosphere of community living prevails in FDDI campuses.
The fervor with which every festival and social event is celebrated is a reflection of the
close bonding in the FDDI community. Fashion Shows organized by FDDI are very
popular. The sports and cultural activities in all the campuses ensure the overall grooming

of the students. FDDI campuses are equipped with Wi-Fi Internet connectivity.
NOIDA
The institute is located at Noida, one of the fastest growing cities and hub of information
and fashion technology. The campus spread over 09 acres has white dome structure with
a lush green cover. Powerful beams of light and strong shadows create a dramatic and
serene ambience that has inspired generations of students to achieve excellence while
retaining humility.
Besides workshops equipped with state of art machineries and equipments, Classrooms,
Hostel, Internationals Design Studio, Library, Computer Centre, Internationals Testing
Centre the institute also having International Museum (a unique centre), Common
Facility Centre (to help the industry) and Display centre (which is showcase for
international buyers).
FURSATGANJ
FDDI, Fursatganj Campus is located next to Indira Gandhi Udaan Academy, Fursatganj,
Rae Bareilly, U.P., 90 minutes drive from Lucknow. The campus area spread over 10
acres, is situated in a calm and serene surrounding with the state-of-the art Campus
housing & buildings having a built-up area of approximately 3 lacs sq. ft. Besides ample
air-conditioned classrooms, technical workshops equipped with modern state-of-art
machineries, it has conference halls, seminar halls, auditorium, open-air theatre,
computer labs, and the library along with fully furnished separate Girls & Boys Hostel,
which makes FDDI Fursatganj campus a most modern and world level.
FDDI, Fursatganj campus is located near to world famous Kanpur & Unnao clusters of
leather products and footwear. The retail sector is also growing very fast in the region of
Lucknow and Kanpur with its modern infrastructure and facilities complied with FDDI’s
international brand and quality, this campus will attract best students, faculty and industry
(Recruiters).
CHENNAI
FDDI, Chennai Campus is located at Irungattukottai near SIPCOT Footwear Park, 40
minutes drive from Chennai. The campus area spread over 15 acres is situated in a calm
and serene surrounding with the state-of-the art Campus housing & buildings having a
built-up area of more than 4 lacs sq. ft. Campus has an excellent infrastructure and
modern facilities, which assists in conducting the various academic programmes. The
Institute has a state-of-the-art library, computer lab, well furnished and centrally air-
conditioned building, class rooms and lecture halls, latest multi-media audio-video,
educational support for teaching and a fully equipped auditorium. The Campus is
equipped with International Testing Laboratory.
Chennai is the biggest hub of the world leather industry. Every exporter had an office in
Chennai & most of the leather & footwear industry is located in and around Chennai.
Tamil Nadu accounts for 30 per cent of leather exports and about 70 per cent of leather
production in the country. The large scale presence of the Tanning industry has resulted
in Tamil Nadu becoming a dominant production centre in the country for leather and
leather based products. In Tamil Nadu 0.5 Million people are employed in the industries
dealing with leather and leather based products. With the expansion and huge investment

coming up in this from the national and international reputed brands the employment
opportunities in this sector is going to increase many fold. It is estimated that leather
industry will require at least one million additional manpower in the next five years. The
skill gaps at the level of designers, technologists and management professionals are more
stark and demanding. It is where the prospective professionals can take advantage of the
courses being offered by FDDI Chennai and opt for lucrative and promising career

KOLKATA

Keeping into account the dire need of trained professionals and other technical services
for the overall growth of leather & leather product industry in India, a Centre of FDDI
has been established at Calcutta Leather Complex, Kolkata in an area of 15 acres.

Kolkata, the capital of West Bengal and the main commercial and financial centre in
eastern and north-eastern India is one of the oldest leather producing centers in India and
establishment of FDDI Centre will help the leather industry to grow.

With the establishment of FDDI, the leather & leather product industry will get a fillip
through trained manpower being provided by the institute as materials, components and
accessories that go into the production of leather products are available in Kolkata
besides facilities to source them locally or internationally.

Kolkata being the centre of leather goods and accessories, it has been planned to focus on
the design of leather goods and accessories intensively in this campus along with the
footwear technology, design, retail and merchandizing programmes.

ROHTAK

The FDDI Rohtak campus is located at Plot No. 1, Sector 31-B, IMT, Rohtak, Haryana.
The campus area spread over 15 acres of land is planned to intensively focus on Design
and Fashion related requirements.

Haryana has great potential in leather and footwear clusters. The present clusters of
Haryana like Bahadurgarh, Faridabad, Karnal and Ambala etc are expanding fast and
have promising future. This institute will work as a catalyst in their growth process.

The institute being established will be equipped with most modern and high-end state of
art infrastructure to ensure world class training environment and prepare the students
excel efficiently across the globe & provide gainful employment to the youth of the
region.

FDDI Rohtak centre will provide critical support to the industry in the area of Design,
Fashion & Trend forecasting, Technology and Management so that the Indian industries
can become more competitive, in terms of Design, Cost, Quality and delivery time, in the
global market.


FDDI is collaborating with leading design & fashion Institutes in the world for offering
World Class Design oriented programmes at Rohtak centre. The talks are going on with
AR Sutoria- Milan, Italy, Mode Pelle- Milan, Italy & Fashion Institute of Technology-
New York, America.

CHHINDWARA

The FDDI Chhindwada Campus is located in 20 acres of land at Imlikhera in
Chhindwara, Madhya Pradesh on Chhindwara-Nagpur Road. The institute will conduct
Operators and Supervisory level programmes of Short- Term and Long-Term
professional programmes.

FDDI Chhindwada Campus would meet the demand of leather products industry for
skilled manpower in the longer run. It will also provide gainful employment to the youth
of the region. The institute will also assist those who want to set up their own industry
and will help the organization to grow the business.
The product development program

The Product Development Center (PDC) creates a design data bank based on the latest
fashion information, lasts, soles and leather. These designs are kept for display at FDDI
premises so that the footwear industry can avail the latest fashion information. To make
this facility more effective, FDDI’s PDC uses its most sophisticated software systems,
such as,

 2D & 3D CAD Systems
 CAM Systems, NC Machining
 Surface Modelling Systems, to provide end-to-end solutions

PDC develops the designs for the industry as per their specific requirement keeping in
mind the targeted market segment. The services of our PDC are not only availed by
Indian industries that includes, major export houses but from various companies overseas
from U.K., Sri Lanka, Pakistan, Nepal, South Africa, Bangladesh, etc.

Facilities
 Shoe designing and pattern cutting

 CAD/CAM
 Sample development
 Prototype development
 Last modeling
 Sole designing and mould making

CHAPTER-5
Technical knowledge used in footwear industry
Computer allied design or computer allied manufacturing are the technologies which are
used in footwear industry.
CAD/CAM
CAD/CAM in the footwear industry is the use of computers and graphics software for

designing and grading of shoe upper patterns and, for manufacturing of cutting dies,
shoe lasts and sole moulds.CAD/CAM software is a PC-based system, which is made up
of program modules. Today, there are 2D and 3D versions of CAD/CAM systems in
the shoe industry.
Computer aided design was introduced in the shoe industry in 1970s. Initially it was used
primarily for pattern grading. It enabled manufacturers to perform complex grading
relatively easily and quickly. CAD systems today have been developed with a much
wider range of functions. Logos, textures and other decorations can be incorporated into
product designs of both the uppers and soles to help reinforce branding on all areas of the
model. It automates routine procedures, increasing speed and consistency whilst reducing
the possibility of mistakes. CAD data can now be used effectively for a wide variety of
activities across footwear manufacturing business. CAD/CAM generates data at the
design stage, which can be used right through the planning and manufacturing stages.
Latest improvements in the CAD/CAM technology are:
 Graphic capabilities and interconnectivity have improved enormously,

 Software developments have progressively made systems more intuitive and
easier to use,
 With 2D sketch and paint modules, a serviceable sketch can be produced and then
color and texture can be added.
 3D systems enable the last and design to be viewed from any perspective and
several angles even simultaneously.
With CAD/CAM software, footwear manufacturers can cut their time to market
dramatically and so increase market share and profitability. In addition, the power and

flexibility of the software can overcome restrictions to the designer’s creativity imposed
by traditional methods.
CAD/CAM in the footwear industry is the use of computers and graphics software for
designing and grading of shoe upper patterns and, for manufacturing of cutting dies, shoe
lasts and sole moulds. CAD/CAM software is a PC-based system, which is made up of
program modules. Today, there are 2D and 3D versions of CAD/CAM systems in the
shoe industry.
Computer aided design was introduced in the shoe industry in 1970s. Initially it was used
primarily for pattern grading. It enabled manufacturers to perform complex grading
relatively easily and quickly. CAD systems today have been developed with a much
wider range of functions. Logos, textures and other decorations can be incorporated into
product designs of both the uppers and soles to help reinforce branding on all areas of the
model. It automates routine procedures, increasing speed and consistency whilst reducing
the possibility of mistakes. CAD data can now be used effectively for a wide variety of
activities across footwear manufacturing business. CAD/CAM generates data at the
design stage, which can be used right through the planning and manufacturing stages.
Latest improvements in the CAD/CAM technology are:
Graphic capabilities and interconnectivity have improved enormously,
Software developments have progressively made systems more intuitive and easier to
use,
With 2D sketch and paint modules, a serviceable sketch can be produced and then color
and texture can be added.
3D systems enable the last and design to be viewed from any perspective and several
angles even simultaneously.
With CAD/CAM software, footwear manufacturers can cut their time to market
dramatically and so increase market share and profitability. In addition, the power and
flexibility of the software can overcome restrictions to the designer’s creativity imposed
by traditional methods.
Contents
Shoe upper pattern design
CAD in 2D is realized by digitization of the model basic lines with the help of digitizer
tablet cursor or mouse. The designer creates then individual upper patterns interactively

on screen using a number of special functions for effective work at all stages. Patterns
can be also edited and combined with already designed parts. Zooming, measurement of
distances, lengths and areas etc. can be done very accurate and easily.
To design in 3D, the shoe last geometry data has to be input first by a special scanning
device. The upper pattern can then be sketched on the image of the last on monitor. The
software module flattens the 3D parts in 2D for further use.
The patterns, a complete documentation for shoe design and models for cutting die
production, can be cut on cardboard directly with a table cutter connected to the CAD
workstation.
Most systems can import and export various graphics data formats enabling further data
processing by other CAD systems or database programs.
Pattern grading
Shoe upper patterns need to be graded for the whole scale of the assortment of the
required shoe sizes, which can be French, English or American sizing. Individual parts
are graded instantaneously, which enables the designer to check the graded parts on the
monitor. If any discrepancies are found, the designer can change the grading
specifications immediately and re-grade the parts in no time..
Die making
Cutting dies made of steel are used in the shoe production to cut uppers from leather,
textile or synthetics. Some CAD systems offer modules, which enable long-distance
transfer of data for shoe production preparation via modem or the Internet. The graphics
data of patterns designed can then be transmitted easily to the die producer. The system
calculates also the circumference of the die, which is the key factor of the die cost.
Automated leather cutting
Automated cutting machines are widely used today in the footwear industry to cut uppers
from leather, when die costs are relatively high for samples or low quantity styles.
Computerized cutting systems use graphics data output of CAD systems as input.
Cost calculation
Using the graphics data generated ÁandĤ materials database stored, the CAD software
can perform instant and highly accurate calculations for material consumption and
product cost of the shoe, eliminating grueling and time-consuming work. It helps also
introduction of detailed documentation and supports effective staff training.

Shoe last design
Lasts can now be produced on a selection of numerically controlled lathes and milling
machines using data output from footwear manufacturers' CAD systems. Last shapes can
be modified and new lasts created in the CAD systems and the machining controlled with
their data. Variations in toe shape, heel curve and toe spring are easily achievable.
Combining parts of different lasts also takes a few minutes with CAD technology. It is
possible to develop shoe design and tooling before the last physically exists because they
are all derived from the same source data in the CAD system.
Easy modification of last shapes through CAD has enabled the development of software
and procedures for orthopedic and customized footwear. Modules for materials and labor
costing, lay planning and style specification sheets can be used early in the development
of shoe styles.
Complex shapes can be generated, both speedily and accurately, from the 3D computer
representation of the appropriate last.
Sole design
CAD/CAM software can be used to generate machining data for shoe sole models and
moulds Shoe sole mould makers are able to strengthen their capabilities of mould design
and production techniques to meet the market demands for shorter product life cycle,
quality improvement and handling versatile pattern design. This helps especially sports
shoe producers to manufacture products rapidly and to introduce them earlier than their
competitors.
3D CAD/CAM is the core technology for shoe sole mould in the footwear industry and
develops towards specialization.
Benefits of CAD/CAM in the mould manufacturing are:
-Total modeling for rapid generation of design concepts and variations,
-Reverse engineering from existing models or parts,
-Easy design modification and morphing capability,
-Completely accurate designs regardless of complexity,
-Group grading of soles and uppers,
-Advanced decorating techniques,
-Realistic onscreen visualization,

-Rapid generation of molds from product designs
CHAPTER-6
Prominent players in footwear industry
There are too many players in footwear industry.Some of the players are very
famous.Those players are-
MIRZA INTERNATIONAL LIMITED
We would like to introduce ourselves as Mirza International Limited is a front runner in

the manufacturing and marketing of leather and leather footwear. Headquartered in the
Indian capital of New Delhi, the company markets its products across the globe to
countries like the UK, Europe, South Africa and the Middle East, to name a few. The
company is ISO 9001, 9002 and 14000 certified, and has a fully integrated in-house shoe
production facility backed by a state-of-the-art double density direct injection
polyurethane plant, a tannery with its own pollution treatment plant, and a dedicated
design studio in London.The manufacturing plants are located at Magarwara and Sahjani
in Unnao, and in Noida. The tannery is located at Magarwara in Unnao. These plants are
backed by more than 25 dedicated ancillary units.
Known for its unparalleled comfort, international styles and finesse, Red Tape the
flagship brand of Mirza International Limited, was launched in the year 1996. The brand
has today become synonymous with hi-fashion & lifestyle, owing to its unmatched
quality, skilled craftsmanship and trendy products. Endorsed by the style icon Salman
Khan, Red Tape has become Indias most loved premium lifestyle brand.
At, Mirza International Limited, delivering quality is of paramount importance across

processes. We consistently aim to deliver world-class quality to our clients and end
users.
Our dedication to quality is indicated by the following:
All our units have in house laboratories for testing of raw materials and finished products
Regular Inspection of intermediate products is carried out at various ancillary units to
maintain quality of end product
Batch wise quality inspection of finished products is undertaken
Mirza International Limited focus on design is a key differentiator for its shoes. The
company invests considerable resources on research and development on an ongoing
basis, in order to introduce new designs, styles and product lines into the market.
Fact Sheet
Year of Establishment : 1979
Legal Status of Firm : Limited Liability/Corporation (Listed Company)

