The issues faced by red tape shoes

The issues faced by red tape officeAs I am the customer of RED tape recording shoe and seen its globalization in a very short period quantify and in any case need with and through with(p) corporal social responsibility in many ara . In a limited period of time increased its orthogonal investment .so this is a the issues why i have taken mirza tanner as my topic.Kanpur, Uttar Pradesh was originally incorporated as a Private Limited high society under the Companies Act, 1956 on 5th Sep., 1979 under the name and style of Mirza Tanners Pvt. Ltd. The follow became a Deemed Public Limited Company from 1st July, 1993 and changeed into a Public Limited Company.The Company has been promoted by Mr. Irshad Mirza and Mr. Rashid Ahmad Mirza. Mr. Irshad Mirza is having more than 40 course of studys of experience in the manufacturing and merchandising of slash Products. The Tannery Unit of the Company was set up in 1981 which has been gradually modernised and expanded to the presen t capacity to produce 50.00 lac sq. ft. of high flavour Finished Leather. This conforms to the specifications approved by the Government of India perishn under the export Control Order, 1991. In the year 1988, the Company diversified into manufacturing of 2.25 lac pairs of Shoe Uppers per annum by setting up an integrated unit at Juhi, Kanpur which was increased to its present capacity of 4.50 lacs pairs of Shoe uppers.Subsequently, the Company established a complete shoe factory in the year 1990 at Magar fighta, Unnao for manufacture of 2.25 lac pairs of Shoes per annum which was increased to its present capacity of 4.50 lacs pairs of Shoes during 1992-93. The object of the Company behind setting up these factories was mainly for catering to the quality conscious export markets of United Kingdom, Germany, Italy, Portugal and besides to Australia. (DION GLOBAL SOLUTIONS LTD)VISIONWe want to deliver the goods and embrace the world wide leaders position by sticking to our middl e care fors. We want to reach an altius and extend it to horizons.Our vision is put into action through programs and a focus on craftmenship, activities to benefit society, and a commitment to build shareholder rate by making Shoemac Leather Tech Engineers a genuinely sustainable company.MISSIONTo keepresearching developing tech savvy machines, tannery mechanismand other comp matchlessnts to optimize the production and minimize the cost. We love to satisfy our global clients with our core values customized solutions, excellent quality, reasonable price, punctual delivery and sincere service.AIM The main objective of setting up this company was to enable the Indian persistence to overcome hardship faced while importing shoe machinery so that within the country itself, the indigenous machinery and components could be Easily developed with a attend to optimize the cost and economize the operations and by the setting up of this company we have bring our country out of inferiority complex. Further, the valuable foreign exchange forget be saved as the machines are locally getable.GLOBALIZATIONAs people do not resembling to experiment as well much with their skin same is the case with footwear. When choosing footwear the one thing that is just about strategic is comfort. Although with the changing trends peoples perception about footwear is also changing but one thing that does not change is the comfort level provided by a particular mug of shoe.Shoes were never a repress of major concern for the common middle class Indian till recently. Due to the emerging formulate trends in India over the last few decades shoes have become an integral part of a persons overall appearance. Nowadays there are shoes meant for different occasions. The two most famous categories of shoes are formal and sports shoes. The sports shoes market in India is also very big considering the large population of youth in the country. The top sports shoe gulls in India are Reebok, Nike and Adidas. These top shoe brands in India are all international brands but have over the years captured the Indian market tremendously. They have penetrated in almost all the Indian cities and towns.The footwear industry in India has also witnessed a significant growth over the last few years. Due to the increase levels of consciousness about Indians regarding the way they look due to this the clothes and footwear market in India has been on a roll since the last ten years.India is one of the major global shoe manufacturers and is responsible for churning out almost 1736 million pairs of shoes annually. India is said to be the second largest shoe manufacturers only after chinaware. One of the major reasons for booming footwear industry in India is the availability of cheap labour and abundant raw materials. India is also one of the biggest good quality welt exporters in the world. Since shoes are not bought everyday the one thing that is most important while purchasing shoe s is its quality. People today are mixing comfort with the emerging fashion trend. A shoe along with being comfortable also has to be visually appealing. Some of the vertex Shoe Brands in India are ruddy Tape, Florsheim, Gabor, Salamander, Clarks, and St. Micheals. These top shoe brands in India are k this instantn for their durability, superior balance and grip and enormous collections of stylish shoes for both men and women. They are also identify out of the finest of flog and are also priced moderately. violent Tape which is currently the Top Shoe Brands in India is a hot favourite among the men of the