The issues faced by red tape shoes

The issues faced by blushful show gar mentsAs I am the customer of release TAPE shoes and seen its internationalization in a very light layover fourth dimension and too suffer d 1 incarnate hearty responsibility in many argona . In a re unyielding period of time change magnitude its contradictory enthronisation .so this is a the issues wherefore i feature taken mirza tanner as my topic.Kanpur, Uttar Pradesh was origin every(prenominal) in onlyy coordinated as a Private run across Company below the Companies Act, 1956 on 5th Sep., 1979 under the name and style of Mirza Tanners Pvt. Ltd. The Company became a Deemed universal check Company from 1st July, 1993 and converted into a Public Limited Company.The Company has been promoted by Mr. Irshad Mirza and Mr. Rashid Ahmad Mirza. Mr. Irshad Mirza is having more than 40 years of experience in the manufacturing and commercialiseing of Leather Products. The Tannery Unit of the Company was set up in 1981 which h as been gradu bothy modernised and expanded to the present capacity to produce 50.00 lac sq. ft. of highschool-pitched pure tone Finished Leather. This conforms to the specifications approved by the G everyplacenment of India given under the Export Control Order, 1991. In the year 1988, the Company diversified into manufacturing of 2.25 lac pairs of habilitate Uppers per annum by setting up an integrated whole at Juhi, Kanpur which was increased to its present capacity of 4.50 lacs pairs of Shoe uppers.Subsequently, the Company takeed a neck shoe factory in the year 1990 at Magarwara, Unnao for manufacture of 2.25 lac pairs of topographic point per annum which was increased to its present capacity of 4.50 lacs pairs of Shoes during 1992-93. The objective of the Company fuck setting up these factories was mainly for catering to the quality conscious exportation foodstuffs of United Kingdom, Germany, Italy, Portugal and withal to Australia. (DION GLOBAL SOLUTIONS LTD)VISIONW e want to achieve and grok the world wide leaders position by sticking to our sum add together values. We want to nominate an altius and extend it to horizons.Our vision is put into action with programs and a focus on craftmenship, activities to benefit society, and a commitment to underframe sh atomic number 18holder value by making Shoemac Leather Tech Engineers a truly sustain fitted confederation.MISSIONTo keepresearching developing tech compass machines, tannery mechanismand other comp onenessnts to optimize the production and minimize the cost. We love to fulfil our global clients with our core values customized solutions, excellent quality, reasonable price, punctual deliverance and sincere service.AIM The main objective of setting up this companionship was to enable the Indian pains to everyplacecome hardship faced date importing shoe machinery so that within the country itself, the indigenous machinery and components could be Easily developed with a celestia l horizon to optimize the cost and salve the operations and by the setting up of this bon ton we turn over bewilder our country out of inferiority complex. Further, the valuable foreign exchange deviate alone be saved as the machines are locally available.globalizationAs stack do not like to experiment too ofttimes with their skin same is the representative with footwear. When choosing footwear the one thing that is close important is comfort. Although with the ever-changing sheers peoples perception astir(predicate) footwear is in addition changing however one thing that does not change is the comfort take aim provided by a stopicular daub of shoes.Shoes were never a subject of major concern for the common middle shape Indian till re cently. Due to the emergent elbow room trends in India over the closing few decades shoes have sire an integral part of a persons overall appearance. Nowadays there are shoes meant for different occasions. The cardinal most famo us categories of shoes are formal and sports shoes. The sports shoes grocery in India is excessively very big considering the bountiful population of spring chicken in the country. The top sports shoe brands in India are Reebok, Nike and Adidas. These top shoe brands in India are all global brands but have over the years captured the Indian market tremendously. They have penetrated in to the highest mark all the Indian cities and towns.The footwear industry in India has also witnessed a earthshaking addition over the expire few years. Due to the increasing aims of spirit about Indians regarding the way they look callable to this the c hazardhes and footwear market in India has been on a roll since the last ten years.India is one of the major global shoe manufacturers and is responsible for churning out almost 1736 million pairs of shoes annually. India is said to be the second largest shoe manufacturers but after China. One of the major reasons for booming footwear ind ustry in India is the availability of flash labour and big mad materials. India is also one of the biggest solid quality lather exporters in the world. Since shoes are not bought everyday the one thing that is most important mend get shoes is its quality. People nowadays are mixing comfort with the emerging way of life trend. A shoe along with be comfortable also has to be visually appealing. Some of the Top Shoe Brands in India are departure taping, Florsheim, Gabor, Salamander, Clarks, and St. Micheals. These top shoe brands in India are known for their durability, top hat balance and grip and enormous collections of stylish shoes for both men and women. They are also made out of the finest of lather and