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Three shoemakers shell out Tk 177cr for new plants

Jagaran Chakma
The footwear sector is set to get a fresh investment of Tk 177 crore through three companies seeking to grab a share of the country's growing domestic market.
One of the companies is Walkar, a sister concern of Pran-RFL Group, which would be putting in Tk 150 crore to expand its existing manufacturing facilities.
"We already set up six footwear manufacturing units at Danga Industrial Park in Narsingdi and another four units will be set up next year to raise production on a massive scale," said Kamruzzaman Kamal, the group's marketing director.
He said some 12 lakh pairs can be manufactured per month at the existing factory and the capacity would increase fourfold next year. Moreover, the number of people it employs directly would also double from around 500.
“We have a plan to catch the local market and go for exports next year," he said.
Kamal said they were in talks with global footwear brands and the prospective buyers had already visited the factory to inspect compliance and quality. He said they were using finished leather from local tanneries and accessories from China and India.
The other two companies are separate ventures of Saiful Islam, president of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, in partnership with two Indian shoemakers.
Of his joint ventures, Footsteps Bangladesh came about in association with VKC Footwear, which would be investing Tk 16.8 crore ($2 million).
VKC is the second largest footwear manufacturer and marketer in India with an annual turnover of Rs 3,000 crore. Islam said Footsteps
plans to export to the Middle East and other new markets.
The other joint venture, Sanghavi Shoe Accessories Bangladesh, is with Sanghavi Shoe Accessories Pvt Ltd, which would be investing around Tk 10 crore ($1.2 million) to cater to both the local and foreign markets.
Bangladesh bagged $438 million last fiscal year in export earnings from the footwear sector, becoming the world's sixth largest footwear and leather goods exporter.
Islam said Bangladesh was also the world's 6th biggest footwear consumer with per capita consumption of over 1.67 pairs per year.
Purchasing capacity of consumers is increas-
ing every year and the companies have huge potential, he added.
Nasir Khan, managing director of Jennys Shoes, which stands beside Bata, Apex, Bay Emporium and Orion Footwear as a major market player, believes the domestic market sees footwear sales of around Tk 10,000 to Tk 12,000 crore annually.
It is growing at 10 to 12 percent on an average, which acted as encouragement for the investors, he said.
The leather sector will be the next export driver so foreign and local investment is always encouraging for the sector's development, added Khan.