Click to play videoChennai: Peter Nickerson, director at Hong Kong based Growth-link Overseas Company, Nike's largest O-E-M, will make Nike shoes in India.
He has told Tamil Nadu Chief Minister, M Karunanidhi, that his company and its suppliers would like to set up a Special Economic Zone (SEZ) in the state to make footwear.
"We expect that some time at the end of 2007 or at the begininng of the year 2008 we will begin production of various types of athletic footwear. Our scale will be to employ about 5,000 people in the first three-five years and then later on upto 15,000 people," says Nickerson.
Most large shoe makers outsource their products to companies like Growth-link. They have facilities in countries like Indonesia, Taiwan and Vietnam where cost of production is relatively low.
Growth-link chose Chennai for two reasons:
"The first reason is that it is a great geographical location for world markets and the second reason is that there is a wonderful port in Chennai," says Nickerson.
The company has apparently been granted in-principle 275 acres for the SEZ. It can acquire 225 acres more subsequently.
Initially it will make 2 lakh pairs of shoes a month, all for export. In five years, it intends to make 10 lakh pairs - a long leap in a short time.
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