count Known for its unparalleled comfort, international styles and finesse, Red Tape the flagship brand of Mirza International Limited, was launched in the year 1996. The brand has today become synonymous with hi-fashion lifestyle, owing to its unmatched quality, skilled craftsmanship and trendy products. Endorsed by the style icon Salman Khan, Red Tapehas become Indias most loved premium lifestyle brand. (Business maps .India(12/02/2010)Red Tape Fashion for Your FeetRed Tape has emerged as a leader in the high-end fashion footwear segment. The Red Tape footwear range is designed in company-owned design studios in the UK and Italy and manufactured using international quality materials from European countries. Having become Indias favourite mens footwear, the brand has now diversified into Womens footwear.Redtape-FashionforYouRed Tape has recently forayed into the apparel sector and unveiled mens clothing and accessories line up. This new range offers an eclectic mix of unremarkable wear including shirts, jackets, denims, tees, pants/shorts and accessories such as belts, socks and wallets.Red Tape- Fashion for the WorldRed Tape is an international brand, present across the US, UK, France, Germany, West Asia and in the south Africa. The Red Tape products are being sold globally through the companys extensive global distribution channel.Red Tape Fash ion that is Truly orbicularThe Red Tape range of shoes, apparel accessories reflect the latest fashion tends across the globe. These are designed in company-owned design studios in the UK and Italy and manufactured using international quality materials from European countries, in order to produce a truly global product.Red Tape Fashion in Your ReachRed Tape products are available across India through multiple brand outlets, chain stores and pocket Red Tape showrooms. Its countrywide network of exclusive showrooms spans 30 cities in India. (MIRZA INTERNATIONAL LTD, 2007)KEY DRIVER OF GLOBALIZATIONWith an eye on the potential of the sector, the Indian Government has placed an emphasis on the utilization of the available raw materials to maximize returns. It has introduced a number ofinitiatives, with the special emphasis on integrated developmentof the tanning sector.These includes raw material augmentation, technology upgrade, and promotion ofenvironmental sightlyer processing o ptions, quality standardization andhuman skills development .To encourage training of unorganized artisan workers, the Government has given support to well equip training institutions to encourage training programmes to be given jointly with reputed foreign enterprises and experts the various measures taken by the administration are as follows-De-licensing of integrated tanneries that convert raw hides and skins into finished leather.Several leather goods have been de-reserved from the small Scale Sector. destitute import of raw hides skins, semi-finished andfinished leather.Concessional duty onimported machinery and chemicals.Free export of rawhides skins, semi-finished andfinished leather and leather products.Policies to facilitate modernization / up gradation In June 2005 the governmentinitiated a Rs. 2788.45million (50.82Million Euros) modernizing object called the Integrated Leather Development Programme, whereby all leather tanning and productunits will be eligible for m odernization assistance. The assistance will be to theextent of 30% of construe cost for Small scale industry (SSI) units and 20% for non-SSI units. Establishment of design centres at individual manufacturing units, tofacilitate rectifyment in design capabilities Under this scheme, 25% of the project cost is provided to the units under the market access initiative scheme of the Ministry Of business and Industry.The regulatory body for thisindustry isCouncil for Leather Exports (CLE)The Council for Leather Exports was set up in July 1984. A non-profit company registered underthe Indian Companies Act, 1956, the Council functions under the Ministry of Commerce, Government of India. The Council is entrusted with export promotion activities and overall development of the Indianleather industry. The Councils activities also include promoting Foreign Direct Investments and Joint Ventures in the Indian leather industry. The CLE serves as a bridge between Indian leather exporters and buyers all over theworld. Council for Leather. (WWW.FIBRE2 FASHION.COM)CSRWelfare of the neighbouring communitiesResettlement of War VictimsDonations to Prime Ministers Relief Fund are made through district administration from time to timeFlag Day, on every Dec 7th, is celebrated by extending generous financial contribution to the Armed Forces Welfare Fund.Ex-Servicemen are offered resettlement opportunities. Till now around 200 ex-service personnel have been offered job opportunities in the factories and other locations as regular employees or as security personnel.Army Wives Welfare connectedness is helped through generous donations, distribution of sewing machines and their felicitation at various occasions.Financial aid provided to meet the vocational training needs of war widows and Kargil war victims.Resettlement of War VictimsBlankets are distributed to the poor during extreme winter conditionsTemporary shelter is extended to the needy, poor and those displaced due to natural cal amities.Financial assistance is offered regularly to Kusht Niyanthran and NinmoolanCentre at 11,KnowledgePark, Greater Noida.Blood Donation Camp was organized at the unit premises, where employees and the coachs donated blood for noble cause.Environmental