BUSINESS ENVIRONMENTGROUP PROJECT PESTLE Analysis of the Footwear Industry for the past few years. Under the Guidance of MR. SUDHENDU BALI Professor - Applied Science Department PEC University of Technology (Project Supervisor) Submitted By Sachin Mour (12108040) Gaurav Dogra (12108016) Sonam Dolma (12108024) Chiranjeev Singh (12108028) Sunil Kumar (12104008) Tanuj Kumar (12104025) PEC University of Technology, Chandigarh (Deemed University) This gap coupled with increasing disposable income. The same has also led to a change in perception of the footwear industry from a basic need based industry to a fashion and style industry. 50. The next most dominant country in exports is Italy with a value share of ~9% followed by Vietnam. Unorganized sector gains its prominence in the Indian .66 pair per annum in comparison to the global average consumption of ~3 pair per annum and developed countries average of 6-7 pair per annum. and for supporting economy through its foreign exchange earnings.9% in value terms making it much lower than China’s share of ~40%. India is the second largest global producer of footwear after China. 800 per pair for exported footwear as compared to ASP of ~Rs. and increasing discretionary spending. Though. growing fashion consciousness. rising middle class and changing consumer preferences provide a tremendous opportunity for the Indian footwear market to grow at a rapid pace going forward. India annually produces ~2. both are estimated to have an equal share of the overall domestic market in value terms. higher disposable income. The Indian footwear industry is highly fragmented with almost 15000 small and medium enterprises operating largely in the unorganized segment. The competitive intensity is high between the two segments and currently. Despite just 10% share of exports in India’s total production volumes. 32. China is the most dominant country in footwear exports having a share of more than 70% in volume terms. its share in world exports in value terms is lower at about 40%. and limited presence of organized segment. However. especially for weaker sections.Indian Footwear Industry: Indian footwear industry holds a crucial place in the Indian economy for its potential for employment. The sharp variation is on account of higher share of leather footwear (~80%) in the total exports as compared to around 20% share in the domestic consumption. its share is almost one third in value terms due to higher Average Selling Price (ASP) of ~Rs. Belgium and Germany each having a share in the range of 2-5%. ~90% are consumed internally while remaining are exported primarily to European nations. unorganized segment dominates the market in sales volumes due to its presence majorly in the low cost rubber/ plastic footwear. Indian footwear sector is estimated at ~Rs. India’s annual footwear consumption of ~2.1 billion pair of which.000 crore. the average per capita footwear consumption in India continues to be low at ~1. Due to this. accounting for 9% of the global annual production of 22 billion pair as compared to China’s share of more than 60%.000 crore and export market of ~Rs. 160 per pair for footwear consumed in the domestic market. Hong Kong. it alone sells almost three out of every four pair of footwear exported worldwide. since China’s exports are dominated by non leather footwear (more than 90% share of non leather footwear in total exports in volume terms) which commands lower ASP as compared to leather footwear.1 billion pair is the third largest globally after China and USA and has recorded a healthy growth over the past decade driven by rise in income levels. In value terms. 18. However. India’s share in the global export market of ~US $ 120 billion is a paltry 1.000 crore which includes domestic market of ~Rs. Germany. weak footwear components industry and limited presence of large scale manufacturing units. though the footwear demand from the European continent has weakened in the recent quarters which is a cause of concern. USA. footwear exports from India have risen from Rs. However. Vietnam.2% and 36.6% in Indian rupee terms. Further. such category of population presents a huge market for the unorganized sector to cater to. India has been unable to optimally utilize its resources evident from the low recovery rate of the livestock. The major dominance is of the European continent whose share is almost 75% in India’s total exports. with almost 2/3rd of India’s population covered under the food security bill which aims to provide daily nutrition needs to an individual at subsidized prices. lax implementation of tax & labour laws and limited investment in assets. Myanmar. ended the FY15 with a much lower growth of 17.0% in the FY14 and 1HFY15 respectively.context due to its price-competitive products which are more suitable and attractive to the price conscious Indian consumer. strong network of tanneries. In absolute terms.0 billion in FY15. The strength of India in the leather footwear sector originates from its large reserves of bovine population. with increasing brand consciousness amongst Indian consumers.5 billion in FY10 to Rs. the on-going crisis in the Euro zone has led to moderation in footwear demand. . 71. 