Kerala-based VKC Group keen to set up unit in Telangana
Hyderabad: Close on the heels of Kerala-based textiles company Kitex choosing Telangana to set up a new unit, another Kerala company VKC Group is keen to set up a unit to manufacture footwear in Telangana and is actively engaged in discussion with the State government. The unit could attract investment of Rs 100 crore over […]
Hyderabad: Close on the heels of Kerala-based textiles company Kitex choosing Telangana to set up a new unit, another Kerala company VKC Group is keen to set up a unit to manufacture footwear in Telangana and is actively engaged in discussion with the State government. The unit could attract investment of Rs 100 crore over a three-year period, generating 2,000 jobs.
VKC Group has 24 manufacturing units spread across seven States of India (including Kerala, AP, Assam, and Haryana) and Sri Lanka, Sudan, and Bangladesh. The group currently provides direct employment to around 6,000 and another 4,000 get employed through its vendors. The company works with 1.5 lakh dealers/retailers across its network.
V Abdul Razak, MD, VKC Group, told Telangana Today in an exclusive interview, “We launched our first product in 1986 and since then have rolled out several models in the footwear segment bringing in several innovations. We have established a strong manufacturing base covering India, Africa, and South Asia. Within India, the south is a major market for us contributing to 65 per cent of total sales. To expand our footprint here, we are planning to set up a greenfield unit in Telangana.”
He further added, “We are in talks with the Telangana government and are exploring locations to set up a unit in the State. We are scouting for a suitable location near Hyderabad. Typically, we invest Rs 25 crore in a greenfield unit, generating 500 jobs in the first phase, which can take the total investment to Rs 100 crore in 3-4 years, quadrupling job creation to 2,000. We may require five acres of land for the unit in the State. The initial production capacity could be 25,000 pairs a day. We will cater to Telangana and neighbouring markets from this unit.”
Growth plans
The 1984-born VKC Group today has a daily production of around five lakh pairs of footwear and has been adapting innovative technologies. The company uses rubber, polyvinyl chloride, synthetic leather, and polyurethane, sourced from within India as well as from suppliers worldwide.
The company has over 1,000 models and created 700 new designs across footwear categories to cater to different use cases/functionalities, backed by a dedicated R&D and designing team.
The company is exploring opportunities to foray into orthopaedic footwear to cater to health-conscious customers and safety footwear to cater to the needs of workers in industry and mining sectors. The company also sees scope for setting up units for leather bags, wallets, and belts in the next 2-3 years, as part of its diversification.
VKC Group is expecting revenue of Rs 2,500 crore this fiscal. Currently, exports contribute to about five per cent of overall revenues. “We are catering to the Middle East, Africa and have just forayed into Europe. We will make further inroads into European markets soon. By 2030, we want to double our global revenues to Rs 5,000 crore. We will invest Rs 200-250 crore in the coming years to achieve this,” Razak informed.
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