Recruitment Roles of HR Manager

Case of Indian Footwear Industry

30th October, 2009

Report submitted to Director of Asia Graduate School of Business

By AGSB Research Group

Prof. Navin Chandra
Dhrupad Bhatt (Research Associate)
Smita Rao (Information Resources Executive)
 Table of Contents                                                            Pg. No 

Executive Summary ...................................................................................................................... 4 

1.  Indian Footwear Industry ....................................................................................................... 5 

2.  Leading Companies ............................................................................................................... 7 

2.1  Bata India Limited ........................................................................................................... 7 

2.2  Adidas-Salomon AG ....................................................................................................... 7 

2.3  Reebok International Ltd. ............................................................................................... 7 

3.  Current HR Practices in Recruitment ..................................................................................... 9 

3.1  Recruitment Philosophy .................................................................................................. 9 

3.2  Training and Advancement ........................................................................................... 10 

3.3  How Companies Hire? .................................................................................................. 11 

3.4  Focus on Value Addition ............................................................................................... 11 

4.  Changing Nature of Human Resource Management ........................................................... 12 

4.1  Recruitment at Nike ...................................................................................................... 12 

4.2  HR Function at Relaxo Footwear ................................................................................. 13 

5.  Factors affecting Recruitment .............................................................................................. 14 

5.1  Internal Factors ............................................................................................................. 14 

5.2  External Factors to Remember ..................................................................................... 16 

6.  Recent Trends in Recruitment ............................................................................................. 18 

6.1  Outsourcing .................................................................................................................. 18 

6.2  E-Recruitment ............................................................................................................... 18 

6.3  HR Consultants at Alternative Workplaces ................................................................... 19 

7.  Recruitment Planning .......................................................................................................... 20 

8.  Effective organizational structure ......................................................................................... 22 

2
9.  Top Nine Skills To Consider in Recruitment ........................................................................ 23 

9.1  Research and development .......................................................................................... 23 

9.2  Marketing Specialization ............................................................................................... 23 

9.3  Ability to Optimize Cost ................................................................................................ 23 

9.4  Knowledge of SCM and Operations Management ....................................................... 24 

9.5  Negotiating Skills .......................................................................................................... 24 

9.6  Knowledge of Legal and Regulatory Framework .......................................................... 24 

9.7  Technological Proficiency ............................................................................................. 25 

9.8  Design Capabilities ....................................................................................................... 25 

9.9  Knowledge of Mergers and Acquisitions ...................................................................... 25 

10.  Conclusion ....................................................................................................................... 26 

Appendix I ................................................................................................................................... 27 

Bibliography ................................................................................................................................ 30 

3
 Executive Summary 

The Indian Footwear manufacturing sector is a major industry; it ranks second in the world, next

only to China. Owing to the size of the industry, it makes significant contributions to the Indian

economy by way of export income, trade, manufacturing and retail along with the future

potential in terms of national consumption and international demand. More importantly, it also

has the social benefit of providing employment to many people – in the organized sector as well

as the unorganized sector. Keeping this in mind, an attempt has been made to understand the

trends of Recruitment Practices prevalent in the footwear manufacturing industry, especially in

the organized sector in India. Wherever possible, comparative notes have been made with

prominent International footwear manufacturers.

The trend until recent years was to have semi-skilled and unskilled labors in the manufacturing

units – possibly due to lack of competition and the resulting need to not offer the customers

diverse options in terms of footwear choices. However with increasing globalization as well as

customer awareness and demand for more trendy footwear, it has become imperative for the

manufacturers to employ more skilled employees – especially in the ‘shoe design’ section.

Recruitment is also required for other functional departments, which is mostly undertaken

according to prevailing practices.

The role of HR manager has also now grown to focus on training and developing the employees

as well as other concerns like health & safety of workers, conducive work environment etc. The

factors affecting the recruitment practices – both internal and external factors, have been

identified along with some upcoming trends in the recruitment practices. Finally, top skills

relevant for the recruitment purpose have been identified.

4
1. Indian Footwear Industry 

India is a huge domestic market for Footwear Industry, which is largely untapped – especially

for ladies / kids wear. Moreover, with increasing spending power of the youth owing to economic

growth, as well as the changing preferences as influenced by western cultures, the Footwear

Industry is bound to have prominent growth. With low cost of production and ready access to

the raw materials, the industry will also see export oriented growth.

The Indian Footwear Industry can be broadly classified into

i) Footwear Manufacturing Sector and

ii) Footwear Retail Sector

The Footwear Manufacturing Sector is a significant segment associated with the Leather

Industry in India. Some details pertaining to both the Manufacturing and the Retail sector is

discussed as follows.