PreservationEnvironmental circumspection System has been implemented in the factory and awareness towards environmental protection is spread to the locals. The unit has been certified as ISO 140012004Encouraged and promoted Ganga Cleaning Abhyas to ensure clean drinking water and to reduce pollution.Pioneer in setting up an in-house Effluent Treatment Plant at the Tannery.World Environment Day vanguard Mahotsav observed every year and workers and management jointly plant trees at various locations.All DG sets have been replaced with Eco-friendly ones. All vehicles are being replaced with CNG vehicles in a phased manner.Corporate Social Responsibility( Annual Report 2007-08)The Company also attempted to leave a mark as a social ly responsible corporate citizen, by taking all meaningful measures to enrich the environment and the people all around, especially the backward and economically weaker sections of the society.The Company is fully aware of its responsibilities towards areas like Human Rights, Business Ethics, Corporate Contributions, Environmental Policies, Community Development and Work Place issues. (WWW.MIRZA. CO.IN/ IN CORPORATE RESPONSIBILITY, 2008)COPORATE GOVERNANCEYour company is connected to good governance practices that create long term sustainable shareholder value. Keeping in view of the Companys size, global operations and corporate traditions, the board of askor lays strong emphasis on transparency, accountability and integrity. A separate report on Corporate Governance together with a certificate from Statutory Auditors positivist compliance with corporate governance requirement as stipulated in Clause 49 of the listing agreement with the stock exchange has been annexed as part o f this report. caution DISCUSSION AND ANALYSISIndustry Structure and DevelopmentLeather Industry in India has come a long way over the last four-spot decades. From a resource based industry supplying abundant Indian raw hides in semi-finished and finished state, it is now a major supplier of value added finished goods like footwear, bags travel accessories, harness saddlery and fashion accessories like belts and wallets. From the status of exporter of raw hides semi-finished leather, the country has now turned into a major importer of these goods. With a high employment potential leather industry has always been on the priority list of government. Planning. The present Government has placed the development of this industry on a yet higher(prenominal) priority and has formulated a scheme of setting up leather parks across the country. The industry, therefore, will witness deepen growth over the coming years. The export of leather and leather products for the first nine calendar months of 2007-08 i.e. April-December 2007 touched US$ 2485.58 million a g a i n s t t h e p e r fo r ma n c e o f US $ 2258 .81 million in t h e corresponding period of last year, registering a positive growth of 10.4% in Dollar terms. In rupee terms the export touched Rs. 100435.54 million against the previous year performance of Rs. 103021.12 million showing a decline of 2.51%. Export of footwear (leather, footwear components non leather footwear) has increased from US$ 871.92 million in April-December, 2006 to US$ 1023.31 million in April-December, 2007, registering a growth of 17.36%.Opportunities, Threats, essays ConcernsThe pressure on China to strengthen its currency presents a historical opportunity to all Indian exporters who face stiff competition from cheap Chinese products. Your company is no exception. It expects a sustained growth of demand for its products from global customers in the forthcoming years.Global hardening of crude crude oil price has led to a sharp escalation in cost of several raw materials. Oil prices in India were held back by the Government but will rise sharply in prospective. This would have involve on cost of power and fuel, inland transportation, air and sea freight and also an all round increase in costs in the economy. This will pose fresh gainsays for your company. A high degree of volatility has characterized the currency markets throughout the last year and the same is expected to continue in future. such sharp volatility brings along with it, a high degree of uncertainty. In such a scenario, currency risk management is another major challenge before the company.OutlookDespite the above challenges the outlook for your company is bright with surging demand for its products. Increased capacities will bring economies of scale. The increase in oil prices has weakened the Indian rupee and the company will be a beneficiary of the same.Segment-wise PerformanceThe companys business segment is primarily Shoe Division a nd Tannery Division. During the year under review, the Shoe Division revenue was Rs. 283.35 Crores and Tannery Division revenue was Rs. 97.30 Crores.Internal Control System and their AdequacyThe Company has a well established fabric of internal controls in operation, including suitable monitoring procedures and self assessment exercises. An independent Internal Audit function reviews the Companys financial and operating controls at various locations.The companys Risk counseling frame work ensures compliance with the provisions of Clause 49 of the Listing Agreement. Senior Management has ownership of key risks, their management and mitigation plans. The Board, through the Audit Committee, headed by a non-executive independent director, reviews the key risks, the internal control framework and the audit findings.Discussions of financial were almost at the same level as