Nature of Business : Manufacturer, Wholeseller
Number of Employees : more than 1000 People
Turnover : US$ 25-100 Million (or Rs. 100-400 Crore Approx.)
Major Markets : Australia/NZ, Indian Subcontinent, Caribbean, East/Middle
Africa, North Africa, South/West Africa, East Europe, East
Asia, Central America, North Europe, Middle East, South
America, South East Asia and North America
Trade Membership : CLI, CLE.
Quality
We are an ISO 9001,9002,14000 certified company Satra guidelines are followed for
quality check of shoes.
Infrastructure
About 40 skilled designers and experts from across the globe engaged 5% of its turnover
earmarked for R&D USD 2.22 million allocated for further up gradation of design centers
and laboratories over the next five years CAD-CAM link to UK center ensures the fast
development & lead time management. Achievements Set up a fully integrated
production line Own tannery for captive consumption in shoe factories with a capacity of
20 million sq ft p.a. Increased production capacity to 3.35 million pairs p.a. Developed
over 25 dedicated ancillaries Developed 2 fully dedicated outsourcing units for mass
products, supplying 1.2 million pairs of shoes p.a. All factories, Indian Offices and UK
office connected through ERP network for a seamless information system Created a
strong design team based in London Enabled global presence through group companies
and marketing arrangements.
Promoter
Mirza Tanners(MTL), promoted by Irshad Mirza and Rashid Mirza in 1979 is into
manufacture of finished leather, shoe uppers, shoes and leather accessories. The company
tapped the capital market in Sep 1994. The company to set up a factory to manufacture 6
lac pairs of shoe uppers and 4.5 lac pairs of shoes pa at Shahjani-Unnao, UP, to increase
the capacity of the tannery units from 50 lac sq ft to 60 lac sq ft of finished leather pa at
Magarwara-Unnao, UP. MTL has established itself as a high-quality shoes supplier
catering to the premium segment of the market. It has supplied shoes to the Hush Puppies
division of British Shoe Corporation and to reputed brand names -- Oliver Timpson of the
Oliver group, UK; Saxone of Clarks shoes, Australia; etc. In the past it has received two
export awards of council for leather export for its outstanding performance and unit value
realisation among leather footwear exporters. In 1996-97, it allotted bonus shares in the
proportion of 1:1 by capitalisation of share premium account. About 85% of the shoes
manufactured by the company are exported. It has commenced sale of footwear under its

own brands Red Tape and Oakridge and these have received encouraging response.
Having established a national presence in the country, Red Tape, the flagship brand of
Mirza Tanners Ltd, is on an aggressive expansion drive adding new styles and exploring
new markets in 2001. The Company bagged three export awards from the Council for
Leather Exports for outstanding export performance for the year 1999-2000. After the
successful launching of Double Density PU shoes, the company added a second plant at
its Noida Factory doubling the capacity. The Company is expecting a substantial increase
in this new range of footwear. During 2001-02 the company issued on private placement
basis,Secured Redeemable NCD with a face value of Rs.5 crores. MTL is contemplating
of restructuring of Group operations and has appointed Price Waterhouse Coopers (P) Ltd
to examine various options.
Key Executives
Irshad Mirza , Chairman
Rashid Ahmed Mirza , Managing Director
Tauseef Ahmad Mirza , Whole-time Director
Yashveer Singh , Director
Brands of Mirza international limited

1.Redtape
Known for its unparalleled comfort, international styles and finesse, Red Tape the
flagship brand of Mirza International Limited, was launched in the year 1996. The brand
has today become synonymous with hi-fashion & lifestyle, owing to its unmatched
quality, skilled craftsmanship and trendy products. Endorsed by the style icon Salman
Khan, Red Tape has become India’s most loved premium lifestyle brand.
Red Tape - Fashion for Your Feet

Red Tape has emerged as a leader in the high-end fashion footwear segment. The Red
Tape footwear range is designed in company-owned design studios in the UK and Italy
and manufactured using international quality materials from European countries. Having
become India’s favourite men’s footwear, the brand has now diversified into Women’s
footwear.
Red Tape- Fashion for You

Red Tape has recently forayed into the apparel sector and unveiled men’s clothing and
accessories line up. This new range offers an eclectic mix of casual wear including shirts,
jackets, denims, tees, pants/shorts and accessories such as belts, socks and wallets.
Red Tape- Fashion for the World

Red Tape is an international brand, present across the US, UK, France, Germany, West
Asia and South Africa. The Red Tape products are being sold globally through the

company's extensive global distribution channel.
Red Tape – Fashion that is Truly Global

The Red Tape range of shoes, apparel & accessories reflect the latest fashion tends across
the globe. These are designed in company-owned design studios in the UK and Italy and
manufactured using international quality materials from European countries , in order to
produce a truly global product.
Red Tape – Fashion in Your Reach

Red Tape products are available across India through multiple brand outlets, chain stores
and exclusive Red Tape showrooms. Its countrywide network of exclusive showrooms
spans 30 cities in India
2.Oaktrak
Oaktrak is a niche brand of formal footwear, designed exclusively for the upwardly
mobile executives and businessmen. The range is both casual and urban, with the
emphasis on comfort with style. Oaktrak is sold through independents, small retailers and
multiples. Primary markets for the brand are UK and South Africa
Exports
Mirza International Limited is an export oriented company with a major chunk of its sales
being contributed by overseas sales to 24 countries. The main export markets for the
company are UK, Europe, South Africa, US Canada, New Zealand and the Middle East.

Export Highlights
80% of company’s sales being contributed by overseas sales to 24 countries.
15% of the company’s total export is sold under the brands Red Tape and Oak Trak
in Europe.
The balance 85% is supplied to international companies, to be sold under their own
labels.
70% of the exports are to UK, representing about 30% of Britain’s market in the
mid-segment of men’s leather shoes, sold through 300 prime outlets.
Company Owned design studio, marketing offices, warehouses and distribution
network in United Kingdom to design and promote its brands.
Strategic marketing tie-ups and agents in other European countries like Holland,
France, Germany.
Agents in Middle East and Australia.
Marketing arrangement in South Africa similar to that of UK.
Marketing office set up in the US.
SUPER HOUSE GROUP

Superhouse Group , is a multi- unit and multi- product conglomerate with brand
leadership in the field of footwear manufacturing and exports. 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 US $75 million group, Superhouse Group has 15 units, with a workforce of
over 5000 and a presence in more than 35 countries. Our commitment to quality is
reaffirmed by our ISO 9002 certification. Stringent EN 345-norms make us one of the
most respected manufacturers amongst importers from European countries. Being
equipped with requisite infrastructure and strict adherence to high standards of quality,
we are able meet CSA, ANZ & and SABS standards.A perfect blend of highly technical,
skilled and semi-skilled workforce and competent managers has helped us in carving out
an enviable position for ourselves in the global market.
Nine state-of-the-art units involved in manufacturing footwear and Shoe accessories, are
ably backed by our marketing offices strategically located in the USA, the UK, the UAE
and Romania.
Our four modern tanneries provide us with the finest quality leather for our footwear
production. To meet the exacting demand of clients we also import leather from Brazil,
Italy and Columbia.
The Group has two leather goods manufacturing units including leather garments units.

The Group is also engaged in the manufacturing and export of Readymade Garments and
Riding Products.
In addition, we are approved vendors for global brands such as Wal-Mart, Filanto,
Auchan, Andre, Shoe Fayre, Hudson Bay, Heckel Securite, Secura and many more.
Our existence in the trade for over three decades has given us a wealth of knowledge,
which allows us to offer our customers the maximum in choice, value and quality.
VISION AND MISSION
The last three decades have been dedicated to building strong foundations for Superhouse
brick by brick: from infrastructure to technology, from solid relationships with employees
to market acceptance.
We are now poised to take the next giant leap – to establish ourselves as the undisputed
leader in leather products be it footwear or finished leather or leather accessories.
Retaining our leadership through growth as a consequence of customer satisfaction is of

paramount important to us.
To achieve our vision, the framework for quality inputs and , processes is in place, and is
constantly monitored and upgraded.
Superhouse Group aims to constantly improve the quality of its products by fulfilling its
customers’ expectations.
HISTORY
Superhouse Group is a conglomeration of several companies engaged in manufacturing

and export of finished leather, leather products and textile garments. The parent
company, Aminsons Leather Finishers Pvt., was incorporated as private limited company
on January 14, 1980. It was converted into a public limited company on December 22,
1984 and its name changed to Aminsons Limited on February 21,1989. In addition, five
group companies - Super House Limited, Super Garments Limited, Sharp Leathers
Limited, Super Footwear Limited and Allen Shoes Limited - were merged with
Aminsons Limited in 1994, 1995 and 1996 as per the orders of the Hon’ble High Court of
Judicature, Allahabad. The name of the company was changed to Superhouse Leathers
Limited on March 4,1996 and finally Superhouse Limited on November10, 2006 with the
approval of the Registrar of Companies, Kanpur (U.P.).
From a single tannery in the 1980’s producing finished leather, Superhouse Group has
emerged as one of the largest players in the industry. We started with a commitment to
excel, achieve and deliver the very best. Towards this end, we engineer, optimize and
control every phase of the manufacturing process from raw material to finished products

to ensure that end products are of the highest quality and also the best value for money
for our clients.The Group have four overseas companies in the UK, the U.S.A., the
U.A.E. and Romania, primarily engaged in marketing and distribution of leather, leather
products and textile garments.
The group has crossed an annual turnover of Rs. 4,000 million.
The Group has 15 manufacturing units located in Kanpur, Unnao, Agra and Noida
SOCIAL RESPONSIBILITIES
The Group promoted a Common Effluent

Treatment Plant in the state of Uttar Pradesh in
1993 for the treatment of effluent generated by
leather industries at the secondary stage with
the assistance of the World Bank and the
government of Uttar Pradesh.
All four Group tanneries have primary Effluent

Treatment Plants.
Common Effluent Treatment Plant
An Environmental Management System has
been implemented at the tanneries and shoe
units. The units has been certified as ISO
14001:2004.
The Group is implementing the Social Audit in every manufacturing unit and the leather
garments unit of the Group has already received the SA8000 Certification. Continuous
efforts are made to create awareness about environmental conservation among inabiants
of towns/cities where our units are located.
The Group is committed to the Health and Safety of its workforce. The tanneries and
shoe units have been awarded with the certificate of OHSAS 18001:1999 for
Occupational Health and Safety Management System Standard.
The Group has also entered the field of education and has tied up with a leading
Educational Society - Delhi Public School (DPS) - and has opened several branches:
 DPS Kalyanpur, Kanpur

 DPS Indiranagar, Lucknow
 DPS Eldeco, Rai Bareily Rd, Lucknow
 DPS Jankipuram, Lucknow
 DPS, Bareilly
 DPS, Saharanpur

All national events such as Republic Day and Independence Day and other days such as
May Day and, Vishwa Karma Day are celebrated at the units.
BRANDS
ALLEN COOPER
Until now, Allen Cooper had been enjoying the prestigious patronage of British and
European markets. The brand has now stepped into the Indian market and is catering to
the requirements of corporate and institutional customers, creating a niche image for its
fashion leather products adhering to the high standards that the British have set, Allen
Cooper’s range of products boasts of an array of international designs through its Italy,
UK, China and India based design studios.However, Allen Cooper has not rested on its
laurels. It is acquiring the best of Indian patterns and is continuously innovating products
with imagination and realism, leaving competition miles behind. Indian customers have
taken very well to Allen Cooper products and the demand is growing daily among quality
conscious customers demanding international class. The response has been overwhelming
and Allen Cooper will soon be spreading its wings across India to cater to customers’
wishes. .
AWARD AND RECOGNITIONS
2008- Commendable Export Performance 2008-09 Silver Trophy.

09 Presented by Council for Leather Exports.
2008- Best Export Performance 2008-09 Non-Leather Saddlery & Harness.

2008- Commendable Export Performance 2008-09 for Finished Leather

09 Presented by Council for Leather Exports
2008- Commendable Export Performance 2008-09 for Footwear Components

2008- Outstanding Award State Export Award 2008-09

09 Presented by Uttar Pradesh Government.

2007- Commendable Export Performance 2007-08 Silver Trophy.
2007- Best Export Performance 2007-08 Non-Leather Saddlery & Harness.

2007- Trading House Certificate.

08 Presented by Ministry of Commerce and Industry, Government of India.
2007- Outstanding Award State Export Award 2007-08

08 Presented by Uttar Pradesh Government
2007- First Prize State Export Award 2007-08

08 Presented by Uttar Pradesh Government
2006- Best Overall Export Performance 2006-07 Gold Trophy

2006- Best Export Performance 2006-07 Non- Leather Saddlery & Harness
2006- Certificate of Merit for Securing ISO 14001 Certification for Finished
07 Leather, Shoes & Accessories Units.
Presented by Council for Leather Exports.
2006- Certificate of Merit for Securing OHSAS 18001 Certification for Finished
07 Leather, Shoes
& Accessories Units.
2006- Twenty First Century Millennium Award for Outstanding Achievements in

07 Chosen Field of Activity.
Presented by International Institute of Education & Management.
Mr. Mukhtarul Amin, Chairman and Managing Director of Superhouse

unanimously elected as Chairman of Council for Leather Export.
2005- Best Overall Export Performance 2005-2006 Gold Trophy Presented by

06 Council
For Leather Exports.
2004- Utkrast Puraskaar State Export Award 2004-05

05 Presented by Niryaat Protsaahan Vibhag, Uttar Pradesh Govt.

2003- Best Overall Export Performance 2003-04 Gold Trophy Presented by
04 Council For Leather Exports.
2003- First Prize State Export Award 2003-04

04 Presented by Rajya Niryaat Protsaahan Vibhag, Uttar Pradesh Govt.
2002- Second Prize State Export Award 2002-03

03 Presented by Niryaat Protsaahan Vibhag, Uttar Pradesh Govt.
2001- Best Export Performance in Finished Leather.

1998- Commendable Export Performance during 1998-99 in Overall Exports.

Trophy for Best Performance among the Exporters Above US $ 5 Million

during 1998-99 in Footwear Components.
1997- Certificate of Merit for Commendable Performance during 1997-98.

