Mirza Tanners eyes new markets

Kanpur-based Mirza Tanners Limited (MTL) was eyeing market opportunities in Europe and USA after establishing a foothold in the United Kingdom.

MTL was looking closely at demand in the lucrative and fashion conscious French market in particular. It recently bagged an offshoring order from Cleons worth $10 million to be executed over a period of 18 months.

MTL was in the process of forming an associate company in France in alliance with a French manufacturer with established distribution network. This would improve market access.

MTL's business was segmented into two groups, dealing with upholstery leather and finished footwear.

MTL was primarily an exporter of finished shoes. Its brands included Red Tape and Oaktrak for mens shoes both locally and internationally.

MTL derived 80 per cent of its revenue from exports of men's finished shoes as an offshoring partner to overseas distributors.

Over 70 per cent of exports were to the UK. Of this, 22 per cent was sold under its own brand.

MTL claimed it had close to 15 per cent marketshare in the UK in the mid-segment of male leather shoe section.

MTL recently laucnhed its ladies formal shoes. Its products were exported to South Africa, Australia, New Zealand and Canada as well.

MTL had bagged a Rs 200 million order from a German company in August as part of a strategy to reduce dependence on a single market model. MTL was executing an outsourcing order for a major USA-based brand as well.

In the first quarter of this fiscal, MTL's turnover was Rs 48.41 crore, up 31 per cent year on year.

It would soon be taking up construction of a new factory for upholstery leather. In the footwear segment, it was looking to double its turnover in the current fiscal under its Red Tape brand.