180. Italy and France. India exports largely leather footwear to its main trading partners which include United Kingdom. Nevertheless. influx of large number of global brands and increasing penetration in Tier – II and III cities by the organized footwear companies. skilled and low cost manpower. Our interactions with the management of leading footwear export companies suggest that there has been an evident increase in exports to USA. Further. These factors along with steep transaction cost of doing business in India and high inflationary trends since the past few years have reduced India’s cost competitive advantage against the other low cost footwear producing countries like China. under absorption of fixed expenses and increase in raw material prices which could not be entirely passed on to clients. Their products are cheaper due to involvement of cheap household labour. Indonesia and Vietnam which export non leather footwear mainly to USA. Indonesia etc. use of outdated technology by most tanneries and footwear manufacturers. the exports from India were further impacted on account of the appreciation of rupee against Euro during FY15 as compared to FY14. the ASP for exported footwear has also been on an uptrend with rising raw material prices and favourable foreign currency movements during this period. the profitability of footwear players has also been affected in FY15 due to adverse foreign currency movements. This is in contrast to other major exporters like China. The footwear exports from India have grown at a CAGR of ~14% in dollar terms and by 20% in Indian Rupee (INR) during the five year period ending March 2015 backed by growing demand from European nations and increasing focus of main importing countries to shift sourcing from China to other low cost producing countries. The footwear exports from India which witnessed a healthy YoY growth of 36. and a wellestablished presence in export markets. However. organised players’ market share has made significant gains in the recent past and it continues to be on an uptrend. Besides this. the footwear industry has witnessed healthy growth in export earnings in the recent past and remains amongst the top ten foreign exchange earners for the country. reducing transaction costs and increasing the availability of skilled labour in the country. leather goods and garments. Direct and indirect employment in Indian footwear industry is estimated at around 1. Major Markets for Indian Footwear: The European Union and the USA are the major markets for Indian Footwear accounting for 79. In addition to this. UAE 2. • Department of Industrial Policy and Promotion (DIPP ) provides a comprehensive scheme for modernization and technology up gradation in all the segments of the Leather Industry. footwear components. especially for the weaker sections of the Indian society.48% and Denmark 1. It was started in 2002 and will be continued till 2012.10%.49% of India’s total leather products export. 50 lakh for both categories for technology up-gradation/modernization and/or expansion. Acknowledging the importance of footwear industry. Netherlands 4. which has led to structural changes in the footwear industry. footwear. from tanneries. the industry has been providing large employment opportunities.31%. • This scheme is called “Integrated Development of Leather Sector” (IDLS). the Indian government has taken various measures and initiatives in order to support its growth. . However. Political Analysis The Government of India is supporting the leather industry in enhancing its competitiveness through upgradation and modernization by providing financial assistance.50%. UK 16.22%. • Government had sanctioned Rs 290 Crores for this project and will be implemented through two Program Implementation Units (PIU) namely CLRI and FDDI. France 7.81%.95% and 9.1 million people. The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India’s urban middle class. nonsmall scale units) subject to a ceiling of Rs. The major markets for Indian Footwear are Germany 16. which contributes about 45 per cent of overall footwear market making India the second largest global producer of footwear across varied segments after China. saddlery.18%. USA 9. • Here. Italy 15. These 10 countries together accounts for nearly 81.e.91%. providing infrastructural support in capacity building.Nevertheless. Spain 5.22% share respectively in India’s total footwear export. financial assistance will be provided to the extent of 30% of the cost of plant and machinery for SSI and 20% of cost of plant & machinery for other units (i.32%. strong push is required in various aspects including favourable policies which would help in rationalising tax structure. Portugal 2.66%. for the footwear sector to grow rapidly going forward and compete aggressively with the other low cost producing nations. This can cause delays for retailers in getting spring or fall fashions on time. The company invests in advertising and in store design. mostly towards more added-value products. COMPETITIVE LANDSCAPE Bata India Ltd remained the leader in footwear with a retail value share of 7% in 2014. especially amongst the lower. The latest trends show a compound annual growth rate of about 15 percent and a total market share of Rs 26. managed to register the biggest increase in absolute terms during the year. especially if their wages or medical benefits are less favorable than workers in comparable industries.300 crores.and middle-income classes. is still allowing consumers to increase their footwear purchases. The economic scenario also started showing positive signs of recovery leading to consumers increasing spend.Also. the industry has repeatedly been affected by issues such as workers' rights and child labor laws. . PROSPECTS Footwear is expected to perform strongly over the forecast period with a constant value CAGR of 7% growth