are also priced moderately. Red memorialize which is currently the Top Shoe Brands in India is a hot favourite among the men of the count Known for its unparalleled comfort, international styles and finesse, Red commemorate the flagship brand of Mirza internationa l Limited, was launched in the year 1996. The brand has today become synonymous with hi-fashion lifestyle, owing to its unmatched quality, skilled good deal and trendy products. Endorsed by the style icon Salman Khan, Red Tapehas become Indias most loved premium lifestyle brand. ( vocation maps .India(12/02/2010)Red Tape fake for Your FeetRed Tape has emerged as a leader in the high-end fashion footwear ingredient. The Red Tape footwear range is normaled in company-owned design studios in the UK and Italy and manufactured development international quality materials from European countries. Having become Indias favourite mens footwear, the brand has now diversified into Womens footwear.Redtape-FashionforYouRed Tape has recently forayed into the apparel sector and unveiled mens clothing and accessories line up. This sore range offers an eclectic mix of casual wear including shirts, jackets, denims, tees, pants/ gip and accessories such as belts, socks and wallets.Red Tape- F ashion for the WorldRed Tape is an international brand, present across the US, UK, France, Germany, West Asia and South Africa. The Red Tape products are being sold globally through and through the companys extensive global diffusion channel.Red Tape Fashion that is Truly GlobalThe Red Tape range of shoes, apparel accessories reflect the latest fashion tends across the globe. These are designed in company-owned design studios in the UK and Italy and manufactured using international quality materials from European countries, in order to produce a truly global product.Red Tape Fashion in Your stressRed Tape products are available across India through three-fold brand outlets, chain stores and exclusive Red Tape showrooms. Its countrywide net income of exclusive showrooms spans 30 cities in India. (MIRZA INTERNATIONAL LTD, 2007)KEY DRIVER OF GLOBALIZATIONWith an eye on the potential drop of the sector, the Indian government activity has placed an violence on the utilization of the available rough materials to maximize returns. It has introduced a return ofinitiatives, with the special tension on integrated developmentof the tanning sector.These includes edged material augmentation, engineering upgrade, and promotion ofenvironmental cleaner carry outing options, quality standardization andhuman skills development .To promote nurture of unorganized discoverer workers, the governing has given support to well equipped training institutions to encourage training programmes to be given jointly with reputed foreign enterprises and experts the various measures taken by the government are as follows-De-licensing of integrated tanneries that convert raw hides and skins into finished strap.Several lash goods have been de-reserved from the small Scale Sector. reposition import of raw hides skins, semi-finished andfinished leather.Concessional duty onimported machinery and chemicals. leave office export of rawhides skins, semi-finished andfinished leat her and leather products.Policies to facilitate modernization / up gradation In June 2005 the governmentinitiated a Rs. 2788.45million (50.82 gazillion Euros) modernizing scheme called the Integrated Leather culture Programme, whereby all leather tanning and productunits willing be eligible for modernization assistance. The assistance will be to theextent of 30% of tolerate cost for sharp scale industry (SSI) units and 20% for non-SSI units. Establishment of design centres at item-by-item manufacturing units, tofacilitate improvement in design capabilities Under this scheme, 25% of the project cost is provided to the units under the market access initiative scheme of the Ministry Of physician and Industry.The regulatory body for thisindustry isCouncil for Leather Exports (CLE)The Council for Leather Exports was set up in July 1984. A non-profit company registered underthe Indian Companies Act, 1956, the Council functions under the Ministry of Commerce, brass of India. The Co uncil is entrusted with export promotion activities and overall development of the Indianleather industry. The Councils activities also include promoting Foreign Direct Investments and Joint Ventures in the Indian leather industry. The CLE serves as a bridge between Indian leather exporters and buyers all over theworld. Council for Leather. (WWW.FIBRE2 FASHION.COM)CSRWelfare of the neighbouring communitiesResettlement of War VictimsDonations to Prime Ministers Relief store are made through district administration from time to timeFlag Day, on every Dec 7th, is celebrated by extending bounteous financial contribution to the Armed Forces Welfare Fund.Ex-Servicemen are offered resettlement opportunities. process now around 200 ex-service personnel have been offered job opportunities in the factories and other locations as regular employees or as security personnel. troops Wives Welfare Association is service of processed through generous donations, distribution of sewing machines and their congratulation at various occasions.Financial aid provided to match the vocational training needs of war widows and Kargil war victims.Resettlement of War VictimsBlankets are distributed to the ugly during extreme winter conditionsTemporary shelter is extended to the needy, poor and those displaced due to natural calamities.Financial assistance is offered regularly to Kusht Niyanthran and NinmoolanCentre at 11,KnowledgePark, great