1997- Certificate of Merit for Commendable Performance during 1997-98 in

98 Footwear Components.

1995- Second Prize State Export Award.

96 Presented by Uttar Pradesh Govt.


1991- Second Prize State Export Award.

92 Presented by Uttar Pradesh Sarkar.

1991- State Export Award 1990-1991.
Action Award 1991 Presented to Mr. Mukhtarul Amin for Excellent Person of
the year.
1988- First Prize state Export Award 1988-89


RAHMAN INDUSTRIES LIMITED
The Rahman group initiated as a leather tannery at Kanpur, India in 1981. Rahman-
Group is a family owned business controlled & run by the Rahman family.
The corporate activities are skillfully dedicated towards quality production of leathers for
footwear & upholstery, safety & casual footwear, equestrian and other leather products.
With 25 years of unrivalled performance, the Rahman group has emerged as an
innovative and reliable corporate structure.
The two Rahman brothers expertly manage the operations of the company, with Mr.
Nadeem Rahman spearheading all marketing and production activities and Mr. Kamran
Rahman instrumental in steering the group towards financial growth and stability.
MISSION:
Rahman Group shall operate, as a commercial enterprise with its hub in India and the
main mission of Rahman group is to manufacture and distribute quality leather and
leather products. The group shall conduct all its activities as per the highest quality
standards.
For Rahman group the customer constitutes the most important element in their business.
The group directs all it activities towards consumers satisfaction; the group aspires to be
perceived as a market leader in product innovation by offering the highest degree of
quality.
All products shall be suited to specific / varying market demands where Rahman group
aims to penetrate and maintain international quality standards and be duly certified by
recognized authorities.
All Rahman group products shall be easily accessible to the consumers through a wide
network of distribution channel.
Rahman group strives to develop and maintain a long term relationship with all its
consumers, corporate customers and business associates built on trust and respect by

operating as a legally and ethically managed business enterprise that continuously aims at
fulfilling all requirements of good business practice.
R & D AND PRODUCTION:
Rahman exports are an ISO certified company since the year 1997 presently having
9001:2000, products confirm to EN344 & 345 standards.
The imaginative team of designers at and in collaboration with Rahman Group
consistently strives to develop a range of footwear suitable for varying industries and
uses. The knowledge of consumer aspirations and preferences viable for designing
purpose is readily translated in quality products.
Rahman group is effectively able to meet the production and quality demands of all its
customers with the state-of-the-art Machinery And Equipment. The Production Facilities
Include Modern Tanneries For The In-house Production Of Quality Leather, Latest
Machineries For Manufacture Of Polyurethane Injection Molded Safety & Casual
Footwear, Vulcanizing Plant FOR DIRECT VULCANIZED RUBBER SOLE
FOOTWEAR And Equestrian Range Leather Products. The Production Process Is
Managed By A Group Of Engineers And Technical Professionals Who Are Specially
Trained For The Manufacture Of Leather & Leather Products. During And After
Production Stringent Quality Control Checks Are Incorporated To Ensure That All
Manufactured Products Strictly Adhere To International Quality Standards.
PRODUCTS
Finished Leathers:
 Leather for safety and casual footwear

 Water resistant leather
 Upholstery leather
 Harness & belting leather
Footwear:
 Direct injected, double density, polyurethane sole safety footwear

 Goodyear welted footwear
 Direct vulcanised rubber sole safety / army footwear
 Casual and stuck on footwear
 Sandal and slipper
OTHER Leather Products:

 Shoe / boot uppers.
 Equestrian products (harness & saddlery)
 Industrial leather gloves
SALES & DISTRIBUTION:
The increasing presence of Rahman Group can be attributed to extensive presence and

penetration in the market.
In addition to manufacturing the network of agents and distributors make Rahman

Group products readily available.
Customer Support:
Rahman Group believes in building and maintaining a relationship of trust with all its
customers. The customers support service is always available to assist the customers for
achieving the maximum customer satisfaction.
25 Years Of Unrivalled Performance Positively Poised For The New Millennium.
Standard and Compliance
 ISO Certificate
 Intertek
 Australian Standard
Rahman Industries Ltd. Leather Div.
Rahman Industries Ltd Safety / Army Shoe Div.

Honors and Awards

The Company has the distinguished Awards. All having been awarded scores of
Performance Awards, some of which are listed below:
Year Body Company Award for

2008- Council for Leather Rahman Industries Ltd. Certificate & Trophy for
2009 Export, Chennai Commendable export
( INDIA ) performance in the US$ 5
million to 15 million
catetory during 2008-09 for
LEATHER FOOTWEAR.
2003- Council for Leather Rahman Industries Ltd. Trophy
2004 Export, Chennai
( INDIA )
2003- Council for Leather Rahman Industries Ltd. Best Export Performance
2004 Export, Chennai Trophy in Footwear
( INDIA ) Component in category of
above US$ 5million
2002 Parpia International Allah-Dad Tannery Outstanding Supplier Award
Pte. Ltd., Singapore
2000- Council for Leather Rahman Industries Ltd. Best Export Performance in
2001 Export, Chennai Leather Footwear in category
( INDIA ) US$ 1million to 5million
1999- Council for Leather Rahman Industries Ltd. Certificate of Merit in
2000 Export, Chennai Footwear Component in
( INDIA ) category of above US$
5million
1999 Parpia International Allah-Dad Tannery Outstanding Supplier Award
Pte. Ltd., Singapore
1998- U. P. State Allah-Dad Tannery State Exporter Award
1999 Government, INDIA

Social Commitments
Besides business development, which is an on going, process group is doing social

welfare jobs on regular basis:
Rahman conducts its business with honesty, integrity and respect for all those who come
in contact with it in course of business. Fully appreciative of the fact that its reputation
stems from not just quality products and technological innovations but also from the
manner of its dealings with customers, suppliers and all those who are outside the
Rahman Group. Utmost importance is also given to ensuring a safe, healthy and non-
discriminatory work environment for all Rahman employees where they are free from
harassment of any form by supervisors, seniors, co-workers, customers and suppliers.
Ethical standards and practices are rigorously adhered to which is why Rahman finds
place in the market.
 Harvesting Plant for rainwater

 Effluent Treatment Plants in Tanneries
 Environment Conservation
RAHMAN has promoted the COMMON EFFLUENT TREATMENT PLANT in

Banthar of Uttar Pradesh, India in 1993 with the support of World Bank and the Govt. of
Uttar Pradesh.
Rahman Group Quality Definition

Better Quality Machines, Better technology, Better Qualified People, Better
Infrastructure, Better Quality of Raw Material. Increase our productivity & Quality
product provides customer satisfaction.
Rahman Group has a lot of firsts to its account
 IT is the 1st company in india to start to make safety footwear to en standards.
 IT is the 1st company in india to start to make dual density pu injected safety
footwear. this technology gives a light weight product with very high comfort and
shock absorption and many other properties like antistatic and oil resistance etc.
 IT is also one of the 1st company in india to start making upholstery leather from
buffalo hides.
GHARI INDUSTRIES PRIVATE LIMITED

Red Chief is the brand of Ghari Industries Pvt. Ltd. (Footwear & Leather division) - one
of the leading manufacturers of footwear in India. The Company is a part of Ghari
Industries Pvt Ltd group, having annual group turnover of around US $ 200 million. This
company is also manufacturing detergent under the brand name "Ghari" which is a well
established brand and trend setter in its respective
industry.
Footwear range of Ghari Industries Pvt Ltd was launched under the brand name Red
Chief in 1997 to meet the growing demand for branded high quality leather footwear at
an affordable price. Starting with a handful of employees in 1997, Red Chief now has a
workforce of more than 350 dedicated employees. The company has recorded an
impressive growth through its enthusiastic and highly motivated marketing team and an
efficient distribution network covering nearly the whole of north & west India. For future
growth the company is now all set to explore overseas market.
The driving force behind the company through the years has been its quest for quality and
excellence. To fulfil these objectives, Red Chief has gone for complete backward
integration. It has its own Tannery to supply a complete range of finished leather as well
as manufacturing facilities for making Sole and Shoe Upper ,thus ensuring superior
quality in every component of its products and becoming a complete Shoe Manufacturing
Company.
PRODUCTS
Article No. 1078 Article No. 1006
QUALITY POLICY
We trust in the ideology of "Value for Money". It has been our guiding principle to
deliver high quality shoes at affordable prices, which is unmatchable by any of our
competitors.
Each of our products incorporates the highest standards of quality achieved through
stringent quality control by adopting latest technologies, rigorous testing of raw
materials, continuous on-process monitoring , battery of post assembly checks and
commitment of our employees to achieve quality standards. Our products meet all
relevant international standards and regulations.
An urge to give even better product to the customer keeps us engaged with constant
quality up-gradation. Experimenting with new ideas in technology and design, an in-
house research and development cell equipped with the most advanced tools ensures a
constant flow of new ideas and breakthroughs.
PHILOSOPHY
Our company's corporate philosophy can be expressed in one sentiment "Customer

Delight"- by providing products of the highest quality within an economical and
affordable price range. Total consumer satisfaction is the most important component we
pack into all our products and absolute consumer confidence is our biggest reward.
Perfection is a never ending pursuit for us. With quality as the hallmark, it is our sincere
endeavor that each product that comes through our state-of-art production line should
truly act as the ambassador of goodwill, with the consumers-reinforcing their conviction
in Red Chief.
SOCIAL COMMITMENT
The company displays high level of social commitment by active participation in social
welfare activities. All packing material used for packing footwear and finished leather is
recyclable and environment friendly. The tannery at Ghari Industries Pvt Ltd has one of
the modern water treatment plants to treat effluent water and has high safety standards for
workers.
INFRASTRUTURE
With the most advanced manufacturing facilities spread over 6000 sq. mtrs, Red
Chief has been consistently meeting the requirement of its customers.
Red Chief has state - of - the art production facilities to manufacture 2000 pairs of shoes
per day. The complete vertically integrated infrastructure, all under one roof gives us the
huge edge. The complete in house manufacturing capabilities include upper stitching and
injection moulding machines. If required production capacity can be increased up to 3000
pairs a day.
The facilities are fully networked for the smooth flow in the assembly line. The emphasis

on quality is not compromised at any level and under any circumstances. To ensure this,
rigorous controls and checks have been implemented in every stage right from the
acquisition of raw material to the finished products. The company keeps abreast with the
latest shoe manufacturing technology. Many machines in the footwear and Leather
Division are imported from countries like Italy, Germany, Czech Republic and some
other European Countries.
AD CAMPAIGN
Since 1997 'Red Chief' has

come and long way and
has established itself as a
major brand in the Indian
footwear market
manufacturing designer
shoes, formal shoes, casual
shoes, boots, etc., with the
brand proposition
'naturally its leather'. A lot
of effort and hard work
has been put into the brand
since that time besides
consistency in the product
quality; high quality
advertisement has also
helped the brand
promotion.
The main media in use for advertisement of Red Chief are newspapers and
magazines. Besides this, intensive outdoor advertisements like billboards,
poster panels, side hoardings, vehicle wraps and also wallscapes are used as
a medium of advertisement.
All the outdoor venues for advertisement and

carefully picked to maximise the effect of the ad
on the potential customers. Besides this at Red
Chief we also give a lot of importance to in-store
advertising, the retailers are provided with a lot
of promotional advertisement stuff, like
hangings, posters, display racks, electric
boarding and also stationary with Red Chief
printed on it. Frequent television advertisements
also support the main media.

CHAPTER-7
Rules and regulations and initiatives taken by Indian government for
footwear industry
In the present time every country is trying to export more and more goods so they can
earn maximum foreign currency that’s why a competitive export environment created and
now the development of a country depends on this that how much a country export this
the reason that Indian government is also trying to boost up its export so they can also

deal with this export environment. To boost up its export Indian government is adopting
several so it can motivate the business house for export
The steps taken by the Indian government to push up the export are as follows
1. PROVISIONS REGARDING IMPORTS AND EXPORTS
A) Exports and Imports free unless regulated
Exports and Imports shall be free, except where regulated by FTP or any other law in
force. The item wise export and import policy shall be, as specified in Indian Trade
Classification (Harmonised System) Classification for Export & Import Items notified by,
as is Director General of Foreign Trade ended from time to time.
Import of rough diamond from Cote d’Ivoire shall be prohibited in compliance to

Paragraph 6 of UN Security Council Resolution (UNSCR) 1643(2005).
The import/export of rough diamond (HS Code 710210, 710221 or 710231) from / to
Venezuela shall be prohibited in view of voluntary separation of Venezuela from the
Kimberley Process Certification Scheme (KPCS). No Kimberley Process Certificate shall
be accepted / endorsed/ issued for import and export of rough diamonds from / to
Venezuela.
Import / export of arms and related material from / to Iraq shall be prohibited.
Direct or indirect export and import of following items, whether or not originating in
Democratic People’s Republic of Korea (DPRK), to / from, DPRK is
prohibited: All items, materials equipment, goods and technology including as set out in
lists in documents S/2006/ 814,S/2006/815 and S/2006/853(United Nations Security
Council Documents) which could contribute to DPRK’s nuclear-related, ballistic missile-
related or other weapons of mass destruction-related programmes.
Direct or indirect export and import of all items, materials, equipment, goods and
technology which could contribute to Iran’s enrichment-related, reprocessing or heavy

water related activities, or to development of nuclear weapon delivery systems, as
mentioned below, whether or not originating in Iran, to / from Iran is prohibited:
i. Items, listed in INFCIRC/254/Rev8/Part I in document S/2006/814, in Sections

B.2 to B.7 as well as A.I and B.I except supply, sale or transfer of equipment
covered by B.I when such equipment is for light water reactors and low-enriched
uranium covered by A.1.2 when it is incorporated in assembled nuclear fuel
elements for such reactors;
ii. Items listed in S/2006/815 except supply sale or transfer of items covered by
19.A.3 of Category II.
B) Compliance with Laws
Every exporter or importer shall comply with the provisions of FT (D&R) Act, the Rules
and Orders made there-under, FTP and terms and conditions of any Authorisation granted
to him. All imported goods shall also be subject to domestic Laws, Rules, Orders,
Regulations, technical specifications, environmental and safety norms as applicable to
domestically produced goods. No import or export of rough diamonds shall be permitted
unless accompanied by Kimberley Process (KP)
Certificate as specified by Gem & Jewellery Export Promotion Council (GJEPC).
C) Interpretation of Policy
If any question or doubt arises in respect of interpretation of any provision contained
in FTP, or classification of any item in ITC (HS) or HBP-v1 or HBP-v2, or Schedule of

