Superhouse to pump Rs 50 cr in capacity expansion

New Delhi, June 7 (UNI) Leather goods manufacturer Superhouse today said it will invest Rs 50 crore in the next one year to increase its footwear capacity by 50 per cent.

''We are going to set up two additional footwear units in Agra and Kanpur for which land has already been acquired in the two cities. The present capacity of 10,000 units will be scaled to 15,000 by the end of this year,'' company's Chairman and Managing Director Mukhtarul Amin told reporters here.

The increased capacity will cater to demand arising in the US markets, he added.

In order to meet the demand for raw material, the company will also set up a new tannery at Unnao offering additional one lakh sq feet of leather per month. This will be in addition to the existing two lakh sq ft of leather manufactured in the tanneries at Kanpur.

The company's expansion plans will be funded through internal accruals and loans from financial Institutions, Mr Amin said.

The company sources 85 per cent of its revenue through exports mostly to the European countries.

''We expect to raise our revenues from current Rs 300 crore to Rs 400 crore in this fiscal,'' said Amin.

Recently, Europe Footwear Summit held in Spain showed that many European countries aim to have manufacturing units in India, said Amin adding ''We are looking forward to have partnership with them.'' UNI