and sales expected to touch Rs860 billion by 2019. The company although not the strongest performer in percentage growth terms. The Government of India announced a number of initiatives for the footwear industry in the budgets presented for financial year 2015 and 2016 including cut in excise duties of footwear products. according to industry body Assocham and consulting firms Technopak Advisors and Tecnova India. Bata continues to have a strong presence in terms of number of stores across the country. Footwear is expected to become more affordable over the forecast period and government initiatives to attract foreign direct investment would also help propel growth of the industry. a trade embargo against another company's imports would force clothing wholesalers to find different suppliers. Also. Activists who are not employed by the companies may also picket retailers who purchase clothing from countries known for violating child labor laws. This negative publicity may impact a small clothing retailers' sales and profits. Economic Analysis TRENDS Rising disposable income. Workers picketing their clothing employers impacts production. Union workers in clothing manufacturing plants may picket their employers. The net profitability in the footwear sector is moderate due to high interest and depreciation cost on account of continuous investments required in capital assets and high working capital intensity which is largely funded through bank debt. companies into plastic footwear manufacturing have higher operating profitability (between 5-12%) as compared to rubber footwear manufacturing companies (between 3-8%). Super Tannery Ltd. Liberty Shoes Limited. For a sample of twelve companies. In comparison. generally to the extent of 75% of the total requirements. The overall growth for our sample of listed domestic footwear companies has been about 12% in FY15 as compared to FY14. The profitability for most of the companies in our sample has been under pressure in the recent quarters due to subdued sales growth. The utilization of working capital limits by exporters has been historically high at ~90% for our sample companies as compared to ~55% for our sample of domestic companies. though the demand then weakened in the 2HFY15. companies manufacturing leather footwear tend to have higher profitability (between 1018%) as compared to rubber and plastic footwear manufacturing companies. Mirza International Limited. working capital intensity has averaged ~24% in the past which has been largely funded through short term/ working capital borrowings from banks. Ltd. Bairathi Shoe Company Private Limited . However. companies into branded low value footwear continue to report healthy sales growth of more than 20% with increasing shift in demand for branded footwear and increasing retail presence in Tier II and III cities. domestic footwear companies into high value product segment have witnessed moderate sales growth mainly due to pressure on their volumes. Banik Rubber Industries (India) Pvt. The impact on profitability has been higher for companies manufacturing high value products for the domestic market and export oriented companies while the profitability of companies manufacturing low cost footwear for the domestic market continues to remain robust. Superhouse Limited. Preston India Private Limited and Elastrex Polymers Private Limited ) KH Exports India Private Limited.. our sample of listed export companies has reported a YoY growth of ~18% in FY14 and FY15 with rising exports to USA and healthy demand from the European nations for the most of 1H FY15. Rahman Industries Ltd . improvement in product mix and rationalization of cost structure.A sample of footwear companies which includes 12 1 leading companies in domestic and export markets have witnessed CAGR growth of 17% in operating income during five-year period ending March 2014. Profits/ cash accruals of these companies have remained healthy and expanded almost four times during this period with better economies of scale. Khadim India Limited and Paragon Group (Paragon Polymers Private Limited. Within rubber and plastic footwear category as well. In terms of product mix. 1 Bata India Limited. Relaxo Footwears Limited. Owing to weak economic conditions in India since the past few years. Footwear sector is highly working capital intensive due to substantial investments required in maintaining high raw material as well as finished goods inventory and extending significant credit to clients/ selling partners. especially in the case of footwear exports. increasing raw material prices and adverse foreign currency movements. Because of this upward shift in the lifestyle of the people the Footwear industry in India is going to prosper.52 509.23 times.13 0 210. people are getting shifted towards branded shoes more.95 178.80 2879.With the increase in income and modernization. Here's the data for Big companies in the Indian footwear scenario: Every data is in Rs.Our sample of footwear companies have been consistently investing in P&M.16 Analysis of Social Environment From the past few years with the advent of technology and increase in average income levels of the people there has been an upward shift in the lifestyle of the people. which accounts for about 55 per cent. Nevertheless. debt coverage indicators including Debt/ OPBITDA.06 995.47 552. our sample of companies have reported elevated average gearing levels of ~1. These demographic trends relate to the size of the various demographic groups and their particular wants. The Indian