Rates Duty Entitlement Passbook including content, scope or issue of an authorization
there under said question or doubt shall be referred to DGFT whose decision thereon
shall be final and binding.
D) Procedure

DGFT may, specify procedure to be followed for an exporter or importer or by any
licensing or any other competent authority for purpose of implementing provisions of FT
(D&R) Act, the Rules and the Orders made there under and FTP. Such procedures shall
be published by means of a Public Notice, and may, in like manner, be amended from
time to time.
E) Exemption from Policy / Procedure
DGFT may pass such orders or grant such relaxation or relief, as he may deem fit and
proper, on grounds of genuine hardship and adverse impact on trade. DGFT may, in
public interest, exempt any person or class or category of persons from any provision of
FTP or any procedure and may, while granting such exemption, impose such conditions
as he may deem fit. Such request may be considered only after consulting committees
asunder:
Description Committee
i. Fixation / modification of product norms under all schemes Norms Committee

ii. Nexus with Capital Goods (CG) and benefits under EPCG Schemes EPCG
Committee
iii. All other issues Policy Relaxation Committee (PRC)
F) Principles of Restriction
DGFT may, through a notification, adopt and enforce any measure necessary for: -
i. Protection of public morals.

ii. Protection of human, animal or plant life or health.
iii. Protection of patents, trademarks and copyrights and the prevention of deceptive
practices.
iv. Prevention of use of prison labour.
v. Protection of national treasures of artistic, historic or archaeological value.
vi. Conservation of exhaustible natural resources.

vii. Protection of trade of fissionable material or material from which they are
derived; and Prevention of traffic in arms, ammunition and implements of war.
G) Restricted Goods
Any goods, export or import of which is restricted under ITC(HS) may be exported or
imported only in accordance with an Authorisation or in terms of a public notice issued in
this regard.
2. EXPORT LICENSE
A) Introduction
An export license is a document issued by the appropriate licensing agency after which
an exporter is allowed to transport his product in a foreign market. The license is only
issued after a careful review of the facts surrounding the given export transaction. Export
license depends on the nature of goods to be transported as well as the destination port.
So, being an exporter it is necessary to determine whether the product or good to be
exported requires an export license or not. While making the determination one must
consider the following necessary points:
 What are you exporting?

 Where are you exporting?
 Who will receive your item?
 What will your items will be used?
B) Canalisation
Canalisation is an important feature of Export License under which certain goods can be
imported only by designated agencies. For an example, an item like gold, in bulk, can be
imported only by specified banks like SBI and some foreign banks or designated
agencies.
C) Application for an Export License

To determine whether a license is needed to export a particular commercial product or
service, an exporter must first classify the item by identifying what is called ITC (HS)
Classifications. Export license are only issued for the goods mentioned in the Schedule 2
of ITC (HS) Classifications of Export and Import items. A proper application can be
submitted to the Director General of Foreign Trade (DGFT). The Export Licensing
Committee under the Chairmanship of Export Commissioner considers such applications
on merits for issue of export licenses.
D) Exports Free unless regulated

The Director General of Foreign Trade (DGFT) from time to time specifies through a
public notice according to which any goods, not included in the ITC (HS) Classifications
of Export and Import items may be exported without a license. Such terms and conditions
may include Minimum Export Price (MEP), registration with specified authorities,
quantitative ceilings and compliance with other laws, rules, regulations.
3. FREE TRADE
A) What is Free Trade
The value of free trade was first observed and documented by Adam Smith in his
magnum opus, The Wealth of Nations, in 1776. Later, David Ricardo made a case for
free trade by presenting specialized an economic proof featuring a single factor of
production with constant productivity of labor in two goods, but with relative
productivity between the goods different across two countries. Ricardo's model
demonstrated the benefits of trading via specialization—states could acquire more than
their labor alone would permit them to produce. This basic model ultimately led to the
formation of one of the fundamental laws of economics: The Law of Comparative
Advantage. The Law of Comparative Advantage states that each member in a group of
trading partners should specialize in and produce the goods in which they possess lowest
opportunity costs relative to other trading partners. This specialization permits trading
partners to then exchange their goods produced as a function of specialization. Under a

policy of free trade, trade via specialization maximizes labor, wealth and quantity of
goods produce, exceeding what an equal number of autarkic states could produce.
B) History of Free Trade

It is known that various prosperous world civilizations throughout history have engaged
in trade. Based on this, theoretical rationalizations as to why a policy of free trade would
be beneficial to nations developed over time, especially in Europe, and especially in
Britain, over the past five centuries. Before the appearance of Free Trade doctrine, and
continuing in opposition to it to this day, the policy of mercantilism had developed in
Europe in the 1500s. Early economists opposed to mercantilism were David Ricardo and
Adam Smith.
Economists that advocated free trade believed trade was the reason why certain
civilizations prospered economically. Adam Smith, for example, pointed to increased
trading as being the reason for the flourishing of not just Mediterranean cultures such as
Egypt, Greece, and Rome, but also of Bengal (East India) and China. The great prosperity
of the Netherlands after throwing off Spanish Imperial rule, and declaring Free Trade and
Freedom of thought, made the Free Trade/Mercantilist dispute the most important
question in economics for centuries. Free trade policies have battled with mercantilist,
protectionist, isolationist, communist, and other policies over the centuries.
Wars have been fought over trade, such as the Peloponnesian War between Athens and
Sparta, the Opium Wars between China and Great Britain, and other colonial wars. All
developed countries have used protectionism due to an interest in raising revenues,
protecting infant industries, special interest pressure, and, prior to the 19th century, a
belief in mercantilism.
Many classical liberals, especially in 19th and early 20th century Britain (e.g. John Stuart
Mill) and in the United States for much of the 20th century (e.g. Cordell Hull), believed
that free trade promoted peace. The British economist John Maynard Keynes (1883-
1946) was brought up on this belief, which underpinned his criticism of the Treaty of
Versailles in 1919 for the damage it did to the interdependent European economy. After a

brief flirtation with protectionism in the early 1930s, he came again to favour free trade
so long as it was combined with internationally coordinated domestic economic policies
to promote high levels of employment, and international economic institutions that meant
that the interests of countries were not pitted against each other. In these circumstances,
'the wisdom of Adam Smith' again applied, he said.
Some degree of Protectionism is nevertheless the norm throughout the world. In most
developed nations, controversial agricultural tariffs are maintained. From 1820 to 1980,
the average tariffs on manufactures in twelve industrial countries ranged from 11 to 32%.
In the developing world, average tariffs on manufactured goods are approximately 34%.
Currently, the World Bank believes that, at most, rates of 20% can be allowed by
developing nations; but Ha-Joon Chang believes higher levels may be justified because
the productivity gap between developing and developed nations is much higher than the
productivity gap which industrial countries faced. (A general feature is that the
underdeveloped nations of today are not in the same position that the developed nations
were in when they had a similar level of technology, because they are weak players in a
competitive system; the developed nations have always been strong players, although
formerly at an overall lower level.) If the main defense of tariffs is to stimulate infant
industries, a tariff must be high enough to allow domestic manufactured goods to
compete for the tariff to be possibly successful. This theory, known as import substitution
industrialization, is largely considered to be ineffective for currently developing nations,
[5]:311
and studies by the World Bank have determined that export-oriented
industrialization policies correlate with higher economic growth as observed with the
Four Asian Tigers. These assessments are based mainly on theory and observational
study of correlations, and thus suffer from a number of weaknesses such as small sample
size and numerous confounding variables (see the critical review section below)
C) Features
 Trade of goods without taxes (including tariffs) or other trade barriers (e.g.,
quotas on imports or subsidies for producers)

 Trade in services without taxes or other trade barriers
 The absence of "trade-distorting" policies (such as taxes, subsidies, regulations, or
laws) that give some firms, households, or factors of production an advantage
over others
 Free access to markets
 Free access to market information
 Inability of firms to distort markets through government-imposed monopoly or
oligopoly power
 The free movement of labor between and within countries
 The free movement of capital between and within countries
D) Opposition of Free Trade
 Free trade is often opposed by domestic industries that would have their profits
and market share reduced by lower prices for imported goods. For example, if
United States tariffs on imported sugar were reduced, U.S. sugar producers would
receive lower prices and profits, while U.S. sugar consumers would spend less for
the same amount of sugar because of those same lower prices. Economics says
that consumers would necessarily gain more than producers would lose.[24][25]
Since each of those few domestic sugar producers would lose a lot while each of a
great number of consumers would gain only a little, domestic producers are more
likely to mobilize against the lifting of tariffs.[23] More generally, producers often
favor domestic subsidies and tariffs on imports in their home countries, while
objecting to subsidies and tariffs in their export markets.
 "Free trade" is opposed by many anti-globalization groups, based on their

assertion that free trade agreements generally do not increase the economic
freedom of the poor, and frequently makes them poorer. These opponents see
free trade deals as being materially harmful to the common people, whether these
agreements are really for free trade or for government-managed trade.
Nevertheless, if the deals are essentially for government-managed trade, arguing

against them is not a direct argument against free trade. For example, it is argued
that it would be wrong to let subsidized corn from the U.S. into Mexico freely
under NAFTA at prices well below production cost (dumping) because of its
ruinous effects to Mexican farmers. Of course, such subsidies violate free trade,
so this argument is not actually against the principle of free trade, but rather its
selective implementation
4. SEZ, EOU/EHTP/BTP/STP
SEZ
The dawn of 2003 brought a special status for Madras Export Processing Zone (MEPZ),
now labeled a Special Economic Zone – a deemed foreign territory from January 1, 2003.
On 4th January East Delhi supplement with Hindustan Times reported on the likely SEZs
in the National Capital Region. On 6th January, the Commerce Ministry has again
contended that in the light of special and differential treatment available to India under
WTO, concessions can be provided to units set up in FTZs and SEZs. Referring to the
Kelkar committee’s recommendation to withdraw exemptions granted to establishments
in free trade zones and special economic zones, the commerce secretary has stressed the
need to have a stable fiscal policy stating that potential investors have taken a decision to
invest only after evaluating their long term options and therefore, now to suddenly even
contemplate withdrawal of the exemptions promised earlier may deal a severe blow to
our expected investments in SEZs. On 8th January, there appeared a feature presentation
on Indore SEZ in The Economic Times terming the zone a paradise for free enterprise.
Above news buzz pictured the SEZ bubble on its full bloom. But bubble might have
burst. Why? - Merely because of a few simple looking but disastrous factors.
The issue is not much that of economic logic behind SEZ program in the Indian context.
Assuming the behavior of some specific variables as stipulated, SEZ is a very powerful
economic tool for catalyzing the growth process during restructure and liberalization of

an economy. Critiques may argue otherwise, but the success of Chinese SEZs is
exemplary.
The decisiveness of the central and state governments, as pointed out by the Commerce
Minister of India himself in his keynote address in a special session on ‘Sharpening our
Competitive Edge Post WTO-India Unbound’ as part of platinum jubilee celebrations at
FICCI, in this regard is definitely crucial and efforts by the central and the state
governments are complementary to each other.
A) The Predicament
The heart of dream unlimited, i.e. successful SEZs in India, lies in one simple proposition
- smart economic policies require smart planning and smart implementation by smart
people to become a smart success. There is no scope for zero-sum game. It means
walking on the edge of sword and dancing on stilts.
The developmental cycle of SEZ from conceptualization, establishment and operation to

its expansion involve about twenty-five steps and each step is crucial for success.
Greenfield SEZs in India, today, have merely achieved six to seven steps that include
obtaining the in-principle approval from the Ministry of Commerce and commissioning
techno-economic feasibility studies. Very few have gone a step further and invited
private developers. Indore SEZ, with already developed area of 138 hectares, looked for
high pitch marketing simultaneously with detailed engineering for remaining land and
searching for a developer. A visit to the zone gave slight comfort feeling because of
developed 138 hectares, but fingers are crossed at future. Techno-economic feasibility
reports for various SEZs like Kanpur Integrated SEZ, Bhadoi SEZ and Taj Economic
Zone has been prepared long back but a few of them are able to tap private developers.
Only with this infinitesimal but euphoric progress, the problems have started cropping up.
Positra, the self claimed pioneering green field SEZ in India has already turned
controversial. Others are also struggling to get private developers and strategic investors.

In fact, the planning for SEZ program in India has some very specific gray areas. The
stated primary objective of India’s SEZ Program is to ensure the export-led growth by
attracting FDI and other private sector investments and thus, using SEZ as catalyst in the
process of reforms, economic development, employment creation, and regional
development. But the dream to achieve the quantum of FDI flow equivalent to or more
than China seems far fetched because of the perceived poor standing of India by
multinationals as reflected from trans-nationality index and perhaps, an inadequate
marketing of the country ‘as a profitable investment destination’. This coupled with the
ad-hoc approach towards the holistic planning for Indian SEZs to strategically position
them as complementary to each other and not competing will make it very difficult to
attract FDI and private developers and investors.
Not only SEZs compete with each other for FDI and private investment, but many other
schemes and projects of the Central and State governments asks for their share of the
cake imposing an uncertainty and competition to the SEZ program. For instance, Uttar
Pradesh is planning to develop a SEZ as well as an Apparel Park in Kanpur. Kanpur,
earlier known as Manchester of India, has got quite a big textile and leather industry
cluster. But now, SEZ and Apparel Park, both the projects are relying upon the same
industry players in the cluster for investment and thus competing with each other.
The concept of SEZ embodies the business planning including strategic positioning of the
zone in the world markets by leveraging on the strong backward linkages with
hinterland/Domestic Tariff Area (DTA) and physical planning covering provision of
world class enabling infrastructure. Therefore, the planning for SEZ requires multi
disciplinary expertise in areas of business, economics, finance, legal and urban &
infrastructure planning. In this context, two aspects are critical. First, inspired by the
Chinese success and experiments with SEZs in many other countries, efforts for
developing SEZs in many States of India are at full pace.
Almost every State is aspiring for SEZ – the dream unlimited and, at least this time,
bureaucratic hassles seem not to play negatively. But sparing top layer bureaucrats,

remaining official machinery at the State level seems to practice the same ‘easy going’
attitude that has hunched many progressive policy initiatives of the Government earlier.
As on earlier occasions, once again, the proper internal marketing of the government’s
policy initiative is missing.
Second, in Indian context, the concept of SEZ being a relatively new phenomenon,
coupled with the demand for brains that can strategically plan and position the individual
SEZs, is facing short supply of requisite real planning expertise. The situation gets more
aggravated when any Tom-Dick or Harry starts claiming the expertise and the mechanism
to avail and hire the real expertise is faulty. The experiences with the bidding for award
of Techno-Economic Feasibility study and preparation of detailed project engineering of
two SEZs are quite interesting in this regard.
In the absence of standardized globally accepted criteria that gives due weight to the
technical expertise of the consulting entities and even followed by international funding
agencies such as World Bank and Asian Development Bank, some incapable consulting
entities get short listed as technically qualified SEZ planners and put the claim of doing
the assignment, surprisingly, at a price ten times lower than the technically sound but the
higher price bidders! Of course, it is not a bad idea to select the expertise through
competitive bidding, but in order to conceptualize and plan the SEZs as an undefeatable
value bundle and marketing them as robust business proposition to the prospective
developers and investors requires an impeccable blend of expertise that, definitely, can be
hired but at a respectable price.
B) The Darning
As with some earlier ambitious programs of the government, SEZ program asks for even
more effective internal marketing- marketing aimed at training and motivating the
internal customers, i.e. government officials, for successful implementation of the SEZ
dream.
Further, the planning for SEZs requires a holistic approach addressing two aspects
specifically. First, all proposed SEZs should be strategically positioned as complementary

to each other to the extent possible and serving their own market niches respectively. It
requires monitoring by the central agency i.e. Ministry of Commerce that provides in-
principle approvals to new SEZs on the basis of pre-feasibility reports being submitted by
the respective State governments. Second, the SEZ scheme should be synchronized with
other schemes for development of specialized industrial parks such as Apparel Park in
Kanpur.
C) Tax and other incentives being offered to the SEZs

