India is the second largest footwear producer in the world, with footwear production accounting

for approximately 9 per cent of the global annual production – 22 billion pairs as compared to
China, which produces over 60 per cent of the global production.

India annually produces 2.1 billion pairs of which 90 per cent are consumed internally while
remaining are exported primarily to European nations which include United Kingdom, Germany,
USA, Italy and France, as per market analysts.

Footwear exports from India have grown at a CAGR of 20 per cent in Indian Rupee terms during
the last five year backed by growing demand from European nations and increasing focus of main
importing countries to shift sourcing from China to other low cost producing countries.

India is the third largest footwear consuming country in the world after China and USA, but with
very little separating the three, India is very soon expected to be the second largest consumer as
well.

In absolute terms, footwear exports from India have risen from Rs. 71.5 billion in FY10 to Rs.
180.0 billion in FY15.
The growth in Indian fashion and lifestyle market has given an impetus to the footwear industry
as well. From a basic need-based industry, it has become an evolving fashion and style category.

Market Size, Growth & Segmentation

As per the India Retail Report, India’s total retail market is worth Rs 33,592 crore, growing at
18 per cent and is expected to cross Rs 54,000 crores by 2017. Modern retail is estimated at 42 per
cent of this total market and is expected to grow by 21-23 per cent Y-o-Y. Retail expansion grew
at an average of 16-18 per cent in terms of number of outlets and retail space with same outlet
growth being around 25 per cent.

The footwear market in India, like its international counterpart, has always been broadly classified
into three segments, Men’s, Women’s and Kids. Men’s market is growing at a CAGR of 10 per
cent. At present, men’s market contributes around 60 per cent of sales in the footwear segment
as against women’s share of 30 per cent. The women’s segment, however, is growing at a much
faster CAGR of 20 per cent.

Based on the usage, the market can be divided into two sub categories:
  Regular (consisting of daily and sports footwear, material can be leather/non-leather)
 Occasional (consisting of premium and luxury, material can be leather/non-leather)
From price point, the footwear industry in India can be divided into five parts:

 Mass (Rs 150-700)

 Mid/Economy (Rs 700-1000)
 Active Sports (Rs 1000-3000)
 Premium (Rs 3000-5000)
 Luxury (Above Rs 10,000) segment
The footwear market of the country is shared between organised and unorganised segment. The
organised segment caters to about 1/3rd of the market while the remaining market is fetched by
unorganised players.

The unorganised segment gains prominence in the Indian context due to its price-competitive
products, which are more suitable and attractive to the price conscious Indian consumer. But with
increased household income, shifting consumer behaviour from saving to spending, increasing
brand consciousness amongst Indian consumers, influx of large number of global brands and
penetration in tier – II and III cities by footwear companies, the organised retail in footwear market
is rapidly evolving and expected to grow at a higher rate in the future.

The rural market of India is still largely untapped for footwear manufacturers. Companies are re-
positioning themselves and launching specific products and price ranges to expand their presence
and increase their consumer base in rural areas.
The Evolution of the Indian Footwear Market

“As consumers’ exposure to multi-channels on TV, movies, content increased over years, their
expectation from footwear have evolved. Buying shoes for special occasions started becoming a
norm. Advent of digital technologies and penetration of smartphones brings instant awareness for
Indian consumers about the latest global trends and makes them aspire for the latest. Footwear is
not just for utility anymore; they are more of a fashion statement. This has increased the per capita
consumption from 1.6 to 2.4 in last 5 years. The market is also likely to gain from the proliferation
of the retail culture, which is expected to boost it at a CAGR of 11 per cent between 2015 and
2023. Since the global footwear market is highly fragmented, the focus now lies in diversifying
the product portfolio through research and development to meet the changing customer needs.”

