The European anti-dumping duties against leather footwear from China and Vietnam have led a large Indian shoe company, Mirza International to forecast revenues of 1 billion rupees (€17.4m-$22.1m) for its 3rd quarter. In the 2nd quarter, its net sales rose to Rs851 million (€14.8m-$18.8m), as compared to Rs550 million in the year-ago quarter. The net profit totaled Rs80 million (€1.4m-$1.8m), as compared to Rs26 million last year. About 80 percent of the company’s production has been exported so far this year, and 85 percent of it went to the European Union.
Many other Indian companies expect to benefit from the measures taken by the European Union. The Indian government recently sent its minister of state for commerce, Jairam Ramesh, to meet with officials from the country’s Council for Leather Exports (CLE) to sort out and identify specific ways to capitalize on them. While pointing out that Taiwanese companies have expressed greater interest in investing in India, Ramesh reportedly said one focus will be to diversify footwear production from mostly high-end products, selling for $15-20 a pair, to more low-priced leather shoes priced at $5-9 per pair. Another strategy for global competition could be for Indian footwear producers to increase their production of non-leather footwear, Ramesh said.