As per circular Epces circular no. 39 dated 28-2-2007, issued by EXPORT
PROMOTION COUNCIL FOR EOUs & SEZ UNITS (Ministry of Commerce &
Industry, Government of India)
SEZ units are provided exemption from Income Tax under Section 10AA of the Income
Tax Act, as given in the 2nd Schedule of the SEZ Act, 2005. Section 10AA of the Income
Tax Act, as given in 2nd Schedule of the SEZ Act, 2005 has been amended by the
Finance Bill, 2007. The Finance Bill, 2007,
Accordingly, Tax benefit has been provided only for new units in Special Economic
Zones: Sections 10AA of the Income-tax Act, provides that in computing the total
income of an entrepreneur, from his unit in the special economic zone, the following
deduction shall be allowed
i. Hundred per cent. of profits and gains derived from the export made in eligible
business for a period of five consecutive assessment years beginning from the
year in which such business commences;
ii. Fifty per cent of such profits and gains for further five assessment years and
thereafter;
iii. An amount not exceeding fifty per cent of the profit debited to the profit and loss
account of the previous year in respect of which the deduction is to be allowed
and credited to a reserve account to be created and utilized for the purposes of the
business in the specified manner, for the next five consecutive assessment years

D) Suggestions
India is one of the fastest growing economies of the world. Concept of SEZ is becoming
a major pillar of the economic structure. So far, SEZs have provided job opportunity,
contributed in foreign exchange reserves, developed infrastructure etc. In future, it is
advisable to provide more fiscal and non-fiscal incentives to the developers as well as
entrepreneurs, Tax incentives and subsidies, should be provided on rational basis.
Continuous planning and execution of the plans, periodic review and appraisal of the
plans are required to be more strengthened. Overall cooperation and dedicated services
are required from merchant exporters and manufacturer exporters, business and industry
as partners of Government in the achievement of its stated objectives and goals
In order to obviate the need for litigation and nurture a constructive and conducive
atmosphere, a suitable Grievance Redressal Mechanism should be established, which,
would, hopefully reduce litigation and further, it will create a healthy atmosphere among
developers, entrepreneurs and government
E) Conclusion
SEZs can provide a generic framework to develop automatic systems that offer
comprehensive approaches and tools to assist developers and entrepreneurs to establish
their own standard establishments in less time and with lower costs to overcome the
shortcomings experienced on account of the multiplicity of controls and clearances;
absence of world-class infrastructure, and an unstable fiscal regime and with a view to
attract larger foreign investments in India, it is necessary to continue study considering
the international scenario of this concept, as it is done now, and suggest form time to time
and in the light suggestions from individuals and participation entrepreneur and
Government should revise and update it policy not only to sustain its share in the
development but also to increase it in the interest of the control and development of
country as a whole.
EOU/BTP/STP/EHTP
An EOU / EHTP / STP / BTP unit may export all kinds of goods and services except
items that are prohibited in ITC (HS). Export of Special Chemicals, Organisms,

Materials, Equipment and Technologies (SCOMET) shall be subject to fulfillment of the
conditions indicated in ITC(HS). Procurement and supply of export promotion material
like brochure / literature, pamphlets, hoardings, catalogues, posters etc. Up to a maximum
value limit of 1 .5% of FOB value of previous years exports shall also be allowed..
An EOU / EHTP / STP / BTP unit may import and/ or procure, from DTA or bonded
warehouses in DTA / international exhibition held in India, without
payment of duty, all types of goods, including capital goods, required for its activities,
provided they are not prohibited items of import in the ITC (HS). Any permission
required for import under any other law shall be applicable. Units shall also be permitted
to import goods including capital goods required for approved activity, free of cost or on
loan / lease from clients. Import of capital goods will be on a self certification basis.
Goods imported by a unit shall be with actual user condition and shall be utilized for
export production. State Trading regime shall not apply to EOU manufacturing units.
However, in respect of Chrome Ore / Chrome concentrate, State Trading Regime as
stipulated in export policy of these items, will be applicable to EOUs.
EOU / EHTP / STP / BTP units may import / procure from DTA, without payment of
duty, certain specified goods for creating a central facility. Software EOU/
DTA units may use such facility for export of software.
An EOU engaged in agriculture, animal husbandry, aquaculture, floriculture,

horticulture, pisciculture, viticulture, poultry or sericulture may be permitted to remove
specified goods in connection with its for use outside bonded area.
Gems and jewellery EOUs may source gold / silver/ platinum through nominated
agencies on loan / outright purchase basis. Units obtaining gold/ silver/ platinum from
nominated agencies, either on loan basis or outright purchase basis shall export
gold/ silver / platinum within 90 days from date of release.

EOU / EHTP / STP / BTP units, other than service units, may export to Russian
Federation in Indian Rupees against repayment of State Credit / Escrow Rupee Account
of buyer subject to RBI clearance, if any.
Procurement and export of spares / components, up to 5 % of FOB value of exports, may

be allowed to same consignee / buyer of the export article, subject
to the condition that it shall not count for NFE and direct tax benefits.
BoA may allow, on a case to case basis, requests of EOU / EHTP / STP / BTP units in
sectors other than Gems & Jewellery, for consolidation of goods related to manufactured
articles and export thereof along with manufactured article. Such goods may be allowed
to be imported / procured from DTA by EOU without payment of duty, to the extent of 5
% FOB value of such manufactured articles exported
by the unit in preceding financial year. Details of procured / imported goods and articles
manufactured by the EOU will be listed separately in the export documents. In such
cases, value of procured / imported goods will not be taken into account for calculation of
NFE, DTA sale entitlement & profits accruing out of such procured / imported goods will
not be eligible for income tax benefits. Such procured/ imported goods shall not be
allowed to be sold in DTA. BoA may also specify any other conditions.
5. EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
A) Zero duty EPCG Scheme

Zero duty EPCG scheme allows import of capital goods for pre production, production
and post production (including CKD/SKD thereof as well as computer software systems)
equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be
fulfilled in 6 years reckoned from Authorization issue-date. The scheme will be available
for exporters of engineering & electronic products, basic chemicals & pharmaceuticals,
apparels & textiles, plastics, handicrafts, chemicals & allied products and leather &
leather products; subject to exclusions as provided in HBPv1.
Validity period for import of capital goods and provision for extension in export
obligation period will be as separately provided in the HBPv1. All other provisions

pertaining to concessional 3 % duty EPCG scheme under this Chapter, to the extent they
are not inconsistent with the above provisions of zero duty EPCG scheme, shall be
applicable to the zero duty EPCG scheme also. The zero duty EPCG scheme will be in
operation till 31.3.2011 .
B) Concessional 3% Duty EPCG Scheme
Concessional 3 % duty EPCG scheme allows import of capital goods for pre production,
production and post production (including CKD/SKD thereof as well as computer
software systems) at 3 % Customs duty, subject to an export obligation equivalent to 8
times of duty saved on capital goods imported under EPCG scheme, to
be fulfilled in 8 years reckoned from Authorization issue date. In case of agro units, and
units in cottage or tiny sector, import of capital goods at 3 % Customs duty shall be
allowed subject to fulfilment of export obligation equivalent to 6 times of duty saved on
capital goods imported, in 12 years from Authorization issue-date. For SSI units, import
of capital goods at 3 % Customs duty shall be allowed, subject to fulfilment of export
obligation equivalent to 6 times of duty saved on capital goods, in 8 years from
Authorization issue-date, provided the landed value of such imported capital goods under
the scheme does not exceed Rs. 5 0 lakhs and total investment in plant and machinery
after such imports does not exceed SSI limit. However, in respect of EPCG Authorization
with a duty saved amount of Rs. 1 00 crores or more, export obligation shall be fulfilled
in 12 years. In case CVD is paid in cash on imports under EPCG, incidence of CVD
would not be taken for computation of net duty saved, provided the same is not
CENVATed. Capital goods shall include spares (including refurbished/ reconditioned
spares), tools, jigs, fixtures, dies and moulds.
Second hand capital goods, without any restriction on age, may also be imported under
EPCG scheme. However, import of motor cars, sports utility vehicles/all
purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour
transport operators and companies owning/operating golf resorts, subject to the condition
that:

i. total foreign exchange earning from hotel, travel & tourism and golf tourism
sectors in current and preceding three licensing years is Rs. 1 .5 crores or more.
ii. ‘duty saved’ amount on all EPCG Authorizations issued in a licensing year for
import of motor cars, sports utility vehicles/ all purpose vehicles shall not exceed
5 0% of average foreign exchange earnings from hotel, travel & tourism and golf
tourism sectors in preceding three licensing years.
iii. vehicles imported shall be so registered that the vehicle is used for tourist purpose
only. A copy of the Registration certificate should be submitted to concerned RA
as a confirmation of import of vehicle. However, parts of motor cars, sports utility
vehicles/ all purpose vehicles such as chassis etc. cannot be imported under the
EPCG Scheme. Import of Restricted items of imports mentioned under ITC(HS)
shall only be allowed under EPCG Scheme after approval from EFC at
Headquarters.
iv. A Spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures,
tools, refractory for initial lining and catalyst for initial charge; for existing plant
and machinery (imported earlier, under EPCG or otherwise), shall be allowed to
be imported under the EPCG scheme subject to an export obligation equivalent to
5 0% of the normal export , to be fulfilled in 8 years (6 years for zero duty EPCG
scheme), reckoned from Authorization issue date. This would however be subject
to the condition that the c.i.f. value of import of the above spares etc. will be
limited to 1 0% of the value of plant and machinery imported under the EPCG
scheme. In case of plant and machinery not imported under the EPCG scheme,
c.i.f. value of import of the spares etc. will be limited to 1 0% of the book value of
the plant and machinery.
C) Eligibility
EPCG scheme covers manufacturer exporters with or without supporting

manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and
service providers. Export Promotion Capital Goods (EPCG) Scheme also covers a service
provider who is designated / certified as a Common Service Provider (CSP) by the

DGFT, Department of Commerce or State Industrial Infrastructural Corporation in a
Town of Export Excellence subject to provisions of Foreign Trade Policy/Handbook of
Procedures with the following conditions:-
i. EPCG licence to be given to the CSP should have a clear endorsement giving the
details of the users and the quantum of Export Obligation (EO) which each
ii. user would fulfill;
iii. Such exports will not count towards fulfillment of other specific export
obligations ; and Each one of the users of the CSP apart from the CSP should
furnish 1 00% bank Guarantee (BG) equivalent to their portion of duty foregone
apportioned in terms
iv. of quantum of EO to be discharged by them and the B.G. will be enforced in the
event of the obligation not being fulfilled.
D) Conditions for import of Capital Goods
Import of capital goods shall be subject to Actual User condition till export obligation is
completed.
E) Export obligation
Following conditions shall apply to the fulfillment of the export obligation:-
i. Export Obligation shall be fulfilled by export of goods manufactured/services

rendered by the applicant. Export obligation under the scheme shall be, over and
above, the average level of exports achieved by him in the preceding three
licensing years for the same and similar products within the overall export
obligation period including extended period. Such average would be the
arithmetic mean of export performance in the last three years for the same and
similar products provided that
ii. Premier Trading House (PTH) shall have option of fixing average level of exports
based on arithmetic mean of export performance in the last five years instead of
three years. Up to 50% Export Obligation may also be fulfilled by exports of
other good(s) manufactured or service(s) provided by the same firm / company, or

group company / managed hotel, which has the EPCG authorization. However,
EPCG authorization issued prior to 1 .4.2008 will be governed by earlier policy
provisions. However, in such cases, additional export obligation imposed shall be
over and above average exports achieved by the unit / company / group company /
managed hotel in preceding three years for both the original and the substitute
product(s) / service(s), despite exemptions .
iii. Shipments under Advance Authorization, DFRC, DFIA, DEPB or Drawback
scheme, or incentive schemes under Chapter 3 of FTP; would also count for
fulfilment of EPCG export obligation.
iv. Export obligation can also be fulfilled by the supply ITA-I items to DTA,
provided realization is in free foreign exchange.
v. Exports shall be physical export.
.
F) Provision for BIFR units
Any firm/ company registered with BIFR or any firm/ company acquiring a unit, which is
under BIFR, may be allowed EO extension, as per rehabilitation package prepared by
operating agency and approved by BIFR/ Rehabilitation Department of State
Government, upto 12 years if not specified. Above provisions apply also to SSI units as
per rehabilitation scheme of concerned State government.
6. DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME

An exporter may apply for credit, at specified percentage of FOB value of exports, made
in freely convertible currency. In case of supply by a DTA unit to a SEZ unit/ SEZ
Developer/Co-Developer, an exporter may apply for credit for exports made in freely
convertible currency or payment made from foreign currency account of SEZ Unit/SEZ
Developer/Co-Developer. In addition, the exporter shall also be entitled for DEPB benefit
in case payment is made in Indian Rupees by SEZ Developer/ Co-Developer for supplies
received w.e.f 10.2.2006. Credit shall be available against such export products and at
such rates as may be specified by DGFT by way of public notice. Credit may be utilized
for payment of Customs Duty on freely importable items and/or restricted items. DEPB
Scrips can also be utilized for payment of duty against imports under EPCG Scheme.

