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Case Study : Relaxo Footwear Ltd.

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Productivity Improvement in Footwear Company

India produces nearly 3000mn pairs of footwear annually out of which 10% are exports. The country accounts for nearly 15% of the total footwear output of the world which is over Rs 20,000mn pairs. The global footwear market which is growing at a CAGR of about 5 %, is currently estimated at about Rs 10.2tn is likely to reach Rs 12.34tn by 2015.

The industry is highly unorganized with 70% of the market with unorganized sector and remaining 30% organized. As per the ASSOCHAM report, Indian footwear industry is likely to reach about Rs 387bn by 2015 from the current level of about Rs. 220bn growing at a CAGR of 15%.

The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India’s urban middle class, which contributes about 45 per cent of overall footwear market, making India the second largest global producer of footwear across varied segments after China. The Indian footwear industry is divided into various segments – Mass (low-value footwear), Casuals, Sports/Active, Premium Leather and Premium Non-Leather Footwear.

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