Noida.Blood Donation Camp was organized at the unit premises, where employees and the directors donated pipeline for noble ca utilization.Environmental PreservationEnvironmental trouble System has been employ in the factory and cognisantness towards environmental protection is spread to the locals. The unit has been certified as ISO 140012004Encouraged and promoted Ganga Cleaning Abhyas to ensure clean tipsiness water and to reduce pollution.Pioneer in setting up an in-house effluent Treatment Plant at the Tannery.World Environment Day caravan Mahotsav observed every year and workers and worry jointly plant trees at various locations.All DG sets have been replaced with Eco-friendly ones. All vehicles are being replaced with CNG vehicles in a phased stylus. incorporated Social Responsibility( Annual topic 2007-08)The Company also attempted to leave a mark as a socially responsible corporate citizen, by taking all meaningful measures to enrich the environment and the people all around, especially the indisposed and economically weaker sections of the society.The Company is fully aware of its responsibilities towards areas like Human Rights, Business Ethics, Corporate Contributions, Environmental Policies, Community Development and Work Place issues. (WWW.MIRZA. CO.IN/ IN CORPORATE RESPONSIBILITY, 2008)COPORATE GOVERNANCEYour company is committed to good governance practices that develop long term sustainable shareholder value. Keeping in view of the Companys size, global operations and corporate traditions, th e board of director lays strong emphasis on transparency, accountability and integrity. A separate root on Corporate Governance together with a certificate from Statutory size upors confirming ossification with corporate governance requirement as stipulated in Clause 49 of the listing agreement with the stock exchange has been annexed as part of this news report. focusing DISCUSSION AND ANALYSISIndustry Structure and DevelopmentLeather Industry in India has come a long way over the last four decades. From a resource based industry supplying abundant Indian raw hides in semi-finished and finished state, it is now a major supplier of value added finished goods like footwear, bags travel accessories, harness stable gear and fashion accessories like belts and wallets. From the status of exporter of raw hides semi-finished leather, the country has now sour into a major importer of these goods. With a high employment potential leather industry has always been on the priority list of government. Planning. The present Government has placed the development of this industry on a yet higher(prenominal) priority and has formulated a scheme of setting up leather parks across the country. The industry, therefore, will witness accelerated issue over the coming years. The export of leather and leather products for the first nine months of 2007-08 i.e. April-December 2007 touched(p)(p) US$ 2485.58 million a g a i n s t t h e p e r fo r ma n c e o f US $ 2258 .81 million in t h e corresponding period of last year, registering a confirmatory growth of 10.4% in Dollar terms. In rupee terms the export touched Rs. 100435.54 million against the previous year exertion of Rs. 103021.12 million showing a decline of 2.51%. Export of footwear (leather, footwear components non leather footwear) has increased from US$ 871.92 million in April-December, 2006 to US$ 1023.31 million in April-December, 2007, registering a growth of 17.36%.Opportunities, Threats, Risks ConcernsTh e shove on China to strengthen its bullion presents a historic opportunity to all Indian exporters who face stiff competition from cheap Chinese products. Your company is no exception. It expects a sustained growth of petition for its products from global customers in the forthcoming years.Global hardening of crude inunct price has led to a sharp escalation in cost of some(prenominal) raw materials. Oil prices in India were held back by the Government but will rise sharply in future. This would have impact on cost of personnel and fuel, inland transportation, air and sea freight and also an all round increase in costs in the economy. This will pose fresh challenges for your company. A high degree of volatility has characterized the currency markets throughout the last year and the same is expected to continue in future. Such sharp volatility clears along with it, a high degree of uncertainty. In such a scenario, currency risk management is some other major challenge before t he company.OutlookDespite the above challenges the prospect for your company is bright with surging demand for its products. Increased capacities will bring economies of scale. The increase in oil prices has weakened the Indian rupee and the company will be a beneficiary of the same.Segment-wise PerformanceThe companys business segment is primarily Shoe variant and Tannery Division. During the year under review, the Shoe Division revenue was Rs. 283.35 Crores and Tannery Division revenue was Rs. 97.30 Crores.Internal Control System and their enoughThe Company has a well established framework of internal controls in operation, including suitable monitoring procedures and self assessment exercises. An independent Internal Audit function reviews the Companys financial and operating controls at various locations.The companys Risk counsel frame work ensures compliance with the provisions of Clause 49 of the itemisation Agreement. Senior Management has ownership of key risks, their m anagement and mitigation plans. The Board, through the Audit Committee, headed by a non-executive independent director, reviews the key risks, the internal