A hub of over 60 units, Indore’s footwear industry has been forced to decrease production by 30- 50 per cent. Reduced demand and high logistics expenses amid surging prices are some of the contributing factors.
Indore footwear manufacturers mostly produce items from recycled materials and distribute them to over seven states, namely- Punjab, Haryana, Chhattisgarh, Assam, Rajasthan and other northeastern states.
“Almost every unit is operating on decreased output because an average of 30 to 50 per cent of production is curtailed,” stated Girish Punjabi, head of the Indore Footwear Manufacturers Association. “Since our prices are significantly higher than those of other states due to higher logistical costs, demand from other states has significantly decreased.”
He also said that Assam and the Northeast markets need to wait for a week to dispatch goods, whereas Delhi and Mumbai almost dispatch daily. Owing to daily dispatches and numerous logistics options in multiple states, the elevated costs have hurt the footwear industry.
As per the association, the probable market size of the Indore footwear industry is approximately Rs. 250 – Rs. 300 crore (US $ 29.51 million – US $ 35.42 million ). The association has been requesting the Government to provide a common platform for local manufacturers to facilitate research, development and reach new markets.
