JEDDAH, 16 March 2008 — An Indian safety shoemaker says streamlined Saudi regulations are making a planned factory here a safe bet for the company.
Mukhtarul Amin, chairman and managing director of Superhouse Ltd., credited the Saudi Arabian General Investment Authority (SAGIA) with improved licensing procedures that prompted his company to plan a factory here that will manufacture Allen Cooper brand footwear, from rugged ANSI-approved safety shoes to the latest Italian designs.
“This will be a huge investment on our part in the Kingdom,” Amin told Arab News. “We have a substantial presence here. We are very strong in this country because we sell a good quantity of products. Since we already have a fair share of this market, with our own factory, we will be better positioned.”
With the construction sector sizzling across the GCC, the investment makes good sense as all those laborers require safety shoes, but Amin’s plans go further. “We will also be manufacturing fashion footwear, casual and the sandals,” he said. “This market is good for fancy footwear.”
Amin’s $70-million conglomerate, composed of 15 manufacturing units making shoes along with leather garments, luggage, handbags and wallets, will have a unique position in the GCC market.
“Once we have manufacturing facilities over here, we will have a huge advantage,” Amin said. “Because we have been here for a long time, we know this market pretty well. If we have a manufacturing base here then it will give us a lot of advantages. When your factory is not located in the market then you have lot of difficulties. It takes a lot of time to deliver what the market needs. We will now have better follow-up with our customers. If we have to change a design at short notice, we can do that.”
Under the new SAGIA rules, foreign investors no longer are required to have Saudi partners. “It is 100 percent owned by us,” Amin told Arab News. “Most of the labor will be brought from India, but the factory itself is not labor intensive. It is all automated machinery from Italy. We are excited. In five years’ time, we expect to gain 15-20 percent of the market share.”
Amin has substantial stakes in the Delhi Public Schools in Riyadh and Jeddah. He is the vice-chairman of India’s Delhi Public School.
Superhouse Ltd. is based in Unnao in India’s Uttar Pradesh. Established in 1975, its annual sales are more than $50 million around the globe. The company has more than 3,000 employees and a presence in 35 countries. It also has achieved ISO 9002 certification.
