Tamil Nadu government signs pact for Rs 2,250 crore investment in leather sector

Chenai:

Tamil Nadu government on Tuesday signed five MoUs for an investment worth Rs 2,250 crore in footwear and leather sector in the presence of Chief Minister MK Stalin who unveiled the “Policy shoes and leather goods from Tamil Nadu 2022”.

The policy aims to attract investment of Rs 20,000 crore in the leather sector by 2025 and create job opportunities for 2 lakh people.

This would turn Tamil Nadu into the hottest destination for manufacturing shoes and leather products in Asia, he said and called on industries to popularize “Make In Tamil Nadu” products on the global stage.

“In order to achieve the $1 trillion economy by 2030, Tamil Nadu should attract capital-intensive high-tech industries and employment-intensive industries,” he said. said at the 2022 Tamil Nadu Footwear and Leather Sector Conclave here.

KICL SEMS, Wagon International, KICL, Walkaroo and KICL (shoes cluster) are the five companies with which the state government has signed the MoUs. These would generate jobs for 37,450 people.

Also, the Chief Minister laid the foundation stone for a Rs 400 crore mega shoe manufacturing park in Panapakkam, Ranipet on the occasion.

Several global fashion brands have a connection with Tamil Nadu.

Shoes from well-known luxury brands such as Louis Vuitton, Giorgio Armani, Gucci, Clarks, Cole Haan, Daniel Hechter, Bugatti, Prada, Zara, Coach, Tommy Hilfiger, Hush Puppies, Ecco, Johnston & Murphy, Hugo Boss, Pierre Cardin, and Florsheim, are either made in Tamil Nadu or the raw materials come from the state.

The state is India’s second largest economy, a leader in the traditional leather sector and champions the growth of footwear, he said.

“The state has a well-established industrial ecosystem of high-performing sectors such as electronics, textiles, information technology, automobiles, and automotive components,” the policy document states.

In addition, the state offers a host of benefits in terms of human capital, knowledge and research, infrastructure, diversified economy and favorable investment climate, he said.

The policy will increase the productivity of existing players and make Tamil Nadu the preferred destination for footwear exporters.

Tamil Nadu has emerged as a natural leader in the footwear segment, contributing 26% of national manufacturing output and 48% of national exports.

Existing shoe manufacturing clusters in Tamil Nadu can be leveraged to meet growing domestic demand and export requirements for shoes, the policy says.

Apart from creating an enabling ecosystem and a resilient supply chain for footwear manufacturing by supporting infrastructure in terms of clusters, parks and common facilities, the policy would improve the ecosystem of footwear and components non-leather by supporting auxiliary units in addition to encouraging exports.

Footwear-related industries or component industries located outside the clusters are eligible for a fixed capital grant (FCS) of 10 percent of eligible fixed asset investment to be disbursed in 10 equal annual installments.

The company can choose to avail the FCS from the date of commercial production or after reaching the minimum eligible investment threshold of Rs 150 crore and the minimum employment threshold of 100 jobs, whichever is later, did he declare.

“The state has quite a number of footwear and leather manufacturing units in India. Leather goods made in Tamil Nadu are in high demand in the international market,” said the Chief Minister presiding over the event. .

Ambur, Ranipet, Vaniyambadi, Vellore, Peranampattu, Tiruchirappalli, Dindigul, Erode and Chennai are among the major production centers for leather and leather goods.

He said Tamil Nadu is the only state in the country to implement zero liquid discharge in tanneries.