last year. However, profitability of the company has suffered due to increase in cost of all major input items, inc rease in interest rates, lower value realization on account of stronger rupee. Management is continuously honing competencies to improve the range and designs of our product by making substantial investments for scaling up the capacities to achieve higher profitability. Human Resources Human Resources forms an integral part of your Companys strategy for growth. On the Industrial Relations front, your company continued to enjoy a cordially and harmonious dealings with its employees and Unions. Your company had a staff strength of 1860 employees as on 31st March, 2008.Your company is a blue chip footwear company, certified for ISO-90012000 (Quality Management System), ISO-140012004 (Environmental Management System) and SA-80002001 (Social Accountability Management System), equipped with Labs accredited SATRA Technology Centre (UK) and accorded Associate Membership by Foot Wear Design Development Institute (Ministry of Commerce Industry, Government of India).Corporate Social Respons ibilityYour Company also attempted to leave a mark as a socially responsible corporate citizen, by taking all meaningful measures to enrich the environment and the people all around, speciallythe backward and economically weaker sections of the society. Your Company is fully aware of its responsibilities towards areas like Human Rights, Business Ethics, Corporate contributions, Environmental Policies, Community Development and Work Place issues.MIRZA INTERNATIONALVALUESHigh-end, fully integrated rather shoe manufacturing facilities crack considerable cost advantage and international quality. Its Competitive advantage owing to companys established premium brands and knowledge of Indian consumers. Its a growing network of exclusive company-owned and franchised stores for selling companys products. Superior technological capabilities backed by a pool of highly skilled designers and extensive distribution network.SWOTStrengthsHigh Growth lay out availability of highly skilled and chea p manpowerLarge raw material basePolicy initiatives taken by the GovernmentCapability to receive new technologies and handle large projectsContinuous emphasis on product development and design up gradationWeaknessesLack of warehousing support from the governmentInternational price fluctuationHuge labour force resulting in high labour chargesLack of strong presence in the global fashion marketUnawareness of international standards by many playersOpportunitiesRising potential in the domestic marketGrowing fashion consciousness globally aim of information technology and decision support software to help eliminate the length of the production cycle for different productsUse of e-commerce in direct marketingThreatsMajor part of the industry is unorganisedLimited scope for mobilising funds through private placements and public issues (many businesses are family-owned)Difficulty in obtaining bank loans resulting in high cost of private borrowingStricter international standardsHigh competi tion from East European countries and other Asian countries. Lack of communication facilities and skillsPESTEL ANALYSIS policy-makingHome market lobbying/pressure groupsVery few sporting events apart from taking stars like SALMAN KHAN, to attract customers.Economica. Marginal share of 2.44 percent in global trade worth US$ 97.606 billion.b. Estimated target of 12 bn $ (7bn $ export + 5 bn $ domestic) trade by the year 2012 overseas economies and trends.c. The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011. Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07.d. Growing middle class and growing buyer power leading customers to look for branded shoes.e. Seasonality issues sports is more of a rage in summers.f. Lack of targeting of market segments for kids and women.SocialLifestyle trends upward shift demographicsConsumer attitudes and opinions changing favourably to wards branded shoesMedia viewsConsumer buying patterns fashion and social function modelsbuying access and trends advertising and publicityTechnologicalCompeting technology developmentIndia offers benefits like low cost of production, abundant raw material, and a huge function marketResearch funding in design and requirementsManufacturing maturity and capacityInformation and communicationsConsumer buying mechanisms/technologyInnovation potential technology access, licensing, patentsFDI (foreign direct investment)Red tape affecting FDI New Delhi an investor unfriendly regulatory framework and high levels of red tape have been identified as the major roadblocks in the path of FDI inflows into India, according to a study. and its no wonder that only 40 per cent of the total $74.29 billion FDI approved for the country has made its way to the execution of instrument stage. in comparison, china attracts over $40 billion FDI per annum, while a majority of the 385 multinational firms feel that India is a robust market with huge potential, convey to more profitable operations here than elsewhere, the regulatory frameworks and ground-level hassles act as the biggest disadvantages, according to the FICCI FDI survey 2002. Further, the unfriendly tax regime, labour laws and procedural delays in project implementation were the other factors hampering FDI inflow but India now seems determined to change it all. an inter ministerial citizens committee is likely to submit its report next month suggesting measures to simplify multiple clearances and revamping the structure of to boost Fdi. the