Adidas To Indigenise Operations

Adidas (India), the local arm of the global footwear giant Adidas AG, is planning to totally indigenise its Indian operations as part of its strategy to become cost competitive in the country.

The company, which is at present importing around 80 percent of its raw material requirement, intends to step up its sourcing from local sources to reduce the cost of its products.

"Adidas AG has already subsidised most of the imported components which are used by the local manufacturers. It is not possible to subsidise these goods further.

Now, we are looking at local suppliers to cut down on our manufacturing costs, though total quality control would be maintained", pointed out a company source.

 

The company had recently announced the launch of its international range of sports footwear, apparel and accessories in the country.

Initially, around 22 models in footwear have been launched covering such categories as running, tennis and basketball shoes.

According to company sources, these products employ the latest Adidas technology like the Torsion system, point of deflection system, adiprene, adiwear, predator and traxion.

The pricing of these products are range from Rs 1199 to Rs 2999. The apparels would range from Rs 299 for a T-shirt to Rs 2499 for a track suit.

These prices fall in the premium range and there is a huge price differential between these and the other products in the similar category.

Adidas (India) Trading, which is a joint venture between Adidas AG's wholly owned subsidiary in India and Magnum Trading company, sources all its products from local manufacturers. it sources its footwear from Lakhani Shoes with which the company has forged a technical tie-up.

Its apparels are being sourced from Magnum, its joint venture partner.

Adidas has also tied up with Phoenix for marketing of its products.

Besides, Adidas (India) Trading Ltd-the 80:20 local joint venture between Adidas (India) and Magnum Trading Company, is all set to launch a whole new range of products in the market. These products include cricket and golf gear including accessories.