Footwear Manufacturing Sector:

India ranks second among the footwear producing nations, next only to China. India produces

more footwear for males while the world’s major share of production is in ladies footwear. The

production centers in India are major cities like Chennai, Mumbai, Kanpur, Agra, Delhi as well

as in small towns like Ranipet and Ambur in Tamil Nadu – depending on the type of

manufacture required. The industry is both labor intensive and capital intensive. India’s export of

Footwear touched US $ 1533.66 million in 2008-09, with a share of 42.62% in India’s total

export from the leather sector. India’s export is growing at a CAGR of 13.91% in the last five

years ending 2008-09. Nearly 95% of its production goes to meet its own domestic demand.

More information related to Industry classification, geographic concentration and share of

estimated capacities are shown in Appendix I.

5
Footwear Retail Sector:

y The Indian footwear retail market is expected to grow at a CAGR of over 20% for the

period spanning from 2008 to 2011.

y Footwear is expected to comprise about 60% of the total leather exports by 2011

y Presently, the Indian footwear market is dominated by Men's footwear market that

accounts for nearly 58% of the total Indian footwear retail market.

y By products, the Indian footwear market is dominated by casual footwear market that

makes up for nearly two-third of the total footwear retail market.

y As footwear retailing in India remain focused on men's shoes, there exists a plethora of

opportunities in the exclusive ladies' and kids' footwear segment

y The Indian footwear market scores over other footwear markets as it gives benefits like

low cost of production, abundant raw material, and has huge consumption market.

y The footwear component industry also has enormous opportunity for growth to cater to

increasing production of footwear of various types, both for export and domestic market.

The footwear market consists of the total revenues generated through the sale of all types of

men's, women's and children's shoes. The Indian footwear market generated total revenues of

$4 billion in 2008, an increase of 12% since 2007. Looking forward, the Indian market is forecast

to accelerate its current performance in terms of value, with an anticipated CAGR of 10.1% for

the five-year period 2005-2010 expected to drive the market to a value of $4.4 billion by the end

of 2010.

6
2. Leading Companies 
2.1 Bata India Limited 

Bata India is a manufacturer of footwear. Types of footwear offered by the company include

rubber, canvas, leather and plastic footwear. The company also markets apparel under the

brand names of North Star, Power and Ambassador. Bata India has five manufacturing plants

and acquires its leather from two tanneries in Mokamehghat (Bihar) and Batanagar. It is

headquartered in West Bengal, India. There is no recent financial information available however

for the fiscal year ended December 2004, the company generated revenues of $157.6 million

compared with $153.8 million for 2003.

2.2 Adidas­Salomon AG 

Adidas-Salomon is a worldwide producer of sporting goods and holds a leading position in the

industry. The company is headquartered in Herzogenaurach, Germany. The group markets its

products through Adidas, Salomon, Taylor-Made, Mavic, Bonfire and erima brand names. It has

approximately 100 subsidiaries in Europe, the US and Asia, each focusing on a particular

market or part of the manufacturing process. Its major product line is athletic footwear although

it also makes sportswear and equipment.

For the fiscal year ended December 2005 Adidas-Salomon generated revenues of $8248.3

million, an increase of 13.2% from the previous year’s revenues. Net income was $476.1 million

in fiscal 2005, up 22% over 2004.

2.3 Reebok International Ltd. 

Reebok specializes in the design, marketing and distribution of sports and fitness products

including footwear, apparel and accessories, as well as footwear and apparel for non-athletic

7
use. The company has three main product categories: Rbk, Performance, and Classic. Each of

these product categories features product offerings for both men and women that are designed

for specific consumer groups. Reebok has operations in the UK, Europe and in various Asian

countries. It is headquartered in Canton, Massachusetts. The acquisition of Reebok by Adidas-

Salomon was completed in January 2006.

There are also other prominent names like Rinaldi Designs, Action Footwear Ltd, Liberty

Shoes, Relaxo Footwears Ltd, Nike, etc who are in the same industry.

8
3. Current HR Practices in Recruitment 

The HR Department of a Footwear company strives to align the efforts of recruitment to the

vision of the company. Common vision of such companies is to offer customers the best in

footwear, high in style and quality at the right price with the best and most professional sales

assistance. For this, the companies invest a great deal in human resources, with specially

organized training to bring out those fundamental features such as:

• Technical preparation

• Team work

• Constant drive for the results

• Organizational and managerial capacity

3.1 Recruitment Philosophy 

HR Department at Footwear Manufacturing Companies, meets its customers' needs by

selecting the following attributes in prospective employees.

