Emerging Business Forum – Footwear Industry in Agra

- Contributed by Kanak Dutta

Zee Business along with Milagrow Business and Knowledge Solutions presents ‘Emerging Business Forum’- an exclusive 10 city initiative that aims to enable and empower SME clusters to achieve sustainable development and growth. A buoyant India today is witness to many successes of small and medium enterprise. Their role in terms of employment creation, upholding the entrepreneurial spirit and innovation has been crucial in fostering competitiveness in the Indian business and economy.
Beginning December 17th 2008 (Agra), this forum is in the format of panel discussion which would be continued across ten important cities which includes Agra, Ahmadabad, Delhi, Jaipur, Indore, Ludhiana, Merrut, Moradabad, Pune and Tirupur. The forum was first initiated in Agra which is known for Taj Mahal world over and has an enormous leather industry. This city is catering to the huge demand of footwear in the country.

From Milagrow, Kavita Joshi(Knowledge Mentor) and myself were appointed to attend the forum. The main objective was to network with SMEs in Agra and spread the awareness about the Milagrow services among the entrepreneurs. We wanted to understand their problems and try to explore how we could contribute to solving them. A short questionnaire was prepared by me to investigate the hindrances companies have been facing with regards to the smooth running of their business (like taxation, export, economic recession, association benefits etc).

The panel members included Kavita Joshi- Knowledge Partner, Milagrow Business and Knowledge Solutions, Gurgaon, S N Ganguly- Director, Central Footwear Training Institute, Agra, Shiraz Ahmad Farooqui- Vice President Marketing, Indiamart.com, Noida, Sharad Sharma- General Manager(Network-2), State Bank of India, New Delhi, Capt A S Rana- President, Agra Footwear Manufacturers and Exporters Chambers, Agra, Opinder Singh Chhatwal, President, President, Agra Shoe Manufacturers Association.

The panel focussed on crystallizing concerns, identifying and addressing local environment as well as eco systems issues, Propose financing strategies for competitiveness in the global economy, Facilitate regional hubs to imbibe quality management processes and IT innovation for business growth, Building a unique setting for engagement and exchange of ideas, Taxation Issues, Availability of Skilled Labour , Use of Internet Marketing.

Attendees of this forum were mainly the manufacturers and exporters of leather in Agra who have already established their business but due to various obstacles, are not satisfied.
Kavita Joshi discussed about the overview of the footwear industry, problems faced by the footwear industry and recent initiatives taken by the government. She also discussed as to how Milagrow can play an important role in enabling and empowering SME clusters to achieve sustainable development and growth.

Agra Footwear cluster is a prime example of a rooted low-tech cluster with predominantly small producers. The cluster has predominantly small scale of operations & the industry thrives on footwear making artisans/skilled workforce available in plenty in the cluster, but suffers from acute shortage of managerial and supervisory staff with technical qualifications. Footwear in Agra is a very labour intensive industry and almost no mechanization exists.

Problems faced by the industry are similar to those faced by many small scale clusters:
• Chinese footwear

• Labour shortage

• Technology

• Current status of Information communication & technology

• Taxation issues

• Weak Dollars

• Spiralling input cost

Now the question arises as to how Milagrow can be of any support?

As “consultants” for Small and Medium Enterprises, Milagrow plays an important role in providing the right solutions (“not just ideas, execution also”). Our mission only clarifies that we partner with aspiring enterprises as a Venture Catalyst and build best-in-class managerial and organizational capabilities in them. There may be various measures by which we can help the SME Cluster in growing their business.
• Understanding the business and working along with the footwear companies as partners in their growth.

• Doing a comprehensive cluster research study on the loopholes present in the system and giving the remedial measures to overcome.

• Milagrow can also help in arranging the funds required by SME in the smooth running of the business.

• Help in screening for the best manpower for managerial and supervisory work with technical qualifications.

• Provide a cost effective and best mailing solutions service.

Before signing off, I would like throw some light on the response which we got after the discussion was over. After Kavita gave a wonderful insight into the world of Milagrow, the audience (entrepreneurs) started approaching us even before the networking session could begin. These entrepreneurs had various questions to ask - for instance, how to market their product, expand their sales across territories etc. At one point of time, there was a queue waiting to be attended by Milagrow team. I am sure that Milagrow has the answers to all their doubts. This was just the beginning and we hope to make a significant impact on the cluster in the near future.

There were many entrepreneurs coming from different parts of business. As an SME, I understand the passion and ambition of today's entrepreneurs, and through this initiative we were successful in reaching out to our target audiences. I felt as if our mission was accomplished. Thanks to Kavita Joshi and Milagrow for such a wonderful experience.