Further, DEPB Scrips can also be used / debited towards payment of Customs Duty in
case of EO defaults for Authorizations issued under Chapters 4 and 5 of this Policy.
However, penalty / interest shall be required to be paid in cash. Prohibited items of
exports mentioned in ITC(HS) Book (as amended from time to time) shall not be entitled
for DEPB credit except for the exports effected under transitional facility, wherever
allowed, in terms of FTP. DEPB holder shall have option to pay additional customsduty
in cash as well
A) Validity
Validity period of DEPB for import shall be as prescribed in HBP v1.
B) Transferability
DEPB and / or items imported against it are freely transferable. Transfer of DEPB shall
however be for import at specified port, which shall be the port from where exports have
been made. Imports from a port other than the port of export shall be allowed under TRA
facility as per terms and conditions of DoR notification.
C) Applicability
Additional customs duty / Excise Duty and Special Additional Duty paid in cash or
through debit under DEPB may also be adjusted as CENVAT Credit or Duty Drawback
as per DoR rules.
7. ADVANCE AUTHORISATION SCHEME
A) Advance Authorisation
An Advance Authorisation is issued to allow duty free import of inputs, which are
physically incorporated in export product (making normal allowance for wastage). In

addition, fuel, oil, energy, catalysts which are consumed/ utilised to obtain export
product, may also be allowed. DGFT, by means of Public Notice, may exclude any
product(s) from purview of Advance Authorisation. Duty free import of mandatory

spares upto 1 0% of CIF value of Authorisation which are required to be exported/
supplied with resultant product are allowed under Advance Authorisation. Advance
Authorisations are issued for inputs and export items given under SION.
These can also be issued on the basis of Ad hoc norms or self declared norms.
Advance Authorisation can be issued either to a manufacturer exporter or merchant

exporter tied to supporting manufacturer(s) for:
i. Physical exports (including exports to SEZ); and/ or

ii. Intermediate supplies; and /or
iii. Supply of goods to the categories mentioned in FTP ;
iv. supply of ‘stores’ on board of foreign going vessel/aircraft subject to condition
that there is specific SION in respect of item(s) supplied.In addition, in respect of
supply of goods to specified in FTP, an Advance Authorisation can also be
availed by sub-contractor to such project provided name of subcontractor(s)
appears in main contract. Such Authorisation can also be issued for supplies made
to United Nations Organisations or under Aid Programme of the United Nations
or other multilateral agencies and which are paid for in free foreign exchange.
However, Advance Authorization for import of raw sugar, can be issued either to
a manufacturer exporter or merchant exporter tied to supporting manufacturer(s).
Exports can also be made by procurement of white sugar from any other factory
(ies). This provision shall be applicable forexports from 17.2.2009.
Advance Authorisations are exempted from payment of basic customs duty, additional
customs duty, education cess, anti- dumping duty and safeguard duty, if any.
Advance Authorisation and / or materials imported there under will be with actual user
condition. It will not be transferable even after completion of export obligation. However,
Authorisation holder will have option to dispose off product manufactured out of duty

free inputs once export obligation is completed. In case where CENVAT credit facility on
inputs have been availed for the exported goods, even after completion of export
obligation, the goods imported against Advance Authorisation shall be utilized only in
the manufacture of dutiable goods whether within the same factory or outside (by a
supporting manufacturer), for which the authorisation holder shall produce a certificate
from either the jurisdictional Central Excise Supdt. or Chartered Accountant, at the
option of the exporter, at the time of filing application for EODC to RA concerned.
However, the actual user condition shall not be applicable in case of raw sugar to be
imported from 17.2.2009, till 3 0.09.2009 under Advance Authorization Scheme. Further
the manufacturing wastes/scrap, as allowed, can be disposed off with the payment of
applicable duty before fulfilment of export obligation.
Advance Authorisations necessitate exports with a minimum value addition of

15 %, except for items in Gems & Jewellery sector, Exports to SEZ Units/
supplies to Developers / Co-Developers, irrespective of currency of realization, would

also be covered. For physical exports for which payments are not received in freely
convertible currency, same shall be subject to value addition .In case of Authorisation for
import of Tea, minimum value addition under Advance Authorisation shall be
50%.Similarly, in case of spices duty free import of spices shall be permitted only for
value addition purposes like crushing / grinding /sterilization or for manufacture of oils
and oleoresins and not for simple cleaning, grading, re-packing etc.
Advance Authorisation shall be issued in accordance with Policy and procedure in force
on Authorisation issue date. Validity period of Advance Authorisation for import shall be
as prescribed in HBP v1.
B) Free of Cost Supply for Foreign Buyer
Facility of Advance Authorisation shall also be available where some or all inputs are
supplied free of cost to exporter by foreign buyer. In such cases, for calculation of value
addition, notional value of free of cost inputs along with value of other duty free inputs
shall be taken into consideration. However, if all inputs are supplied free of cost, exporter
shall also have option to follow provision prescribed by DoR.

C) Export Obligation
Period for fulfilment of export obligation under Advance Authorisation shall be as

prescribed in HBP v1.
D) Provision for BIFR
A Any firm / company registered with BIFR or any firm/ units company acquiring a unit,
which is under BIFR shall be allowed Export Obligation Period (EOP) extension as per
rehabilitation package prepared, subject to approval of BIFR or 5 years if not specified,
without payment of composition fee. Above provisions apply also to SSI units as per
rehabilitation scheme of concerned State government.
E) Advance Authorisation
Advance Authorisation can also be issued for annual requirement. Status Certificate
holder and all other categories of exporters having past export performance (in preceding
two years) shall be entitled for Advance Authorisation for Annual Requirement.
Entitlement in terms of CIF value of imports shall be up to 300% of the FOB value of
physical export and / or FOR value of deemed export in preceding licensing year or Rs 1
crore, whichever is higher.
F) Advance Release Orders
Holder of Advance Authorisation for Annual Requirement and Duty Free Import
Authorisation intending to source inputs from indigenous sources / State Trading
Enterprises, in lieu of direct import, has option to source them either against Advance
Release Order (ARO) or Invalidation letter denominated in free foreign exchange / Indian
rupees. However, supplies may be obtained against Authorisation from EOU / EHTP /
BTP / STP / SEZ units, without conversion into ARO or Invalidation letter.
Transferee of DFIA shall also be eligible for ARO / invalidation letter facility.
Validity period of ARO.
G) Back-to-Back Inland

Holder of Advance Authorisation, Advance Authorisation Letter of Credit for Annual
Requirement and DFIA may, instead of applying for an ARO or Invalidation letter, avail
of the facility of Back-to-Back Inland Letter of Credit in accordance with procedure .
H) Prohibited Items
Prohibited items of imports mentioned in ITC(HS) shall not be imported under Advance
Authorisation / DFIA. Further items reserved for imports by STEs cannot be
imported against Advance Authorisation / DFIA. However those items can be procured
from STEs against ARO or Invalidation letter. STEs are also allowed to sell goods on
High Sea Sale basis to holders of Advance Authorisation / DFIA holder. In addition,
STEs are permitted to issue “No Objection Certificate (NOC)” for import by advance
Authorisation/ DFIA holder. Authorisation Holder would be required to file Quarterly
Returns of imports effected against such NOC to concerned STE and STE would submit
half-yearly import figures of such imports to concerned administrative Department for
monitoring with a copy endorsed to DGFT. Similarly prohibited items of exports
mentioned in ITC(HS) shall not be exported under Advance Authorisation / DFIA
scheme. Export of restricted items shall be subject to all conditionality or requirements of
Export Authorisation or permission, as may be required, under Schedule II of ITC (HS).
I) Admissibility
In case of an Advance Authorisation, drawback shall be available for any duty paid
material, whether imported or indigenous, used in goods exported, as per drawback rate
fixed by DoR, Ministry of Finance (Directorate of Drawback). Drawback allowed shall
be mentioned in Authorisation.
8. FOCUS PRODUCT SCHEME (FPS)
A) Objective
Objective is to incentivise export of such products which have high export intensity /
employment potential, so as to offset infrastructure inefficiencies and other associated
costs involved in marketing of these products.

B) Entitlement
Exports of notified products to all countries (including SEZ units) shall be
entitled for Duty Credit scrip equivalent to 2 % of FOB value of exports (in free foreign
exchange) for exports made from 27.8.2009 onwards.
However, Special Focus Product(s) /sector(s), shall be granted Duty Credit Scrip
equivalent to 5 % of FOB value of exports (in free foreign exchange) for exports made
from 27.8.2009 onwards.
C) Market Linked Focus Products Scrip (MLFPS)
Export of Products/Sectors of high export intensity/ employment potential (which are not
covered under present FPS List) would be incentivized at 2 % of FOB value of exports
(in free foreign exchange) under FPS when exported to the Linked Markets (countries),
which are not covered in the present FMS list for exports made from 27.8.2009 onwards.
D) Status Holders Incentive Scrip
With an objective to promote investment in up gradation of technology of some specified

sectors as Status Holders shall be entitled to incentive scrip @1% of FOB value of
exports made during 2 009- 10 and during 2010-11, of these specified sectors, in the form
of duty credit. This shall be over and above any duty
credit scrip claimed/availed.
Status Holders availing Technology Up gradation Fund Scheme (TUFS) benefits (under
Ministry of Textiles) during a particular year shall not be eligible for Status
Holders Incentive Scrip for exports of that year. The Status Holders Incentive Scrip shall
be with Actual User Condition and shall be used for imports of capital
goods (as defined in FTP) relating to the sectors.
The Status Holders of the following Sectors shall be eligible for this Status Holders
Incentive Scrip:

1. Leather Sector (excluding finished leather);
2. Textiles and Jute Sector;
3. Handicrafts;
4. Engineering Sector (excluding Iron & Steel, Nonferrous Metals in primary or
intermediate forms, Automobiles & two wheelers, nuclear reactors &parts and
Ships, Boats and Floating Structures;
5. Plastics; and
6. Basic Chemicals (excluding Pharma Products).
E) Common Provisions of Duty Credit Scrips, except where specifically provided for
Special Provisions
Government reserves the right in public interest, to specify export products or services or
exports to such countries, which shall not be eligible for computation of entitlement.
Further Government reserves the right to impose / change the rate / ceiling on Duty
Credit Scrip.
Similarly, Government may also notify goods which shall not be allowed for
import under Duty Credit Scrip’s.
F) Ineligible Exports
For VKGUY, FMS, FPS (including MLFPS) and Status Categories /Sectors Holders
Incentive Scrip, the following exports categories /sectors shall be ineligible for Duty
Credit Scrip entitlement:
i. EOUs / EHTPs / BTPs who are availing direct tax benefits / exemption;
ii. Export of imported goods covered under FTP;
iii. Exports through transhipment, meaning thereby that exports originating in third
country but transhipped through India;
iv. Deemed Exports;
v. Exports made by SEZ units or SEZ products exported through DTA units; and

vi. Items, which are restricted or prohibited for export under Schedule-2 of Export
Policy in ITC (HS).
G) Counting of Commission
For computation of Duty Credit Scrip Benefits, FOB in FOB value of Exports Value of
Exports (in free foreign exchange) shall include (in free foreign exchange) up to 12.5%
Foreign Agency Commission.
H) Free Transferability
Duty Credit Scrip and items imported against it would be freely transferable.
However, Duty Credit Scrip under SFIS and under Status Holders Incentive Scrip shall
not be freely transferable.
I) Imports Allowed
Duty Credit Scrip may be used for import of inputs or goods including capital goods,
provided same is freely importable and / or restricted under ITC (HS).
J) CENVAT / Drawback
Additional customs duty/excise duty paid in cash or through debit under Duty Credit
scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules,
except under SFIS.
K) TRA Facility
Utilization of Duty Credit Scrip for imports from a port other than port of registration
shall be allowed under Telegraphic Release Advice (TRA) facility as per DoR
notification.
L) Exclusivity of Entitlement
For a shipment, Duty Credit Scrip benefit under any one of the schemes covered in this
Chapter can alone be claimed, at exporter’s option.

M) Import under Lease
Utilization of Duty Credit Scrip shall be permitted for financing payment of duty in case
of import of capital goods under lease financing in terms of provision in FTP.
N) Transfer of Export
Transfer of export performance from one to another Performance shall not be permitted.
Thus, a shipment bill containing name of applicant shall be counted in export
performance / turnover of applicant only if export proceeds from overseas are realized in
applicant’s bank account and this shall be evidenced from BRC / FIRC.
However, for VKGUY, FMS and FPS (including MLFPS), benefits can be claimed either
by the supporting manufacturer (along with disclaimer from the company /
firm who has realized the foreign exchange directly from overseas) or by the company /
firm who has realized the foreign exchange directly from overseas.
9. EXPORT AND TRADING HOUSES
A) Eligibility for export
Merchant as well as Manufacturer Exporters, Service and Trading Houses Providers,

Export Oriented Units (EOUs) and Units Status located in Special Economic Zones
(SEZs), Agri ExportZones (AEZs), Electronic Hardware Technology Parks (EHTPs),
Software Technology Parks (STPs) and Bio- Technology Parks (BTPs) shall be eligible
for status.
B) Status Category
Applicant shall be categorized depending on his total FOB (FOR - for deemed exports)
export performance during current plus previous three years (taken together) upon
exceeding limit below. For Export House (EH) Status, export performance is necessary in
at least two out of four years (i.e., current plus previous three years).