1) knowledge

2) imagination

3) skills

4) diversity

5) teamwork

6) integrity of people

While recruiting and retaining the best people is going on, HR Department also is guided by the

principles of non-discrimination and respect for human rights and individual freedoms for all

employees.

9
Many companies show commitment to being socially responsible employers and their human

resources programs are driven by this commitment. This includes focusing on issues like child

labor, hygienic work environment, cruelty on animals, etc especially in India where legal

enforcement is not always properly implemented.

Most companies look for honor, education, skill, experience and above all, commitment to the

organization and its success. Some manufacturers with specific customer focus also recruit

people according to their customers’ preferences – e.g. Rinaldi Designs, Mumbai caters only to

ladies footwear – and therefore tends to hire women designers who can identify and relate to

the customer requirements.

3.2 Training and Advancement 

Many companies provide opportunities for personal development and advancement.

They typically do this by:

• Running local courses for training and improving skills

• Organizing several national and international courses at all levels on a regular basis

for teaching new technologies and systems

• Encouraging lifelong learning

Training is also imparted especially if a new employee is hired, without specific background in

the industry. Big manufacturers like Bata, Liberty Shoes, Action Shoes, etc also have to train

their employees in the importance of the appropriate requirement of customers, identifying and

understanding the more than 30 parts of the shoe, as well as the manufacturing process, details

of materials used, the styles of footwear, etc in order to better serve the customers.

10
3.3 How Companies Hire? 

• Merit is the sole criteria for selection

• Attitude is given as much weight-age as functional competencies.

• Panel interviews comprising of Functional Head & HR Head.

• Sources for recruitment are through campus, consultants, employee referrals, internal

job postings and the Internet.

• Antecedent verification is an integral part of the recruitment process.

• Medical fitness is pre-requisite for all positions.

• Equal opportunity employer and non-discrimination on the basis of gender

3.4 Focus on Value Addition 

Many companies focus on value addition to enhance competencies. They believe professional

growth is the responsibility of both the individual and the organization. They provide

opportunities for value addition through:

• Exposure to World Class Manufacturing Facilities and Practices

• Exposure to Internationally Benchmarked Marketing Practices

• Formal Training and Development programs in India and overseas

• Membership of Multidisciplinary Task Forces and Project Teams

• Cross Functional and Cross Business Opportunities

Companies like Nike, Reebok, Adidas, etc add value for the customer by allowing them to

directly participate in the manufacturing process in order to have customized footwear. Other

companies like Rinaldi Designs consistently look out for the changing preferences and trends of

their target market. Companies such as Liberty and Action emphasize the importance of the

footwear in association with customer well-being.

11
4. Changing Nature of Human Resource Management 

The field of HR management is undergoing transition because organizations themselves are

changing. The explosion of information technology has changed the nature of HR information

usage. Just a few years ago, most HR information had to be compiled and maintained on

mainframe computers. Today, many different types of information technology like Human

Resources Information Systems (HRIS) and ERP related HR Modules, are being integrated and

used so that HR professionals can access real-time HR-related data and communicate it to

other managers and executives.

4.1 Recruitment at Nike 

Nike is one example of a company using computer-assisted interviewing. The company has

used an Aspen Tree product to hire employees for Niketowns, retail stores that showcase Nike

products. In one instance, 6,000 people responded to ads for workers needed to fill 250

positions. Nike used IVR technology to make the first cut. Applicants responded to eight

questions over the telephone; 3,500 applicants were screened out because they weren't

available when needed or didn't have retail experience. The rest had a computer-assisted

interview at the store, followed by a personal interview.

The computer interview identified those candidates who had been in customer service

environments, had a passion for sports and would make good Nike customer service

representatives. Interviews were done in batches. The computer interview (which includes a

video showing three scenarios for helping a customer and asks the applicant to choose the best

one) was given every 45 minutes to a group of applicants. As applicants completed the

interview a printer in the next room printed their responses. Areas that needed to be probed

further were flagged, as were areas that indicated particular strengths.

12
While the applicant completed an application form online, the interviewer used the printout to

prepare for the applicant's human interview. Some applicants would be given only a short

interview; other more likely candidates would be interviewed at greater length. The computer not

only helped interviewers screen for people who lost their temper in work situations or who

demonstrated other undesirable behaviors, but it also helped the interviewers to determine what

to ask to reconcile inconsistencies in the computer interview or to probe applicant strengths in

desired areas. Because Nike uses behavioral-based interviewing, applicants must document

their areas of strength with examples from their work. Some applicants were offered jobs on the

spot. Others were called back for second interviews.

