Success of Cheyyer SEZ attributed to proactive support of the government

Feng Tay Enterprises Co. Ltd. plans to expand their investments

Feng Tay Enterprises Co. Ltd. Taiwan primarily produces and sells athletic shoes in Taiwan and internationally. This company was founded in 1971 and is headquartered in Douliu City, Taiwan. In an increasingly competitive sports shoe manufacturing industry, Feng Tay steadily expanded its production capacity while introducing advanced European techniques into its production processes. Production quality was upgraded, technical expertise elevated, and manufacturing cost lowered, all of which resulted in the establishment of a strategic partnership with major customer NIKE in 1979.

Feng Tay Group’s headquarters in Taiwan serve as a base for exploration in technological innovation and business operation, while its manufacturing base and other operations have expanded to include factories in China, Indonesia, Vietnam and India, and the retail business of brand name shoes and daily supplies in Taiwan and China. Today, it is one of the largest manufacturers of sports shoes globally with an annual turnover of over NT$ 55.00 billion.

Growth Link Overseas Company Ltd., having its Registered Office in Hong Kong, a subsidiary of Taiwan based Feng Tay Enterprises Company Ltd. decided to set up a Special Economic Zone (SEZ) for Footwear in India and conducted a detailed evaluation of various sites all over India. Based on this study and discussions with Guidance bureau and Industries department of Government of Tamil Nadu, Growth Link chose Tamil Nadu mainly because of the following factors:

  • Large talented and skilled manpower availability and peaceful industrial climate
  • Ready availability of large parcel of land (275 acres) for setting up a Footwear SEZ
  • Good infrastructure availability and
  • Strong support from Government of Tamil Nadu in terms of land, infrastructure, fiscal incentives and
  • Effective Single window facilitation support through Guidance Bureau.

Growth Link Overseas Company Ltd., signed a Memorandum of Understanding with Government on 19.09.2006 incorporating the obligations of the Company for implementing a Footwear SEZ called Cheyyer SEZ Developers (CSD) in Cheyyer near Kanchipuram, Tamil Nadu with an investment of Rs. 300 crores in eligible fixed assets and provision of direct employment for 5000 persons within a period of 5 years from the date of MoU. As against this commitment, Growth-Link and its subsidiaries have invested a total of Rs.550 Crores and direct employment of more than 15000 employees in the Cheyyer SEZ region. More than 75% of the employees are unskilled women from rural areas with no vocational training before employment. Growth Link and its subsidiaries have set up a training centre and trained them in various operations of footwear manufacturing. Hence, the projects of Growth Link and its subsidiaries have immensely benefitted the neighbourhood villages by improving the income levels. Also, Growth Link and its subsidiaries have undertaken a number of Corporate Social Responsibility (CSR) initiatives in terms of skill development, rural water supply, improvement of infrastructure facilities in schools, etc. At present, this CSD is the largest exporter of sports shoes in India with an export of over 7.0 million sports shoes pairs.

Encouraged by the success of the present operations in Cheyyer SEZ and the support of Government of Tamil Nadu, Growth Link has proposed to make additional investments as follows:

1. Additional investment of Rs.100 crores in Cheyyer and provide employment to 5000 persons additionally and

2. Establish another project in SIPCOT Bargur Industrial park in an area of 146 acres in SEZ format with an investment of INR 360 crores that will provide employment to 10,000 persons.

On completion of these expansion projects in Tamil Nadu, Feng Tay and its subsidiary companies would be employing over 30,000 persons in Tamil Nadu and would have invested over INR 1000 crores. Hence, Feng Tay, Taiwan will have its largest facilities in Tamil Nadu. Also, Feng Tay and its subsidiaries will be the single largest employer in Private sector in Tamil Nadu.

The above success of Feng Tay group in Tamil Nadu is due to the strong and positive support which Feng Tay received from the Government of Tamil Nadu particularly through Guidance Bureau and SIPCOT which encouraged them to invest again and again in Tamil Nadu.

Sept 2015

Global Investors

Chennai Trade Centre, Chennai, Tamil Nadu, India
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