Status Category Export Performance FOB / FOR Value
(Rupees in Crores)
Export House (EH) 20
Star Export House (SEH) 100
Trading House (TH) 500
Star Trading House (STH) 2500
Premier Trading House (PTH) 7500
C) Double Weight age
i. Exporters in Small Scale Industry (SSI) / Tiny other Conditions for Sector /
Cottage Sector, Units registered with KVICs / Grant of Status KVIBs, Units
located in North Eastern States, Sikkim and Jammu & Kashmir, Units exporting
handloom/
ii. handicrafts / hand knotted or silk carpets, exporters exporting to countries in Latin
America / CIS / sub- Saharan Africa as listed in Appendix-9, Units having ISO
9000 (series) / ISO 14 000 (series) / WHOGMP/ HACCP / SEI CMM level-II and
above status granted by agencies listed in Appendix-6 of HBP v1, exports of
services and exports of agro products shall be entitled for double weight age on
exports made for
iii. grant of status. Double Weight age shall be admissible to Merchant as well as
Manufacturer Exporters.
iv. However, a shipment can get double weight age only once in any one of above
categories.
v. Transfer of export performance from one to another is not permitted. Therefore
disclaimer system shall not be allowed for counting of export turnover.
vi. Exports made on re-export basis shall not be counted for recognition.

vii. Exports made by subsidiary of a limited company shall be counted towards export
performance of limited company for recognition only if limited company has a
majority share holding in subsidiary company.
D) Privileges of Export
Status Holder shall be eligible for privileges as under:
E) Trading House Status
Holders
i. Authorization and Customs Clearances for both imports and exports on self-
declaration basis;
ii. Fixation of Input-Output norms on priority within 60 days;
iii. Exemption from compulsory negotiation of documents through banks. Remittance
/ Receipts, however, would be received through banking
iv. channels;
v. 100% retention of foreign exchange in EEFC account;
vi. Exemption from furnishing of BG in Schemes under FTP;
vii. SEHs and above shall be permitted to establish Export Warehouses, as per DoR
guidelines.
viii. For status holders, a decision on conferring of ACP Status shall be communicated
by Customs within 30 days from receipt of application with Customs.
ix. As an option, for Premier Trading House (PTH), the average level of exports
under EPCG Scheme shall be the arithmetic mean of export performance in last
x. 5 years, instead of 3 years.
xi. Status Holders of specified sectors shall be eligible for Status Holder Incentive
Scrip.
xii. Status Holders of Agri. Sector shall be eligible for Agri. Infrastructure Incentive
Scrip under VKGUY of FTP

10. PROMOTIONAL MEASURES IN DEPARTMENT OF COMMERCE
A) Assistance to sports
Scheme for Assistance to States for Developing Export for Developing Export
Infrastructure and Allied Activities (ASIDE) is formulated Infrastructure and to involve
the States in the export effort by providing Allied Activities (ASIDE) assistance to the
States Governments for creating appropriate infrastructure for the development and
growth of exports. The Scheme is administered by Department of Commerce (DoC).
The objective of scheme is to establish a mechanism for involving the State Governments
to participate in funding of infrastructure critical for growth of exports by providing
export performance linked financial assistance to them. The activities aimed at
development of infrastructure for exports can be funded from the scheme linkage with
exports is full established. The specific purposes for which funds allocated under the
Scheme can be sanctioned and utilized are as follows:
 Creation of new Export Promotion Industrial Parks/ Zones (SEZs/Agri Business

Zones) and augmenting facilities in the existing ones.
 Setting up of electronics and other related infrastructure in export conclave.
 Equity participation in infrastructure projects including the setting up of SEZs.
 Meeting requirements of capital outlay of EPIPs/ EPZs/SEZs.
 Development of complementary infrastructure such as, roads connecting the
production centres with the ports, setting up of Inland Container Depots and
Container Freight Stations.
 Stabilizing power supply through additional transformers and islanding of export
production centre etc.
 Development of minor ports and jetties to serve export purpose.
 Assistance for setting up Common Effluent Treatment facilities and
 Any other activity as may be notified by DoC.
B) Market access initiative

Under MAI scheme, Financial assistance is provided (MAI) for export promotion
activities on focus country, focus product basis. Financial assistance is available for
Export Promotion Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of
State Government, Indian Commercial Missions (ICMs) abroad and other
national level institutions/eligible entities as may be notified.
A whole range of activities can be funded under MAI scheme. These include, amongst
others,
i. Market studies/surveys,
ii. Setting up of showroom / warehouse,
iii. Participation in international trade fairs,
iv. Displays in International departmental stores,
v. Publicity campaigns,
vi. Brand promotion,
vii. Reimbursement of registration charges for
Pharmaceuticals and expenses for carrying out clinical trials etc., in fulfilment of
statutory requirements in the buyer country,
viii. Testing charges for engineering products abroad,
ix. Assistance for contesting Anti Dumping litigations etc. Each of these export
promotion activities can receive financial assistance from Government ranging from 25%
to 1 00% of total cost depending upon activity and implementing agency.
Market development
Under MDA Scheme, financial assistance is provided Assistance (MDA) for a range of
export promotion activities implemented by EPCs and Trade Promotion Organizations on
the basis of approved annual action plans. The scheme is administered by DOC.
Assistance includes, amongst others, participation in:
i. Trade Fairs and Buyer Seller meets abroad or in India, and

ii. Export promotions seminars.

iii. Financial assistance with travel grant is available to exporters travelling to focus
areas, viz., Latin America, Africa, CIS region, ASEAN countries, Australia and
New Zealand. In other areas, financial assistance without travel grant is available.
MDA assistance is available for exports having an annual export turnover as prescribed
in MDA guidelines.
C) Meeting expanses for
DOC provides for reimbursement of charges/expenses statutory compliances in for

fulfilling statutory requirements in the buyer country, buyer country for Trade including
registration charges for product registration Related Matters for pharmaceuticals, bio-
technology and agro-chemicals products on recommendation of EPCs. Financial
assistance is also provided for contesting litigation(s) in the foreign
country concerning restrictions/anti dumping duties etc. on particular product(s) of Indian

origin, as provided under the Market Access Initiative (MAI) Scheme of
DOC.
D) Towns of exports
A number of towns have emerged as dynamic industrial Excellence (TEE) clusters

contributing handsomely to India’s exports. It is necessary to grant recognition to these
industrial clusters with a view to maximizing their potential and enabling
them to move higher in the value chain and tap new markets.
Selected towns producing goods of Rs. 750 Crore or more will be notified as Towns of
Export Excellence based on potential for growth in exports. However for TEE in
Handloom, Handicraft, Agriculture and Fisheries sector, threshold limit would be
Rs 150 Crores.
i. Recognized associations of units will be provided financial assistance under MAI

scheme, on priority basis, for export promotion projects for marketing, capacity
building and technological services.

ii. Common Service Providers in these areas shall be entitled for EPCG scheme.
iii. The projects received from TEEs shall be accorded priority by SLEPC for
financial assistance under ASIDE.
E) Brand promotion
IBEF (originally called India Brand Equity Fund and Quality later renamed as India
Brand Equity Foundation) was set up by the Ministry of Commerce on 11th July, 1 996,
with the primary objective to promote and create international awareness of the “Made in
India” label in markets overseas. IBEF aims to promote India as a business
opportunity by creating positive economic perceptions of India globally as well as

effectively present the India business perspective and leverage business partnerships
in a globalised market-place. DOC provides funds for capacity building for up-gradation
of quality to national level Institutions and EPCs to organize training programmes for the
skill improvement of the exporters for quality up-gradation, reduction in rejection,
product improvement etc. as provided under the Market Access Initiative (MAI) Scheme
of DOC.
F) Test Houses
Central Government will assist in modernization and up gradation of test houses and
laboratories to bring them at par with international standards

CHAPTER-8
Risk associated with export
Export pricing is the most important factor in for promoting export and facing
international trade competition. It is important for the exporter to keep the prices down
keeping in mind all export benefits and expenses. However, there is no fixed formula for
successful export pricing and is differ from exporter to exporter depending upon whether
the exporter is a merchant exporter or a manufacturer exporter or exporting through a
canalizing agency.
Like any business transaction, risk is also associated with good to be exported in an
overseas market. Export is risk in international trade is quite different from risks involve
in domestic trade. So, it becomes important to all the risks related to export in
international trade with an extra measure and with a proper risk management.
The various types of export risks involve in an international trade are as follow:
. 1)SmallUnit
Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and
services to foreign markets seems to be more difficult than serving the domestic market.
The lack of knowledge for trade regulations, cultural differences, different languages and
foreign-exchange situations as well as the strain of resources and staff interact like a
block for exporting. Indeed there are some SME's which are exporting, but nearly two-
third of them sell in only to one foreign market
2)CreditRisk
Sometimes because of large distance, it becomes difficult for an exporter to verify the
creditworthiness and reputation of an importer or buyer. Any false buyer can increase the
risk of non-payment, late payment or even straightforward fraud. So, it is necessary for
an exporter to determine the creditworthiness of the foreign buyer. An exporter can seek
the help of commercial firms that can provide assistance in credit-checking of foreign
companies.

3) Poor Quality Risk
Exported goods can be rejected by an importer on the basis of poor quality. So it is
always recommended to properly check the goods to be exported. Sometimes buyer or
importer raises the quality issue just to put pressure on an exporter in order to try and
negotiate a lower price. So, it is better to allow an inspection procedure by an
independent inspection company before shipment. Such an inspection protects both the
importer and the exporter. Inspection is normally done at the request of importer and the
costs for the inspection are borne by the importer or it may be negotiated that they be
included in the contract price.
Alternatively, it may be a good idea to ship one or two samples of the goods being
produced to the importer by an international courier company. The final product
produced to the same standards is always difficult to reduce.
4) Transportation Risks
With the movement of goods from one continent to another, or even within the same
continent, goods face many hazards. There is the risk of theft, damage and possibly the
goods not even arriving at all.
5) Logistic Risk
The exporter must understand all aspects of international logistics, in particular the
contract of carriage. This contract is drawn up between a shipper and a carrier (transport
operator). For this an exporter may refer to Incoterms 2000, ICC publication.
6) Legal Risks
International laws and regulations change frequently. Therefore, it is important for an
exporter to drafts a contract in conjunction with a legal firm, thereby ensuring that the
exporter's interests are taken care of.
7) Political Risk
Political risk arises due to the changes in the government policies or instability in the

government sector. So it is important for an exporter to be constantly aware of the
policies of foreign governments so that they can change their marketing tactics
accordingly and take the necessary steps to prevent loss of business and investment.
8) Unforeseen Risks
Unforeseen risk such as terrorist attack or a natural disaster like an earthquake may cause
damage to exported products. It is therefore important that an exporter ensures a force
majeure clause in the export contract.
9) Exchange Rate Risks

Exchange rate risk is occurs due to the uncertainty in the future value of a currency.
Exchange risk can be avoided by adopting Hedging scheme.
EXPORT RISK MANAGEMENT PLAN
Risk management is a process of thinking analytically about all potential undesirable

outcomes before they happen and setting up measures that will avoid them. There are six
basic elements of the risk management process:
• Establishing the context
• Identifying the risks
• Assessing probability and possible consequences of risks
• Developing strategies to mitigate these risks
• Monitoring and reviewing the outcomes
• Communicating and consulting with the parties involved
A risk management plan helps an exporter to broaden the risk profile for foreign market.
For a small export business, an exporter must keep his risk management analysis clear
and simple.
EXPORT RISK MITIGATION

Export risk mitigations are the various strategies that can be adopted by an exporter to
avoid the risks associated with the export of goods.
 Direct Credit: Export Credit Agencies support exports through the provision of
direct credits to either the importer or the exporter.
o Importer: a buyer credit is provided to the importer to purchase goods.
o Exporter: makes a deferred payment sale; insurance is used to protect the
seller or bank.
 Guarantees
o Bid bond (tender guarantee): protects against exporter’s unrealistic bid or
failure to execute the contract after winning the bid.
o Performance bond: guarantees exporter’s performance after a contract is
signed.
o Advance payment guarantee (letter of indemnity): in the case where an
importer advances funds, guarantees a refund if exporter does not perform.
o Standby letter of credit: issuing bank promises to pay exporter on behalf of
importer.
 Insurance
o Transportation insurance: Covers goods during transport; degree of
coverage varies.
o Credit Insurance: Protects against buyer insolvency or protracted defaults
and/or political risks.
o Seller non-compliance (credit insurance): Covers advance payment risk.
o Foreign exchange risk insurance: Provides a hedge against foreign
exchange risk.
 Hedging
Instruments used to Hedge Price Risk
o Stabilization programs and funds.

o Timing of purchase/sale.

o Fixed price long-term contracts.
o Forward contracts.
o Swaps
UNDERSTANDING OF FOREIGN EXCHANGE RATE
 Introduction
 Spot Exchange Rate
 Forward Exchange Rate
 Method of Quoting Exchange Rates
 Exchange Rate Regime
 Forward Exchange Contracts
 Benefits of Forward Exchange Contract
 Foreign Currency Options
 Flexible Forwards
 Currency Swap
 Foreign Exchange Markets
1) INTRODUCTION
An exporter without any commercial contract is completely exposed of foreign exchange
risks that arises due to the probability of an adverse change in exchange rates. Therefore,
it becomes important for the exporter to gain some knowledge about the foreign
exchange rates, quoting of exchange rates and various factors determining the exchange
rates. In this section, we have discussed various topics related to foreign exchange rates
in detail.
2) SPOT EXCHANGE RATE

Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates
represent the price that a buyer expects to pay for a foreign currency in another currency.
Settlement in case of spot rate is normally done within one or two working days.