committee, chaired by the industry secretary v Govindrajan, is examining all existing procedures for investment approvals and implementation of projects, official sources said the committee would suggest measures to simplify and expedite the process for both public and private investment. The main objective would be to hasten the process of clearance as also to improve the quality of t he FDI. meanwhile, 57 per cent of the participants in FICCIS survey dubbed India as a bad investment destination when compared to other global counterparts. over 70 per cent of the companies cited political stability as a critical factor for inviting fdi in future. while manpower was not a concern for overseas firms, 76 per cent of the respondents felt that ground level hassles need to be improved for luring foreign investors ( time OF INDIA. INDIA TIME).Infrastructure, red tape bottlenecks to FDI FICCI surveyWith India emerging as a prefer destination, foreign investors have shown strong concern over the state of infrastructure facilities and procedural delays in the country. According to the FICCI FDI Survey 2010, nearly 70% of firms have rated efforts made by the government for providing standardised investment information and proactive marketing of to attract foreign direct investment (FDI) as average.While 86% of the respondents have expressed dissatisfaction with regard to qu ality and quantity of power made available to them, about 75% have rated the quality of roads and highways in the country as bad and 68% have complained about availability of water for their operations, the survey said Overall, FDI inflows to the developing world continues to Overwhelmingly concentrated in middle-income countries, with Brazil, Russia, India, and China (BRIC) wholly absorbing about half, the report said. (HT CORRESPONDENT HINDUSTAN TIMES, NEW DELHI, 12TH DEC 2012)REFLECTIONAs I am a customer of RED TAPE SO , learnt lot from the company about the globalization its factor and main issue that have raise the company to its peak point and I am very much influenced by the CSR activities that company has done in the past to adequate its preference in the country in the field of leather as many industry follows its quality of opportunities and strength to overcome other company in their sector ,this company have many positive trend for the future prospect in the global worl d.Top most management of RED TAPE is dealing the company in a positive way and make customer and employee feel happy .It also done social programme for the welfare of war victim by providing all the thing that is required by them.There are some good and bad cheek of all the process .so, red tape also have some badaspect but the well establish company fluently and smoothly over come the problem and by the correct corporate governance of governing body.At last i am very much influence by the dealing manner of the top management, CSR activities, strength and opportunities that combines to make a Company to give its best in every sector and make a company to reach its peak point.CONCLUSIONThe small firms have very limited financial capability to introduce environmentally friendly technologies and production methods.The technology used by Indian leather firms is, by and large, outdated and inefficient. Their environmental performance is poor. They do not use environmentally friendly tec hnologies and produce large amounts of effluent with a high load of pollutant. They also have limited capacity to dole out effluent, and in many cases these facilities are not effective.Our case studies of tanneries of RED TAPE areas indicate that show that the keep upion of new technology by firms has three important motives. These are a) a need to meet the environmental standards in the importing countries b) a need to comply with the environmental regulations in India and a need to improve productivity c) The efficient use of raw materials, water, chemicals and power all of which will have positive environmental impact) has not been an important objective of technical change.We also find that strict enforcement of environmental regulations and the availability of financial support at concessional terms are considered by the firms to be important factors which will motivate them to adopt environmentally friendly production methods.Finally, it is unlikely that Indian firms will b e able to create a niche in the international market by exporting leather produced through environmentally friendly production processes in the near future. As shown by the study, the processes used by most Indian exporters are not environmentally friendly. Furthermore, they are not in a position to acquire eco labeling, as most of them do not receive consent from the contaminant Board. We feel that the strict enforcement of environmental regulations and the provision of financial support meant especially for the adoption of environmentally friendly technologies are essential if firms are to be do to adopt PEST and improve their environmental performance. It is only when these steps are taken that Indian firms will have a realistic chance of emerging as an important exporter of leather goods produced with environmentally friendly production methods.REFERENCES(n.d.). Retrieved from WWW.FIBRE2 FASHION.COM.(2008). Retrieved from WWW.MIRZA. CO.IN/ IN CORPORATE RESPONSIBILITY.DION GLOB AL SOLUTIONS LTD. (n.d.).HT CORRESPONDENT HINDUSTAN TIMES, NEW DELHI. (12TH DEC 2012).MIRZA INTERNATIONAL. (28TH FEB 2007). ECONOMIC TIMES . INDIA TIMES .COM.MIRZA INTERNATIONAL LTD. (2007).TIMES OF INDIA. INDIA TIME. (n.d.).