footwear market is dominated by men’s segment. because of their healthy profitability levels.17 103.35 367.50 803.2 times in FY14.34 1554.05 312. interest coverage ratio and NCA/ Total Debt have been comfortable at ~2.87 496.51 184. With all the major brands already having their manufacturing units in India the sector is set to boom. Demographics: .81 132.31 17. increasing capacity.35 578.Consumer demand is driving industry trends that affect footwear manufacturers. Consumer attitudes and opinions changing favorably towards branded shoes: .82 662.68 1353.47 51.51 946.34 104.10 183.10 231.26 times and 28% respectively in FY14. Crore and as Reported march 2015 Company Name Networth Net Assets Liabilitie s Income Debt Expense s Net Profit Liberty Shoes Bata India Relaxo footwears Mirza Internationa l 144.57 277.98 2469. ~4.92 995. followed by . Much of it could be attributed to availability of products at lower prices too. They prefer buying a relatively expensive shoe rather than the one which is cheap with less durability. The funding of such investments has happened majorly through long term bank debt besides promoter’s contribution and internal accruals. expanding retail presence and setting up new manufacturing facilities over the years. Owing to high reliance on external debt for funding of capital expenditure and working capital requirements. 5% (male 187. With the rise of technology. if they succeed in identifying the trends of the consumer buying patterns.With the coming up of different NGO’s and social groups the importance of human life. work ethics.133.175/female 37.401/female 165.540/female 105.143) 55-64 years: 7% (male 43.599) (Source: CIA World Factbook) Meaning that the major portions they can target while considering the designs and type of their footwear is that of kids and adults who comprise of approximately 85% of India’s population.first of all. There are many reasons for this. approximately 50% of the population is in the working class.016. Moreover.764) 25-54 years: 40.695) 15-24 years: 18.1% to 60%.342.According to the World Footwear Congress.696. it gives them a lot of variety to choose from.6% (male 258.202. With the newly developed fascination for e-commerce in India the footwear industry is going to be benefitted from it.048. which account for about 30 per cent and 15 per cent respectively. working conditions.668/female 43.8% (male 34. Buyers are shifting towards E-Commerce websites for value deals. contributing substantially to increased demand for consumer goods. The role of Internet. and health of the . The demographic structure of India is as follows: 0-14 years: 28.175. the great challenges of our times imposing the need for footwear manufacturers and sellers to define new strategies.535/female 243.293. Because of this the dependency ratio is less and hence the standard of living of the people is increasing with the increase in demand of basic necessities like footwear. by 2030 the process of global urbanization will rise from 51. Buying access and trends: .111) 65 years and over: 5. All this has made the purchase of goods easier and the job of the companies and big brands is to ensure that retailers and suppliers don’t give away the products at such low prices that their brand image is sacrificed.625. new online shopping channels and social media is.ladies’ and kids’ segments. Secondly. You don’t have to visit the outlet for purchasing as you can now purchase from your home or office. it saves a lot of time of consumer.810. Coming up of various NGO’s and other social groups: .1% (male 118. more and more buyers are shifting towards E-Commerce websites for purchasing. Other policies like 30 day replacement guarantee also adds to the benefits of using E-Commerce websites. UK and PFI. Many Indian footwear factories have also acquired the ISO 9000. Technological competence of India. more and more students are going to be enrolled in schools and colleges. the cultural Trends. providing the footwear industries to cater to their need for proper footwear. . This results in creation of bad image of the brand among the consumers resulting in the fall of market share of these brands. Employment Levels: . particularly for mid and high priced footwear segments has proven beneficial in the boom of this industry.workers have increased many folds. Excellent facilities for Physical and Chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA. Employment Levels. This is going to affect the footwear industry to some extent. But as far as the present scenario is concerned the footwear industry is set to prosper. So we can say that all these social factors like the demographic dividend of India.According to the recent report by Labour Ministry the unemployment rate increased to 4.With various schemes launched in India promoting Primary and secondary education to children and higher education also.The industry is poised for adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. Educational and Career Trends among the people.9% particularly because of the increase in unemployment in agricultural sector. Moreover with increased level of education and increased job opportunities the employment level is set to increase taking the per capita income to a higher side which is a plus for the footwear industry. Educational and Career Trends: . consumer Buying Patterns have all affected the growth of the footwear industry in India. . ISO 14000 as well as the SA 8000 certifications. Technological Analysis of Footwear Industry Competing technology development: . 