4.2 HR Function at Relaxo Footwear  

Another example is Relaxo Footwear, the famous manufacturers of Hawaii Chappals. The HR

function at Relaxo entails the following

Expert Management Team:

The company is empowered by a team of experienced, mature, dynamic and result oriented

professionals with an experience in varied fields of marketing, finance, production, HRD and

administration. It is headed by 6 Directors, a President (operations), 5 GMs and over 30

managers.

Trained workforce:

Relaxo employs over 2500 personnel who are well trained in their respective production

activities including 400 officials spread over all 9 manufacturing units and the corporate office.

Employees are induced to in house training programs and outside workshops sponsored by

leading institutions to broaden their existing working knowledge and experience

13
5. Factors affecting Recruitment  

HR Manager should design the recruitment strategy by understanding whether the Organization

is into Footwear Manufacturing or Footwear Retailing. Some MNC’s like Nike, Adidas, Bata,

Reebok, Rinaldi, etc are both manufacturers as well as retailers – therefore, the recruitment

needs to cater to both the Strategic Business Units as per requirement.

The recruitment function of many footwear organizations is affected and governed by a mix of

various internal and external forces. The internal forces or factors are the factors that are

controlled by the organization. And the external factors are those factors that cannot be

controlled by the organization.

5.1 Internal Factors  

The internal forces that HR Manager should consider are:

A) Recruitment Policy

The recruitment policy of an organization specifies the objectives of recruitment and

provides a framework for implementation of recruitment program. It may involve

organizational system to be developed for implementing recruitment programs and

procedures by filling up vacancies with best qualified people.

Factors Affecting Recruitment Policy:

• Organizational objectives

• Vision and Mission

• Current Requirements

14
• Personnel policies of the organization and its competitors

• Preferred sources of recruitment

• Internal – Promotion, Transfers, Grooming

• External – Consultants, Advertisements, Head Hunting

• Need of the organization

• Recruitment costs and financial implications

B) Human Resource Planning

Effective Human Resource Planning helps in determining the gaps present in the existing

manpower of the organization. It also helps in determining the number of employees to be

recruited and what qualification they must possess. Moreover, a detailed Human Resource

Plan can also help identify the various needs that might arise in the future, providing ample

time to source the same.

C) Size Of The Firm

The size of the firm is an important factor in recruitment process. If the organization is

planning to increase its operations and expand its business, it will think of hiring more

personnel, who can handle its operations. The services of key personnel who have been

with the organization for long can also be considered to foster and cultivate the culture.

Organization must employ or think of employing more personnel if it is expanding its

operations.

D) Cost

Recruitment incurs cost to the employer, therefore, organizations should try to identify a

source of recruitment which will bear a lower cost to the organization for each candidate.

15
5.2 External Factors to Remember 

The external forces are those which cannot be controlled by the organization. The major

external forces are:

A) Supply and Demand

The availability of manpower both within and outside the organization is an important

determinant in the recruitment process. If the company has a demand for more

professionals and there is limited supply in the market for the professionals demanded by

the company, then the company will have to depend upon internal sources by providing

them special training and development programs.

B) Labour Market

Employment conditions in the community where the organization is located will influence the

recruiting efforts of the organization. If there is surplus of manpower at the time of

recruitment, even informal attempts at the time of recruiting like notice boards display of the

requisition or announcement in the meeting etc will attract more than enough applicants.

C) Image / Goodwill

Image of the employer can work as a potential constraint for recruitment. An organization

with positive image and goodwill as an employer finds it easier to attract and retain

employees than an organization with negative image. Image of a company is based on what

organization does and affected by industry.

D) Political-Social-Legal Environment

Various government regulations prohibiting discrimination in hiring and employment have

direct impact on recruitment practices. For example, Government of India has introduced

16
legislation for reservation in employment for scheduled castes, scheduled tribes, physically

handicapped etc. Also, trade unions play important role in recruitment. This restricts

management freedom to select those individuals who it believes would be the best

performers. If the candidate can’t meet criteria stipulated by the union then union regulations

can restrict recruitment sources.

E) Unemployment Rate

One of the factors that influence the availability of applicants is the growth of the economy

(whether economy is growing or not and its rate). When the company is not creating new

jobs, there is often oversupply of qualified labour which in turn leads to unemployment.

