The Hindu : Tamil Nadu / Chennai News : "Talks with Apache Footwear at final stage"

Online edition of India's National Newspaper
Saturday, Dec 10, 2005

Tamil Nadu

Tamil Nadu - Chennai

"Talks with Apache Footwear at final stage"

Staff Reporter

The unique outsourcing project is significant for the State

EXHIBTION: The Small Industries Secretary, Rameshram Mishra (left), visiting `Outsourcing 2005' fair in Chennai on Friday. — Photo : R. Shivaji Rao

CHENNAI: Taiwan-based Apache Footwear, a major supplier to globally renowned sports shoe giant Adidas, is in an advanced stage of negotiations with the Tamil Nadu Government for setting up a production facility in the State.

It will be a unique project in the outsourcing sphere and significant for the State, as Apache proposes to recruit 18,000 persons over three years, Small Industries Secretary Rameshram Mishra said here on Friday. The company intends to recruit even eighth standard pass-outs.

Inaugurating a two-day `Outsourcing-2005' exhibition, he listed out the investments in the pipeline, including Apache, in the State. The exhibition is being organised by the Small Industries Service Institute.

The Taiwan company has identified land for the facility, Mr. Mishra later told The Hindu. He said the unit would be located at Oragadam, on the city outskirts. Apache proposed to invest $70 million [about Rs. 300 crores] in the project. The negotiations had reached the final stage.

Globalisation had tremendously benefited the outsourcing industry. The State was a preferred outsourcing destination as it boasted of a good blend of skill and innovation. Flextronics, a leading hardware manufacturer, was among the companies that were keen on investing in the State. Apart from being a preferred outsourcing destination, the State was also attracting investments from non-resident Indians. "There is a trend of reverse flow," he said. Some 90 non-resident Indians were returning and planned to invest in bio-technology.

Some of the parameters considered by the investors were the availability of land, water and fiscal incentives. The Government was initiating several measures, including the creation of Special Economic Zones, and proposals to set up SEZs in Tuticorin and Cuddalore were under consideration. Another aspect that has had a bearing on the decision of investors' was the ability of the State to facilitate outsourcing.

For the growth of outsourcing, which would generate employment and, as a result, improve the purchasing power of the people, one of the essential pre-requisites was the need for handholding of small and medium enterprises by major industries, Mr. Mishra said.

G.M. Ambhore, Director, SISI, said the exhibition sought to develop marketing linkages for small-scale industrial units. He detailed the various programmes offered by SISI.

Ramakrishna Garg, General Manager, State Bank of India, listed the bank's initiatives for the benefit of SMEs. The bank was extending collateral free loans to the units.

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