“The industry is at a very interesting crossroad. The demography and changing buying behavior
are triggering enhanced demand from the existing pie. Rising disposable incomes and new entrants
into workforce, especially women are pushing the domestic demand on the upside. On the other
hand, the pain points of the industry – tax component and incentives on investor allowance are
being worked upon. The organized sector will tend to be big beneficiary of these trends”.
“India is witnessing a change in terms of its basic aspiration that has seen the buyer’s preference
move to more of branded stuff. More international players will enter the market and they will offer
a wide variety to the consumer. All these are way different when we started out when it was a basic
need that this industry fulfilled.”

90 per cent of the footwear produce of India is still consumed by the domestic market and the rest
is exported.

“Indian footwear industry is exploring ways to increase exports and the growth in export of
footwear will depend on quality and cost competitiveness”.

India is attracting various established fashion brands of the world as well as retailers who are re-
orienting their focus on the domestic footwear market. This has led to a significant increase in the
number of retail outlets nationwide.

Key Trends Shaping the Indian Footwear Market

 Casualization and the Growth of Sports Shoes: “The surging demand for designer
yet comfortable shoes among women and sportswear or athletic shoes among men, have
been bolstering opportunities for footwear sales.”
It is true that, the choice of footwear, both for men and women in India is always dominated by
the fashion of the season. However recently, comfort has been the determining factor for the
consumers in buying footwear. Casualization has kicked in as a big trend and with that sales of
sneakers, converse also have picked up, as these are preferred for everyday wear. In fact, heels
over three inches, most favourite in women’s segment, have recorded a decline of 17 per cent since
last September.

Liberty in India

Liberty Shoes Limited (LSL) is an Indian shoe company, based in Karnal, Haryana.

Established in 1954, the company presently produces 50,000 pairs of footwear a day through its
six manufacturing units, sold through 6,000 multi-brand outlets and 350 exclusive showrooms,
and has a presence in 25 countries, with 50 showrooms outside India. Adesh Gupta became the
CEO of LSL on 16 July 2001

Liberty Shoes was founded by Dharam Pal Gupta, Purshotam Das Gupta and Rajkumar Bansal by
the name of Pal Boot House in 1954. Liberty Shoes first associated in India for distribution and
exclusive showrooms with Balbir Singh & Son's in the year of 1983, which was later named as
Naruson Sales Corporation.

The company was incorporated on 3 September, 1986 as a Public Limited Company and obtained
the Certificate of Commencement of Business on 11 March 1988. The company has been set up
to manufacture and sell leather and non leather shoes, leather shoe uppers and leather garments
Presently the company is engaged in the manufacturing of leather and non leather shoes.

It has also set up a joint venture in Russia to manufacture shoes in 1991 under the name of M/S
Liberty &Go, with M/S Gorky Production & shoes Unit,Gorky. The Company is marketing its
product nationally and internationally under the brand name "LIBERTY" and is well established
in the national and international market. The company has entered into an agreement with one of
the group firms M/S Liberty Enterprises for using the established brand name "LIBERTY".

The company has commenced its commercial production for non leather shoes on 25 December
1993. Initially one direct injection soiling machine was installed with a capacity of 50000 pairs
per annum on single shift basis .The second direct injection soiling machine was installed in March
94.From the commencement of commercial production till 31 March 1994,the company has been
operating on full capacity.As the promoters ar in this line for the last five decades, the company is
confident of maintaining this level of operations in the future.The company has been promoted by
P.D.Gupta and R.K.Bansal and belongs to the LIBERTY Group .Liberty Group has completed
Five decades of its existence in the shoe industry in 1994.