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. Germany. Many industries like Nike has been criticized for crimes like child labour. and a huge consumption market: . particularly for mid and high priced footwear segments. agility and durability.first of all.The advent of technology and the technological exchange because of the coming of MNC’s in India has resulted in increase of innovation potential of this industry in India. There are many reasons for this. From the past few years the trend of research funding in design and requirements has been noticed which has resulted in increase in growth of this industry.With its immense populations and abundance in leather the consumption market of the footwear has increased many folds in the previous years. Footwear manufacturers are continuously working for their product innovation to cope with the consumer’s requirements. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins. it saves a lot of time of consumer. Manufacturing maturity and capacity: . 34% polyester and 4% spandex. You don’t have to . Many multi national and local brands are spending a lot on innovating and improving on the existing trends to match the consumer demands and cultural trends of India. With the rise of technology. India offers cheap labour resulting in low cost of production. There are approximately 4500 units involved in manufacturing footwear in India. more and more buyers are shifting towards E-Commerce websites for purchasing. quality finished leather. India offers benefits like low cost of production.The footwear sector has matured from the level of manual footwear manufacturing methods to automated footwear manufacturing systems. Breakthrough product innovations coming in the sector enhancing comfort. abundant raw material. Reebok have introduced new footwear such as “Realflex”. The bulk of production is in men’s leather shoes and leather uppers for both men and ladies. modern shoe making plants. For example-Nike launched the "DriFIT" apparel technology containing 62% cotton. Innovation Potential: . "Easytone" and "Zigtech. which is the main prerequisite for any industry. large human capital with expertise and technology base. This has resulted in buyers shifting towards E-Commerce websites for value deals. All these factors improve the product quality and benefits the consumer. Resource strength of India in the form of materials and skilled manpower is a comparative advantage for the country.that has the capacity to contain sweating. proven strength to produce footwear for global brand leaders and acquired technology competence. Consumer buying mechanisms/technology: . skilled manpower and relatively low cost labor. It has over 200 fully mechanized. second only to China. This has attracted many multinational footwear brands to come and establish in India.Social media systems becoming increasingly popular for marketing to consumers. Along with these many local footwear brands have also cropped up and entered the market. It has an installed capacity of 2. large installed capacities for production of finished leather & footwear. as good as anywhere in the world (including Europe).000 million pairs. India is often referred to as the sleeping giant in footwear terms. Government Spending and Taxation 1. it gives them a lot of variety to choose from.) will evolve a takeout financing scheme in . In Washington and Louisiana states of the United States the most recent step towards the Unfair Competition Act (UCA) that has already been enforced in 2011. Other policies like 30 day replacement guarantee also adds to the benefits of using E-Commerce websites. Those states signed a law to prevent manufacturers using illegal IT to be able to export their goods to the country. They have to ensure lawful business practices and use of legal software in their supply chain. The producers shifted towards designing of products based on the cultural and demographic need of the country. In the current era of economic affairs it is imperative that trade policies across the world ensure a level competing ground through laws that mandate genuine trade practices.visit the outlet for purchasing as you can now purchase from your home or office. Legal Analysis of Footwear Industry IT Laws: . This coupled with cheap labour and rise of ecommerce has resulted in growth of this industry in India. Technology brought innovation and invention in the footwear industry of India. Nike partnered with online retailers such as Myntra and Bigshoebazaar to expand distribution beyond the conventional multi-brand outlets and large retailers. Puma tied up with tow IPL teams Sunrisers Hyderabad and Rajasthan Royals. IIFCL (INFRASTRUCTURE FINANCE CO. thereby preventing the manufacturers using illegal IT from having advantage over the genuine traders. Secondly. It is therefore time for global exporters to completely legalize the IT usage in all business practices and not only ensure but also expand their global trade share. It is also the official licensing partner for Ferrari and the supplier of team and race wear for Scuderia Ferrari. Digital Marketing: . Adidas is Official sportswear partner for Force India. all states in USA have similar mindset for UCA which is an indication for exporters that practicing without legal IT is threat for their business with USA. In 2012. boost.In case of developing nation like India. With the use of digital marketing along with the famous and people’s favourite local superstars and sports-stars there has been constant growth in this industry. Not only the MNC’s but