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Ara Shoes AG, Germany - the 6th largest branded footwear
house in the world and No. 1 shoe manufacturer in Europe -
entered into a Broad Understanding with Tata South East Asia
Limited, Hong Kong, to jointly manufacture up to 1.5 Million
pairs of footwear per annum in China for the next five years.
Ara Shoes AG has the following brands in their Group - Ara,
Lloyd, Think, Legero, A & W. Ara sells close to 14 million
pairs per annum and has a turnover of US$ 780 million (Euro
600 million). This Group is one of the most successful European
footwear groups and has massive expansion plans for the future.
Tata South East Asia, is a wholly owned subsidiary of Tata
International. Leather is one of the 5 Global Business Units
(GBU) of Tata International, and is India's largest exporter
of leather and leather products.
Under this manufacturing arrangement Tata South East Asia,
will organize the following in China for the Ara Group:
South Africa subsidiaries and joint ventures
- Bring in new Ideas and concepts on a continuous basis
using our design studio.
- Build a full fledged prototype development centre in China
for the Ara Group, offering the complete value added service
of prototype development, bulk sampling, fitting trials
and production trials.
- Tata South East Asia and its partners will facilitate
the smooth shift of footwear manufacturing from their plants
in Portugal and other parts of Europe. The manufacturing
base will be built up from the existing level of 350,000
pairs per annum to a level of 1,500,000 Pairs in the next
two years (1.5 Million Pairs per annum).
- Tata International and Tata South East Asia will supply
leathers to various Ara manufacturing centres worldwide.
"This arrangement is a major break through in Tata International's
efforts to build the footwear business into a major business
for our Leather and Leather Products GBU," said Mr Deoras.
The Arrangement was signed by Mr Zimmerer, Manging Director
- Ara Shoes AG and Mr Sudhir Deoras, Managing Director - Tata
International Ltd on 2nd May 2005 in Langenfeld, Germany,
in the presence of Ara AG, Group Chairman, Mr Rovert Roeseller.
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