Coronavirus Impact: German footwear maker to shift production of over 3 mn pairs per year to India from China
The Germany-based healthy footwear brand Von Wellx, will be shifting its entire shoe production of over three million pairs annually in China to India with an initial investment of Rs 110 crore
New Delhi: Casa Everz Gmbh, the owner of Germany-based healthy footwear brand Von Wellx, will be shifting its entire shoe production of over three million pairs annually in China to India with an initial investment of Rs 110 crore, according to a top official of the company's licensee Iatric Industries Pvt Ltd.
A new manufacturing unit will be set up with a production capacity of over three million pairs in Uttar Pradesh through a collaboration with Iatric Industries Pvt Ltd as part of an understanding with the state government.
"Yes, after multiple rounds of discussions, Casa Everz Gmbh has decided to shift its entire production from China to India," Iatric Industries Pvt Ltd Director and CEO Ashish Jain told PTI in an e-mailed response.
Casa Everz Gmbh had two manufacturing units in China with an annual capacity of over 3 million pairs.
Iatric Industries already has a capacity of 5 lakh pairs for Casa Everz Gmbh specifically under which it produces Von Wellx Germany – 5 Zones Men's and Women's shoes apart from its other product capacities of another 5 lakh pairs, he added.
"Now a new unit will be set up with a production capacity of over 3 million pairs. We have a 2-year time horizon to reach that capacity after all the necessary cooperation with the UP government," Jain said.
When asked about investments, he said, "The investment in Phase 1 of the project will be about Rs 110 crore over two years."
"We also have a plan for phase 2, where ancillary industries will be set up for availability of high-quality raw materials like outsoles, special fabrics and chemicals which are not available in India right now and which will reduce raw material and footwear imports and improve the quality of Indian made footwear, attracting more investment," he added.
Explaining the reasons for Casa Everz Gmbh relocating its production to India from China, Jain said footwear being one of the top labour intensive industries in the world with raw material and labour availability also driving its economic advantage, India offered advantage on both the aspects.
"So, the lucrative opportunity from the government, the demographic dividend of India and raw material availability were the top three winners for India. We are working very closely with the UP government to help us in executing the whole plan," Jain said.
He also said the company "chose India over other locations since it believes that India is going to be the next manufacturing powerhouse of the world if it is well supported by business conducive government policies".
Casa Everz Gmbh has 18 manufacturing units with its 12 licensees across the globe, including Europe, with products selling in over 80 countries.
Its products are healthy footwear based on the internationally patented ''5 Zones technology'' which was developed by German orthopaedic, Naturopath Dr Walter Mauch. Von Wellx Germany – 5 Zones was launched in India in 2019 and is available at over 500 top retail locations and online in India, Jain said.
To help manufacturers, specially footwear competes globally, he said, the company expects the government to design Special Zones where there is provision for easy availability of land, single-window clearances, easy policies for compliances, export incentives and tax holidays "so that we can produce the goods at extremely competitive prices and beat the companies from other countries"
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