Lidcap eyes outsourcing orders from US

Leather Industries Development Corporation of Andhra Pradesh (Lidcap) is eyeing outsourcing contracts from big shoe companies like Wal-Mart of US to build business and employment opportunities in AP leather industry.

The corporation is engaged in negotiations with a number of national and international companies on outsourcing of their manufacturing requirements apart from setting up new units in the upcoming leather parks in Andhra Pradesh, according to B Gopala Krishna Reddy, the minister for small and cottage industries and employment generation.

Addressing a press conference her on Friday, the minster said that the infrastructural facilities and skill upgradation programmes for local artisans had been taken up simultaneously to fully utilise the abundant raw material and skills available in the state, and to tap new employment opportunities by way of outsourcing opportunities.

The government had announced a comprehensive plan 'Malupu' in October, 2002 with an estimated outlay of Rs 550 crore to be implemented in five years.

Under this, 27 mini leather parks and several medium and mega parks have been planned to set up for leather manufacturing export units at strategic points in the state. Training and skill upgradation of rural artisans, engaged in the conventional leather industry, would also be taken up.

An international leather export park(NILEX) at Hyderabad, an international leather complex at Nellore and a mega leather industrial park in Chittoor district are among the other infrastructural facilities being readied for the development of leather industry in the state, the minister added.