Footwear industry seen at Rs 38,500 cr

Domestic footwear industry is expected to touch a size of Rs 38,500 crore by 2015 on the back of

growing fashion consciousness driven by increasing income levels, a study has said.

At present, the footwear sector is estimated at about Rs 22,000 crore, Assocham said in a study.

"The domestic footwear market is driven by growing fashion consciousness due to increased disposable income among urban middle-class," Assocham Secretary General D S Rawat said.

The survey said low-cost production, abundant availability of raw material and a huge consumption market are the basic features that sets apart the Indian footwear market.

A number of premium footwear brands are foraying into India's tier-II and II cities, accounting for about 55 per cent of the country's overall footwear industry, it said.

Further, it said, footwear market is dominated by men's segment which accounts for about 55 per cent followed by ladies 30 per cent and kids 15 per cent.

About 70 per cent of the labour-intensive footwear industry in India is in the unorganised sector employing about 15 lakh people majority, while the organised sector accounts for remaining 30 per cent and employs over five lakh people, the study said.

Source: Indian Express, Feb 14 2012