Leather, footwear cos to get funding for brand promotion in global markets
The Commerce and Industry Ministry has invited proposals from Indian leather and footwear companies to grant funding to help them promote their brands in international markets such as the US and Europe, an official said.
The assistance would be provided under a sub-scheme of Indian Footwear, Leather, and Accessories Development Programme.
"The sector needs to be promoted as it holds huge potential. We have big brands in the leather and footwear sector. The government will provide financial support to carry out brand promotion activities in the international markets," the ministry official said.
The government assistance would be restricted to 50 per cent of total project cost for all eligible activities that includes registration charges for Indian brand/logo overseas, display in international departmental stores, publications of world class catalogues, and publicity campaign.
Further, the financial support is subject to a limit of Rs 3 crore for each brand per year for the next three years. The share of the Indian manufacturer would be balance 50 per cent of the project cost.
The sub-scheme aims at providing international branding support to leading Indian manufacturers in leather, footwear and accessories sector to achieve brands as assets and higher valuations for their products and facilitate access to Indian products in the international niche market.
To avail the benefit, a company should have cash profits for last three years, minimum exports or domestic sales of Rs 75 crore per year of products manufactured by them, and undertaking viable brand promotion programmes.
Explaining importance of the programme, the official said that Indian exports in leather and footwear sector mainly caters to international brands currently. But several suppliers have gained knowledge and experience over the years and they can now create their own brands and become a major player in global markets.
"Presently, the marketing initiatives of domestic firms in global markets are poor and negligible. A brand is key to wealth creation and can be used to create demand," the official added.
Commenting on the programme, Farida Group Chairman M Rafeeque Ahmed said the government should make certain changes in this scheme and make it more viable for companies.