3) FORWARD EXCHANGE RATE
The forward exchange rate refers to an exchange rate that is quoted and traded today but
for delivery and payment on a specific future date.
Method of Quoting Exchange Rates

There are two methods of quoting exchange rates:
 Direct Quotation: In this system, variable units of home currency equivalent to a

fixed unit of foreign currency are quoted.
For example: US $ 1= Rs. 42.75
 Indirect Quotation: In this system, variable units of foreign currency as
equivalent to a fixed unit of home currency are quoted.
For example: US $ 2.392= Rs. 100
Before 1993, banks were required to quote all the rates on indirect basis as foreign
currency equivalent to RS. 100 but after 1993 banks are quoting rates on direct basis
only.
4) EXCHANGE RATE REGIME

The exchange rate regime is a method through which a country manages its currency in
respect to foreign currencies and the foreign exchange market.
 Fixed Exchange Rate

A fixed exchange rate is a type of exchange rate regime in which a currency's
value is matched to the value of another single currency or any another measure
of value, such as gold. A fixed exchange rate is also known as pegged exchange
rate. A currency that uses a fixed exchange rate is known as a fixed currency. The
opposite of a fixed exchange rate is a floating exchange rate.
 Floating Exchange Rate
A Floating Exchange Rate is a type of exchange rate regime wherein a currency's
value is allowed to fluctuate according to the foreign exchange market. A
currency that uses a floating exchange rate is known as a floating currency. A

Floating Exchange Rate or a flexible exchange rate and is opposite to the fixed
exchange rate.
 Linked Exchange Rate
A linked exchange rate system is used to equlise the exchange rate of a currency
to another. Linked Exchange Rate system is implemented in Hong Kong to
stabilise the exchange rate between the Hong Kong dollar (HKD) and the United
States dollar (USD).
5) FORWARD EXCHANGE CONTRACTS

A Forward Exchange Contract is a contract between two parties (the Bank and the
customer). One party contract to sell and the other party contracts to buy, one currency
for another, at an agreed future date, at a rate of exchange which is fixed at the time the
contract is entered into.
Benefits of Forward Exchange Contract
 Contracts can be arranged to either buy or sell a foreign currency against your
domestic currency, or against another foreign currency.
 Available in all major currencies.
 Available for any purpose such as trade, investment or other current
commitments.
 Forward exchange contracts must be completed by the customer. A customer
requiring more flexibility may wish to consider Foreign Currency Options.
6) FOREIGN CURRENCY OPTIONS

Foreign Currency Options is a hedging tool that gives the owner the right to buy or sell
the indicated amount of foreign currency at a specified price before a specific date. Like
forward contracts, foreign currency options also eliminate the spot market risk for future
transactions. A currency option is no different from a stock option except that the
underlying asset is foreign exchange. The basic premises remain the same: the buyer of
option has the right but no obligation to enter into a contract with the seller. Therefore the
buyer of a currency option has the right, to his advantage, to enter into the specified
contract.
7) FLEXIBLE FORWARDS
Flexible Forward is a part of foreign exchange that has been developed as an alternative
to forward exchange contracts and currency options. The agreement for flexible forwards
is always singed between two parties (the ‘buyer’ of the flexible forward and the 'seller'
of the flexible forward) to exchange a specified amount (the ‘face value’) of one currency
for another currency at a foreign exchange rate that is determined in accordance with the
mechanisms set out in the agreement at an agreed time and an agreed date (the ‘expiry
time’ on the ‘expiry date’). The exchange then takes place approximately two clear
business days later on the ‘delivery date’).
8) CURRENCY SWAP
A currency swap which is also known as cross currency swap is a foreign exchange
agreement between two countries to exchange a given amount of one currency for
another and, after a specified period of time, to give back the original amounts swapped.
9) FOREIGN EXCHANGE MARKETS

The foreign exchange markets are usually highly liquid as the world's main international
banks provide a market around-the-clock. The Bank for International Settlements
reported that global foreign exchange market turnover daily averages in April was $650
billion in 1998 (at constant exchange rates) and increased to $1.9 trillion in 2004. Trade
in global currency markets has soared over the past three years and is now worth more
than $3.2 trillion a day. The biggest foreign exchange trading centre is London, followed
by New York and Tokyo

CHAPTER-9
Competative advantage of export of shoes from India
The leather industry can benefit from several characteristics of the Indian Market
and the corresponding advantages they offer.
Some of these advantages are:
1. Supply side advantages
-Availability of low cost skilled labour
-Abundance of raw material
-Availability of supporting institutions
2. Demand side advantages
Large and growing domestic and international market
3. Regulatory / policy related advantages
-Government Regulation
-Government Support
-Licensing Policy
Supply Side Advantages
-Availability of low cost skilled labour
India’s advantage as a source of low cost, skilled labour is quite relevant to

industriessuch as manufacturing of leather goods and footwear that are
manufacturing of leathergoods and footwear whic h are relatively labour intensive.India
has among the lowest cost of labour among key footwear producing countries.Labour
costs in leading Footwear producing countries
Country Rs./ hr Euros/ hr
Korea 297.1 7.01

Taiwan 243.4 5.75
Hong Kong 222.85 5.26
Portugal 218.73 5.16
Brazil 61.90 1.46
Indonesia 28.88 0.68
Romania 28.88 0.68
China 24.76 0.58
Vietnam 24.76 0.58
Thailand 20.63 0.48
Pakistan 8.254 0.19
India 8.254 0.19
Overview
In India to low costs, India also has the world’s largest technically trained
manpower in leather craft. The twin advantages of low cost and technical skills
offer India dis tinct competitive advantages of low cost and technical skills offer
India a distinct competitive advantage in this industry.
-Availability of Raw Materials
India is the largest livestock holding country with 21 percent of the large animals and
11percent of small animals in the world. The large population of cattle, buffaloes,
goat andsheep that the country possesses ensures that India has ten percent of the
world’s raw
material base. IN addition, some of the leather available in India is premium quality
andmuch sought after.
-Availability of Supporting Institutions
India has institutions that support the leather industry in specific areas such as
productdevelopment, design and R & D. These institutions enable capability
building in the industry and help it become globally competitive.
a) Product development/ design
A design development centre for leather and leather accessories is underway under
the joint efforts of the council for Leather Exports and the National Institute of Fashion
Technology (NIFT). The design development centre functions from the NIFT campus
in New Delhi.
b) Research and Development Capabilities
The Central Leather Research Institute (CLRI) is the world’s largest leather
Research Institute. CLRI today, is a central hub in Indian leather sector with
directroles in education, research, training, testing, designing, forecasting, planning,
socialempowerment and leading in scienc e and technology relating to leather.
State-of-artfacilities in CLRI support innovation in leather processing, creative designing
of leatherproducts and development of novel environmental technologies for leather
sector.
Demand side advantages
Large Domestic Market and International market
India has a large and growing consuming class (with an annual income of Rs.
20941.36
[376.50 Euro] or above), that constitutes the largest segment of the population
today.
This segment is estimated to constitute nearly 90 million households by 2006-07, up from
just 32.5 million households in 1997-98 – a CAGR of over 12 percent. Coupled

withrelatively lower penetration levels – penetration levels for footwear has been
estimated to be about 60 percent – this represents a large and growing mark et for leather
goods.
Regulatory / policy related advantages
Government Regulation & Support
The Government of India has announced various initiatives to make the leather more
competitive.
Key Policy initiatives include:
De-licensing of integrated tanneries that convert raw hides and skins into finished leather.

Several leather goods have been de-reserved from the small Scale Sector.
Free import of raw hides & skins, semi-finished and finished leather.
Concessional duty on imported machinery and chemicals.
Free export of raw hides & skins, semi-finished and finished leather and leather produc
ts.
Policies to facilitate modernization / up gradation: In June 2005 the government initiated

a Rs. 2788.45 million (50.82 Million Euros) ‘modernizing scheme’ called the
‘Integrated Leather Development Programme’, whereby all leather tanning and
product units will be 15.
Overview
eligible for modernization assistance. The assistanc e will be to the extent of 30%
ofproject cost for Small scale industry (SSI) units and 20% for non-SSI units ,
subject to ceiling of Rs. 4792 thousand per unit (87.36 thousand Euro per unit).
Setting up of leather parks: An outlay of Rs . 4792.7 million (87.36 Million Euro) for
settingup five leather parks – two in Chennai and one each in Nellore, Agra and Kolkata.
12 the Council for Leather Exports has estimated that this scheme will generate a
total investment of Rs . 11633.1 million (2120.05 Million Euros) in about three years.
Establishment of ‘design centres’ at individual manufacturing units, to facilitate

improvement in des ign capabilities: Under this s cheme, 25 % of the project cost
is provided to the units under the market access initiative scheme of the Ministry
Of Commerce and Industry. Several individual units have come forward to
establish their own design centres.
Government Support
With an eye on the potential of the sector, the Indian Government has placed an emphasis
on the Utilization of the available raw materials to maximize returns. It has
introduced a number of initiatives, with the special emphasis on integrated development
of the tanning sector.
These have included raw material augmentation, technology upgrade, and

promotion of environmental cleaner processing options, quality standardization and
human skills development.
To encourage training of unorganized artisan workers, the Government has given support
to well-equipped training institutions to encourage training programmes to be given
jointly with reputed foreign enterprises and experts.

LIMITATIONS AND FINDINGS

Limitations
Throughout the study utmost care has been taken to avoid biases, errors so as to ensure
authenticity and accuracy. But there is possibility for some discrepancies to come in
between due to following limitations:
 Respondents may give their biased opinion, as they know the identity of
interviewer.
 Assumption is made that views and suggestion given by the respondent are his
own perception and idea.
 The study is not free from sampling error.
 Seasonal changes in Export figures may affect the quantitative data.
 I had observe the things but I did not get the practical knowledge.
 Last but not the least and the most deciding factor paucity of time
Findings
1) I found that in Unnao and Kanpur city there are several exporters of leather footwear
but main players are super house and Mirza International Limited.
2) I also found that most of the foreign countries import leather shoes from mirza
international limited.
3) I found that Euro footwear limited do work job for Mirza international limited and
they also export leather shoes to different countries.
4) All the customers are satisfied with the quality of Euro footwear limited.
5) Prices were found to be acceptable.
6) Packaging of its product was up to the mark for the point of view of the
distributorsand importers
7) The documentation for export is quite definite and mannered.

8) There staff is very dedicated towards their work.
9) Management and workforce are very punctual.
SUGGESTIONS
1. They should start making sole in their own workshop.

2. More features has to be added.
3. Collect ideas from software companies and IT professionals must be taken.
4. Facilities during summer training provided were good but venue should be sometimes
changed to some external place.
5. Compensation should be provided in suitable amount by the company, so that that the
trainee will give full interest during the training.
6. Training Should be more realistic. More practical knowledge should be provided.
7. More technical support required.
8. It has need more advertisement, because it has less awareness among customers.
9.Rest hour should increase.
10. The guide should give maximum time to the trainee so that the result obtain will be
more satisfactory.
CONCLUSION

Euro footwear limited is one of the fastest growing company because of their hard work
and dedication towards work that is why their no.of customers are increasing day-by-day
and they are getting more order of shoes as well as sandals.They also work for Mirza
International Limited as a work shop and export shoes and sandals to their customer.They
make Redtape shoes and sandals for Mirza international.Now they are looking for new
customer in abroad so that they can increase their business and more and more
profit.Their management staff , other employees and workforce is to dediacated and hard
working towards their work.They always try to complete their work in time.Now for
increasing the production they are increasing their infrastructure and making new
building.I got great experience during my summer training from Euro footwear limited.
BIBLIOGRAPHY

The lists of reference for the purpose of completing this marketing project are as given
below:
SEARCH ENGINES:
www.google.com / search-Mirza international limited
www.google.com / search-Rahman industries pvt.ltd.
www.google.com / search-Red chief
www.google.com / search-Super house
www.google.com / search-Indian leather footwear industry
www.google.com / search-Shoemac Machinery ltd.
www.google.com / search-Government rules and regulations regarding export
www.eflindia.com
www.google.com / search-Leather council for export
www.google.com / search-CLRI, FDDI,CFTI
www.google.com / search-Footwear infoline
COMPANY RESOURCES:
Company website- www.eflindia.com
Inputs from company personnel
Company Documents
BOOK:
International Institute of Saddlery Technology & Export Management Notes
WORD OF THANKS

I pay my heartly regards to the Mr.Mehboob Rehman and Mr. Mohd.Khalid Shamsi
for lending me their kind support for completion of my Project. I would like to give
thanks to all those who financially , morally support me during the project work.
I am very much thankful to the Management of “EURO FOOTWEAR

LIMITED”. Especially to Mr. SHAMIM AHMED & Mr. SHOEB SHIDDIQUI
whose cooperation and guidance was a milestone in completion of the project work. I am
also thankful to all the staff of EURO FOOTWEAR LIMITED who helped me lot in
preparing the summer project.
Though I have tried my level best in doing such kind of project even then I can not done
any mistake that would have occurred during any project work.
I would like to dedicate this work to my revered institute Ishan Institute of

Management and Technology, Greater Noida where I am getting the shape of future
business manager.
I express my sincere gratitude to honorable Dr. D.K. GARG (Chairman), Ishan

Institute of Management and Technology, Greater Noida for the support and guidance
on the ground of which I have acquired a new field of knowledge.
Towards the end I would like to thank all those who have directly or indirectly helped me
to complete this project successfully.
I would like to welcome any type of suggestion from the side of readers , so that I may
correct anomalies , if any.




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SUMMER TRAINING PROJECT REPORT

In the partial fulfillment of requirement of

Post Graduate Diploma in Marketing Management

SUBMITTED TO: SUBMITTED BY: -

Dr. D.K.Garg Varun Jaiswal

Chairman Enr. No. - MMR-4109

IIMT, Greater Noida Batch – 15th

ISHAN INSTITUTE OF MANAGEMENT &TECHNOLOGY

2, Knowledge Park-1, Greater Noida, Gautam Budh Nagar

Website: www.ishanfamily.com, E-mail: student@ishanfamily.com

Ishan Institute of Management and TechnologyPage 1

“A study of footwear business with reference to M/S Euro Footwear

Ishan Institute of Management and TechnologyPage 2

Ishan Institute of Management and TechnologyPage 3

Date: Name of the guide: Mr.Shamim Ahmed

Seal/Stamp of the organization

Ishan Institute of Management and TechnologyPage 4

I also express my heartiest thanks to my guide Mr. SHAMIM AHMED (MANAGER)

I express my sincere gratitude to honorable Dr. D.K. GARG (Chairman)) of IIMT,

Ishan Institute of Management and TechnologyPage 5

Date: VARUN JAISWAL

Enr No.: MMR-4109

Ishan Institute of Management and TechnologyPage 6

CHAPTER CONTENT PAGE NO.

2. Company profile 29-36

3. Plant and Machinery 37-57

4. Footwear research, technological and 58-76

5. Technical knowledge used in footwear 77-80

6. Prominent players in footwear industry 81-99

7. Rules and regulations and initiatives 100-134

8. Risk associated with export 135-142

Ishan Institute of Management and TechnologyPage 7

Limitations and findings 148-149

Word of thanks 153

Ishan Institute of Management and TechnologyPage 8

Ishan Institute of Management and TechnologyPage 9

1. The Company and its Product line

2. History of footwear industry

3. Plant and machinery

4. footwear educational organization

6. Government rules and regulations

7. Documents required for export

8. Risk associated with export

Ishan Institute of Management and TechnologyPage 10

It is technique of looking ahead a constructive reviewing of future need so that present

O for Overhead expenses

J for Joint efforts

Ishan Institute of Management and TechnologyPage 11

 To learn the making process of shoes and sandals.

 To learn the logistics procedure.

 To know about corporate culture.

 To learn how people work together .

 To learn about documentation procedure.

 To learn about government rules and regulations for export of goods.

Ishan Institute of Management and TechnologyPage 12

a)History of footwear industry

Ishan Institute of Management and TechnologyPage 13

 Footwear industry in small scale sector

The Footwear Industry is a significant segment of the Leather Industry in India.India

The estimated annual footwear production capacity in 1999 is nearly 1736 million

Ishan Institute of Management and TechnologyPage 14

Footwear industry in India is predominantly a cottage industry. The total estimated