'Force 10', Liberty's first sub-brand, was launched in August 1990, a time when a casual footwear
wave sweeping the Indian market. By 1994-95, Force 10 became Liberty's flagship brand in value,
notching up sales of Rs 32 crore, it the coming years, it not only help the company establish its
name the domestic footwear market, but also paved the way for nine other sub-brands and a firm
foothold the mass family footwear segment, till now led by Bata, now Liberty was the country's
second largest footwear company after it.
The company saw major expansion in the 2000s, both in retail and manufacturing bases, leading
to a sharp growth, in the year 2002-03, the company posted a retail turnover of Rs 400 crore. Also
in April 2003, the Liberty Group underwent an important restructuring and its product portfolio
was also revamped. As a part of the restructuring process, the company split its manufacturing and
retail business in January 2004, with Liberty Shoes as the holding company for its shoe business
and a subsidiary Liberty Retail Revolution Ltd for its retail business, which established a new retail
channel through "Revolutions Stores", which were set up in Mumbai, Kolkata, Hyderabad and
Chennai. At the same time it ventured into high fashion, by tying up with fashion designers
including Rohit Bal, Rajesh Pratap Singh, Rina Dhaka, Rohit Gandhi, Ashish Soni and Suneet
Verma to develop footwear to match their clothing lines.

LSL produces more than 50,000 pairs of footwear a day covering virtually every age group and
income category. Products are marketed across the globe through 150 distributors, 350 exclusive
showrooms and over 6000 multi-brand outlets, and sold in thousands every day in more than 25
countries. After 50 years of its existence, today Liberty produces footwear for the all age groups.
Currently, LSL is headed by Mr. Adesh Gupta as its CEO. It is a part of the 'Liberty Group' which
includes other associate companies - Liberty Retail Revolutions Limited and Liberty Whiteware.

2000

 The Company is to enter into an agreement for sale/purchase of goods and/or taking on
franchise basis the production on franchise basis the production facilities and/or acquire
movable and immovable property including plant and machinery, building etc. with Liberty
Group Marketing Division and/or Liberty Enterprises, partnership firms.
 The Company is all set to venture into the e-commerce activities which will cater to the B2B
and B2C requirements.

2003

 Liberty Footwear has introduced its innovative Liberty Footstylers collection. It is also
unveiling a slew of shoes whose price will range between Rs 1,500 and Rs 2,500, higher than
its other products such as Gliders, Windsor and Senorita. -Pearl Academy inks pact with
Liberty Shoes.
2004

 Liberty Shoes Board approves setting up of Subsidiary Company.

 Mr. Adesh Gupta presently working as Executive Director of the Company since 16 July 2001,
has been elevated as 'Chief Executive Officer' (CEO) of the Company.
 Liberty Shoes Ltd launched its retail format, Revolutions
 Liberty Footwear Company Ltd's claim to use brand name 'Revolution' for its new footwear
retail chain has been challenged by a Delhi-based women's wear chain Revolution Clothings,
which too, has claimed ownership of the same brand name.

2005

 Liberty unveils new range of footwear.

 Liberty Shoes has given the Bonus in the Ratio of 1:1.

2006

 Liberty Shoes joins hand with Pantaloons.

2007

 Liberty Shoes achieved sales of Rs 300 crore last fiscal and has a 30-per cent marketshare in
the branded footwear segment.

2010

 Liberty Shoes Ltd as considered approval for re-appointment of Sh. Adesh Kumar Gupta, Sh.
Adarsh Gupta and Sh. Shammi Bansal as Executive Directors of the company.

2012

 The Company has appointed Sh. Ramesh Chandra Palhan as Additional Director of the
Company with effect from 28 March 2012.

Manufacturing
Liberty's manufacturing base includes six facilities spread across the numerous states, two
in Gharaunda and Liberty Puram (Haryana) where its primary and the largest manufacturing units
are situated, Paonta Sahib, (Himachal Pradesh) with two units and Roorkee (Uttarakhand). The
company has avoided locations in the conventional Indian shoe manufacturing locations such as
Agra, Kanpur, Noida, Chennai etc.

Brands

 FOR MEN: Coolers, Fortune, Force 10, Gliders and Windsor

 FOR WOMEN: Force 10, Gliders, Senorita and Tiptop
 FOR KIDS: Foot fun, Force 10, Gliders, Prefect
 SAFETY SHOES: Freedom, Warrior and Workman