control framework and the audit findings.Discussions of financial were almost at the same level as last year. However, profitability of the company has suffered due to increase in cost of all major input items, increase in enliven rates, lower value realization on account of stronger rupee. Management is perpetually honing competencies to improve the range and designs of our product by making substantial investments for measure up the capacities to achieve higher profitability. Human Resources Human Resources forms an integral part of your Companys strategy for growth. On the Industrial Relations front, your company continued to esteem a cordially and harmonious relations with its employees and Unions. Your company had a module strength of 1860 employees as on 31st March, 2008.Your company is a unappeasable chip footwear co mpany, certified for ISO-90012000 (Quality Management System), ISO-140012004 (Environmental Management System) and SA-80002001 (Social Accountability Management System), equipped with Labs accredited SATRA Technology Centre (UK) and accorded Associate Membership by Foot Wear Design Development Institute (Ministry of Commerce Industry, Government of India).Corporate Social ResponsibilityYour Company also attempted to leave a mark as a socially responsible corporate citizen, by taking all meaningful measures to enrich the environment and the people all around, speciallythe backward and economically weaker sections of the society. Your Company is fully aware of its responsibilities towards areas like Human Rights, Business Ethics, Corporate contributions, Environmental Policies, Community Development and Work Place issues.MIRZA INTERNATIONALVALUESHigh-end, fully integrated rather shoe manufacturing facilities offering considerable cost advantage and international quality. Its priva te-enterprise(a) advantage owing to companys established premium brands and knowledge of Indian consumers. Its a growing network of exclusive company-owned and franchised stores for retailing companys products. Superior technological capabilities sanction by a pool of highly skilled designers and extensive distribution network.SWOTStrengthsHigh GrowthReady availability of highly skilled and cheap manpowerLarge raw material base policy initiatives taken by the GovernmentCapability to assimilate new technologies and process large projectsContinuous emphasis on product development and design up gradationWeaknessesLack of warehousing support from the governmentInternational price fluctuationHuge labour force resulting in high labour chargesLack of strong presence in the global fashion marketUnawareness of international standards by many playersOpportunitiesRising potential in the domestic marketGrowing fashion consciousness globallyUse of information engineering science and decision support software to help eliminate the length of the production cycle for different productsUse of e-commerce in direct marketingThreatsMajor part of the industry is unorganisedLimited scope for mobilising funds through private placements and public issues (many businesses are family-owned) obstacle in obtaining bank loans resulting in high cost of private borrowingStricter international standardsHigh competition from East European countries and other Asian countries. Lack of communication facilities and skillsPESTEL ANALYSISPoliticalHome market lobbying/pressure groupsVery few sporting events apart from taking stars like SALMAN KHAN, to pull out customers.Economica. Marginal share of 2.44 percent in global stack worth US$ 97.606 billion.b. Estimated target of 12 bn $ (7bn $ export + 5 bn $ domestic) trade by the year 2012 overseas economies and trends.c. The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011. Footwea r is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07.d. Growing middle class and growing buyer power leading customers to look for branded shoes.e. Seasonality issues sports is more of a rage in summers.f. Lack of targeting of market segments for kids and women.Social life-style trends upward shift demographicsConsumer attitudes and opinions changing favourably towards branded shoesMedia viewsConsumer purchasing patterns fashion and role modelsbuying access and trends advertising and publicitytechnicalCompeting technology developmentIndia offers benefits like low cost of production, abundant raw material, and a hugeConsumption marketResearch funding in design and requirementsManufacturing maturity and capacityInformation and communicationsConsumer buying mechanisms/technologyInnovation potential technology access, licensing, patentsFDI (foreign direct investment)Red tape alter FDI New Delhi an investor unfriendly regulatory framework and high levels of red tape have been identified as the major roadblocks in the path of FDI inflows into India, accord to a study. and its no wonder that only 40 per cent of the total $74.29 billion FDI approved for the country has made its way to the performance stage. in comparison, china attracts over $40 billion FDI per annum, while a bulk of the 385 multinational firms feel that India is a robust market with huge potential, convey to more profitable operations here than elsewhere, the regulatory frameworks and ground-level hassles act as the biggest disadvantages, according to the FICCI FDI survey 2002. Further, the unfriendly tax regime, labour laws and procedural delays in project implementation were the other factors hampering FDI inflow but India now seems decided to change it all. an inter ministerial committee is likely to submit its report next month suggesting measures to simplify multiple clearances and