Paragon group has drawn up Rs.200-crore expansion plan to increase its market share and revenue.
The expansion plan calls for setting up three new manufacturing units in Kottayam, Bangalore and Maharashtra.
Currently, the company has 25 manufacturing plants located in Bangalore (12 units), Kottayam (4), Salem and Ambur (4) and Hyderabad (4) and Vijayawada. The leading footwear manufacturer in the organised rubber footwear sector also outsources production of footwear.
Talking to The Hindu , the company’s Co-founder and Director Navin Thomas said: “We are a leading player in all these states. We are investing Rs.100 crore in Maharashtra unit, followed by Rs.50 crore each in Kottayam and Bangalore. The investments are being made to take the company to the next level of growth.”
According to him, the company sold 12 crore pairs per day and the addition of two new plants would increase the total volume by 10 per cent.
“All our units in Bangalore are spread over two acres and the current facilities also will be of same size. Kottayam and Bangalore units will be up and running within the next six months. It will be a big unit in Maharashtra. We are yet to acquire the land. It may take some more time to materialise,” he said.
Last year, Paragon Footwear clocked a sales revenue of Rs.1,375 crore. This year it is targeting Rs.1,600 crore.
Rubber footwear products accounted for 40 per cent of sales and the rest from poly-urethane, poly vinyl chloride, ethylene-vinyl acetate and thermo plastic rubber soles. With the help of its R&D team, the company had developed 200 designs.