also the local manufacturers have also been benefitted from the technological advancement the country has witnessed.Many companies are using digital media for their product advertising and sponsoring at major events organised in India. it is very important to expand footwear industry share in global market by taking advantage of UCA law. INFRASTRUCTURE: infrastructural According development will to be government given a budget big 2009-2010. Fiscal Policy:. Reebok has dedicated a collection of apparel and accessories inspired by the Force India F1 team. After adoption of this law in two states. The boost the footwear industry the Indian federal government has earmarked a Rs. According to the budget estimation 2009-10 it is estimated as 36.7% in 2008-09.276 crore (us $23. Employment: Although India’s share in global economy is low. 2009 to march31.7% from 36. The footwear industry has potential to provide employment across all sections of the economy. 5.5 billion Grant to be made available to the industry over a span of 5years but that’s not without any string. The fund availability is conditional upon the sector’s attracting an annual investment of 2. The estimated employment potential of footwear industry is to provide 3 lakh jobs in next 3 years. in a bid to draw and facilitate investment in footwear industry. Rajiv Awas Yojna will be introduced with the aim to make the country slum free in next 5 years. its contribution to employment is significant.It is defined as redistribution of income in market system. Eg:-for welfare(financial aid). Footwear industrial parks will be built. In recent study. 2.2 trillion. Transfer Of Payments: are the form of government spending . 4.03 bn. The 2% interest subvention scheme provided by Indian government for certain labour intensive sectors.1. This will facilitate reduced interest rate @BPLR minus 4.) on providing subsidies in budget 2009-2010.5 million ( 30%of which are women). Footwear industry provides employment to uneducated population-40% of employment is represented by unskilled workers doing table work operation in assembly line. it was highlighted that the total employment in footwear sector would amount to 2. A new scheme. There are various subsidies provided by . association. Subsidies: Government plan to spend Rs.social security and government subsidies for certain business(firms). Footwear industry plans to raise fund from domestic and overseas economic sectors in form of joint venture. has been extended from september30.consultation with banks to facilitate incremental lending to the infrastructure sector. 11. encompassing good infrastructure conditions and environmental treatment facilities. issuance of shares and bonds in stock market. 3. establishment of shareholding companies.5% for leather footwear sector on pre-shipment and post-shipment rupee export credit.4. however being a labour-intensive industry. Interest Payments: Due to fiscal consolidation in last four years.2010 which includes footwear sector of the industry. interest payments as percentage of total revenue receipts (net) of central government has shown a significant improvement. Export Growth: Exports can become engine of growth for the entire economy as it develops. Public Debt: Due to the slowdown in the economy in few last years government raised its borrowings. To facilitate flow of credit at reasonable rate. 7.4000crore provided as special fund out of rural infrastructure development fund to small industry development of India. In this view to boost exports Indian government has taken various measures: Adjustment assistance scheme to provide enhanced exports credit and guarantee corporation (ECGC) cover at 95% to badly hit sectors extended up to march 2010.Indian government to boost footwear industry in India. India is largest producer footwear producer after China. A list of investment projects will be prepared in bid .) 6. driven by belief that this would increase total volume of investment in Indian economy. Machinery also benefits from duty free/concessional import regulation.. would benefit the exporters of leather goods including leather footwear. FDI (Foreign Direct Investment): Liberalizing FDI was another important part of India’s reform.44% export of footwear. hides etc. The lowering of value addition norms under DFRC scheme from 33% to 25%. Interest subvention of 2% on preshipment credit for 7 employment oriented export sectors extended beyond the current deadline of september30.Duty free import of raw material (namely raw skins. marketing and technical support for traditional and ethnic Indian footwear products such a mojpuri. It comprises 42. On the smaller scale. jooti and kohlapuri is being provided. 8. There is concessional rate of interest on export credits to mitigate the effects of rupee appreciation which has led to tightening of credit. 2009 to march31. 2010.. Rs. Funding is available to enable tanners to modernise manufacturing facilities in footwear sector. Footwear industry shall raise funds from domestic and overseas economic sectors in form of shares and bonds in the stock market. Government also provided support in terms of improved infrastructure . there is a scheme known as “support to rural artisans scheme. This will incentivize banks and state finance corporation to lend to micro and small enterprises by refinancing 50% of incremental lending to MSE’s during current financial year. to call for investors at home and abroad encouraging the involvement of domestic foreign economic sector in investing in footwear industry. .