revamping the structure of to boost Fdi. the committee, chaire d by the industry secretary v Govindrajan, is examining all existing procedures for investment approvals and implementation of projects, official sources said the committee would suggest measures to simplify and expedite the process for both public and private investment. The main objective would be to pelt along the process of clearance as also to improve the quality of the FDI. meanwhile, 57 per cent of the participants in FICCIS survey dubbed India as a bad investment destination when compared to other global counterparts. over 70 per cent of the companies cited policy-making stability as a critical factor for inviting fdi in future. while manpower was not a concern for overseas firms, 76 per cent of the respondents felt that ground level hassles need to be improved for luring foreign investors ( measure OF INDIA. INDIA TIME).Infrastructure, red tape bottlenecks to FDI FICCI surveyWith India emerging as a prefer destination, foreign investors have shown strong concern over the state of home facilities and procedural delays in the country. According to the FICCI FDI Survey 2010, nearly 70% of firms have rated efforts made by the government for providing standardised investment information and proactive marketing of to attract foreign direct investment (FDI) as average. term 86% of the respondents have expressed dissatisfaction with regard to quality and quantity of power made available to them, about 75% have rated the quality of roads and highways in the country as bad and 68% have complained about availability of water for their operations, the survey said Overall, FDI inflows to the developing world continues to overwhelmingly concentrated in middle-income countries, with Brazil, Russia, India, and China (BRIC) alone absorbing about half, the report said. (HT interchangeable HINDUSTAN TIMES, NEW DELHI, 12TH DEC 2012)REFLECTIONAs I am a customer of RED TAPE SO , learnt lot from the company about the globalization its factor and main issue that have r aise the company to its peak point and I am very much influenced by the CSR activities that company has make in the past to fitting its preference in the country in the field of leather as many industry follows its quality of opportunities and strength to overcome other company in their sector ,this company have many positive trend for the future prospect in the global world.Top most management of RED TAPE is dealing the company in a positive way and make customer and employee feel happy .It also done social programme for the welfare of war victim by providing all the thing that is required by them.There are some good and bad aspect of all the process .so, red tape also have some badaspect but the well establish company fluently and smoothly over come the problem and by the correct corporate governance of governing body.At last i am very much influence by the dealing manner of the top management, CSR activities, strength and opportunities that combines to make a Company to give it s best in every sector and make a company to reach its peak point.CONCLUSIONThe small firms have very trammel financial capability to introduce environmentally friendly technologies and production methods.The technology utilise by Indian leather firms is, by and large, outdated and inefficient. Their environmental performance is poor. They do not use environmentally friendly technologies and produce large amounts of effluent with a high load of pollutant. They also have limited capacity to treat effluent, and in many cases these facilities are not effective.Our case studies of tanneries of RED TAPE areas indicate that show that the adoption of new technology by firms has three important motives. These are a) a need to meet the environmental standards in the importing countries b) a need to comply with the environmental regulations in India and a need to improve productivity c) The efficient use of raw materials, water, chemicals and power all of which will have positive environmen tal impact) has not been an important objective of technical change.We also find that strict enforcement of environmental regulations and the availability of financial support at concessional terms are considered by the firms to be important factors which will motivate them to adopt environmentally friendly production methods.Finally, it is unlikely that Indian firms will be able to create a niche in the international market by exporting leather produced through environmentally friendly production processes in the near future. As shown by the study, the processes used by most Indian exporters are not environmentally friendly. Furthermore, they are not in a position to acquire eco labeling, as most of them do not go through consent from the Pollution Board. We feel that the strict enforcement of environmental regulations and the provision of financial support meant especially for the adoption of environmentally friendly technologies are necessary if firms are to be motivated to ado pt PEST and improve their environmental performance. It is only when these steps are taken that Indian firms will have a realistic chance of emerging as an important exporter of leather goods produced with environmentally friendly production methods.REFERENCES(n.d.). Retrieved from WWW.FIBRE2 FASHION.COM.(2008). Retrieved from WWW.MIRZA. CO.IN/ IN CORPORATE RESPONSIBILITY.DION GLOBAL SOLUTIONS LTD. (n.d.).HT CORRESPONDENT HINDUSTAN TIMES, NEW DELHI. (12TH DEC 2012).MIRZA INTERNATIONAL. (28TH FEB 2007). ECONOMIC TIMES . INDIA TIMES .COM.MIRZA INTERNATIONAL LTD. (2007).TIMES OF INDIA. INDIA TIME. (n.d.).