German footwear brand Von Wellx has recently relocated their entire production base from China to Agra in India. They make orthopedic footwear that helps in dealing with heel pain, swollen feet and provides greater comfort.
The footwear company has set up two manufacturing units and they plan to produce up to 2.5 million pairs annually in different segments. The setting up of the units are in partnership with India’s Latric industries Group at the Export Promotion Industrial Park (EPIP) in Agra, Uttar Pradesh. The investment from the German footwear brand Von Wellx in the first phase of the project is of Rs 110 crores over two years.
They also have a plan for phase two, where more ancillary industries will also be set up to provide high quality raw materials like chemicals, fabrics and outsoles which are not currently available in India. The major aim of introducing such ancillary industries is to help to reduce imports and improve the quality of Indian made footwears. The units in Agra were inaugurated by Alok Kumar, Additional Chief Secretary, Infrastructure & Industrial Development Department, in an online ceremony.
It is an important milestone in post Covid-19 era that an investment proposal has been materialized within a short span of five months – said Alok Kumar, Additional Chief Secretary, Infrastructure & Industrial Development Department
It is said that the collaboration would create around 10,000 job opportunities in India. Casa Everz Gmbh, the owner of German footwear brand Von Wellx, stated that India was chosen for the collaboration because of the availability of raw materials, government opportunities, and due to the demographic dividend of the country. Since footwear manufacturing is not an easy task and requires a high level of labor, they had to choose a country that would provide them both the resources and the best economic conditions. Hence, after rounds and rounds of discussions they decided on India.
This is the time for India to get into joint ventures with foreign companies. – said Nitin Gadkari, Minister of Road and Transport
According to reports, the company is expected to start two new units, one near Jewar in a 10,000 sq. area and another at Kosi- Kotwan over an area of 7.5 acre.
Due to the restrictions imposed by Beijing and the tension over the alleged improper handling of the COVID-19, many companies are seeking an exit from China and are looking to expand business in other geographies. The strategies to attract foreign investments and to make India a self-reliant nation seems to be on roll and such huge investment from Von Wellx in India is a great example.