The epicentre of the Covid-19 pandemic China (Wuhan) has forced many companies to move or shift their business out of the country and look for other alternatives where their business can prosper. India being in the neighbourhood of China and also the recent policy reforms in favour of setting up new business has attracted a lot of firms. In an attempt to attract the firms India has made an offer of land twice the size of Luxembourg to companies that are moving out China. The states in India have been urged to bring their own policies and programs to boost foreign investments. Providing land with all facilities like power, water, road access has attracted a lot of firms to shift their production to India and also help in boosting our economy.
The German based healthy footwear brand Von Wellx’s owner Casa Everz Gmbh would be shifting the entire shoe production unit of more than three hundred million pairs yearly from China to India with a starting investment of 110 crore rupees.
Casa Everz Gmbh has his products selling all over the globe with 18 manufacturing units and twelve licence across the world, including countries in Europe. His products work on an internationally patented technology named as ‘5 zone Technology’ developed by Naturopath Dr.Walter Mauch who is a German orthopaedic.
Footwear is a daily requirement and is brought my almost every individual, a large number of people look for various designs and comfort to suit their needs. Von Wellx’s provides a wide range of footwear products and various patterns for all age groups. The company provides customized footwear with extra padding and special footwear that will suit the body, relieve the pain/pressure on various parts of the body, increase energy level etc.
The manufacturing unit will be set up in Uttar Pradesh with a production capacity of over 3 million pairs in collaboration with Latric Industries Pvt Ltd. Latric industries currently has a capacity of 5 lakh pairs for Casa Everz Gmbh specifically under which it produces Von Wellx Germany 5 Zones Men's and Women's shoes and also has other product capacities of approximately 5 lakh pairs.
A new unit is being set up with a capacity to produce more than three million pairs with a 2-year time horizon to reach that capacity in collaboration with the UP government.
In phase 2 primary and necessary industries will be set up for availability of superior quality raw materials like special fabrics, chemicals and outsoles which are currently unavailable in India and will help in reducing import cost of raw materials and footwear, also attracting more investment.
The owner of Von Wellx said that footwear industry involves large number of labor requirement and raw material both the factors being available in surplus in India. Also, he said that India has the potential to become the next manufacturing powerhouse of the world if it is supported by business-friendly government policies. Overall, the lucrative offer from the government, the demographic dividend and the availability of raw material were the three top most beneficial points in favor of India.
The shifting the Von Wellx production in India was a very welcome move. The production unit is India is estimated to create more than 10,000 jobs in India and also is a big boost to the other companies to set up their business in India. I believe that if more companies plan to set a new business in India the government should provide them with Special Zones where there is easy availability of land with all amenities, easy policy for compliance, single-window clearance, tax benefits and export incentives.
The government as well as the industries should work in tandem and create a work environment beneficial to both the company as well as the economy of the country. Efforts should be made to compete with industries of other countries and provide a superior consumer experience.
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