REEBOK IN JOINT VENTURE TO MAKE AND SELL IN INDIA
NEW DELHI — Reebok International announced a joint venture Monday with an Indian company to manufacture and market its shoes and apparel in this vast market. It will also further develop footwear sourcing in India for international distribution.
Reebok plans to make India a major manufacturing base for domestic and export sales, according to Muktesh Pant, managing director of the joint venture known as Reebok India Co. “
The Indian firm will be 80 percent owned by Reebok International and 20 percent owned by Phoenix Overseas, a major Indian shoe manufacturer. Phoenix will manufacture and market a full range of sports and fitness footwear, apparel and equipment under the Reebok brand name in more than 50 special sports showrooms across major Indian cities.
Phoenix is setting up a 6 million-pair-per-year facility outside New Delhi for the new venture. As much as 80 percent of production from the Phoenix factory would be exported to the American and European markets.
Reebok, which already is sourcing footwear from Indian makers for the American and European markets, also has set up a wholly owned Indian subsidiary, called Reebok Technical Services, to provide design and manufacturing consultancy services to Indian producers making sports shoes for Reebok’s global requirements.
Reebok officials said its footwear exports out of India in 1995 may be around 1 million pairs. In five years this number could shoot up to 20 million.
Within India, the footwear market is estimated at 400 million to 500 million pairs a year.
“If we get 1 percent of this market, Reebok’s operation in India will become the biggest outside the United States and United Kingdom,” Pant observed.
— Fairchild News Service