F) Competitors

The recruitment policies of the competitors also effect the recruitment function of the

organizations. To face the competition, many a times the organizations have to change their

recruitment policies according to the policies being followed by the competitors.

17
6. Recent Trends in Recruitment 

The following trends are being seen in recruitment:

6.1 Outsourcing 

In India, the HR processes are being outsourced more as outsourcing firms help the

organization by the initial screening of the candidates according to the needs of the

organization. These firms create a suitable pool of talent for the final selection by the

organization. Outsourcing firms develop their human resource pool by employing people for

them and make available personnel to various companies as per their needs. In turn, the

outsourcing firms or the intermediaries charge the organizations for their services.

Advantages of outsourcing are:

• Company need not plan for human resources much in advance.

• Value creation, operational flexibility and competitive advantage

• turning the management's focus to strategic level processes of HRM

• Company is free from salary negotiations, weeding the unsuitable resumes/candidates.

• Company can save a lot of its resources and time

6.2 E­Recruitment 

Many big organizations are using Internet as a source of recruitment. E- recruitment is the use

of technology to assist the recruitment process. They advertise job vacancies through worldwide

web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the

Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by

prospective employees depending upon their requirements.

18
Advantages of this type of recruitment are:

• Low cost.

• No intermediaries

• Reduction in time for recruitment

6.3 HR Consultants at Alternative Workplaces 

Recent trends in HR Recruitment have shown that consultants have come to play a significant

role. These consultants participate not only in the recruitment but also in operations and other

functional departments in the footwear industry. Former employees who have more than 20 –

25 years of experience in the same industry tend to leave their jobs and commence a consulting

business. They conduct one–off projects / assignments, on part time / full time or even seasonal

basis on various aspects like risk assessments, overseas assignments, cost reductions, design

management, sourcing of candidates, etc.

As part of overall efforts to play a leading role in the global trade, the HR Manager in Indian

Footwear industry must focus on key skills in employees such as innovative design, consistent

record in delivering superior quality and effective time management. The HR Department should

invite industry and institutional support in the areas of technological development, design and

product development and human resource development, through premier institutions like:

i) Central Leather Research Institute, Chennai

ii) Footwear Design & Development Institute, Noida

iii) National Institute of Fashion Technology, New Delhi

19
7. Recrruitment  Planning
g 

Figure 1: Recommende
R d Recruitment Planning

1. A tea
am of senior HR mana
agers reaffirm
ms the com
mpany’s obje
ectives and identifies future
f

performa
ance results
s areas critical to the business an
nd strategicc plans of the
t organiza
ation.

Panel grroups are assembled, composed

c o individuals knowledgeable aboutt the jobs in
of n the

companyy. This grou

up can include both high-
h and lo
ow-performin
ng employe
ees, superviisors,

managerrs, trainers, and

a others.

anel members to get specific

2. A facilitator from HR or an outside consultant intervviews the pa

exampless of job be
ehaviors and actual occcurrences on the jobss. During th
he interview
w the

20
individuals are also asked to communicate their thoughts and feelings during each of the

described events.

3. The facilitator then develops detailed descriptions of each of the competencies. This

descriptive phase provides clarity and specifics so that employees, supervisors, managers, and

others in the organization have a clearer understanding of the competencies associated with

jobs.

4. The competencies are rated and levels needed to meet them are identified. Then the

competencies are specified for each of the jobs. After identifying recommendations, the HR

personnel drafts job duties and specifications.

5. Finally, standards of performance are identified and tied to the jobs. Appropriate selection

screening, training, and compensation processes focusing on job specifications must be

developed and implemented. This process should be continuous, and adaptive to the

organizational needs with periodic review of job duties.

21
8. Effective organizational structure 

Employees in general are categorized in the following hierarchy in the Indian Footwear Industry:

Director, senior manager (senior vice president, vice president, general manager), middle

manager, junior manager, selling manager, shop manager, shop employees.

Marketing department is typically divided into four zones. Senior general manager was

responsible for each zone, supported by business development manager and several district

level managers.

Example of Relaxo

Relaxo Footwear commenced operations in 1976. The company is presently empowered by a

team of experienced, mature, dynamic and result oriented professionals with an experience in

varied fields of marketing, finance, HRD, production, administration, etc. It is headed by

directors, President (Operations), General Managers and many functional managers.

The company is also aware of the requirement to train and develop its more than 2500

employees in their respective domains. Employees are required to undergo the in-house

training sessions as well as attend and participate in workshops conducted by external

organizations in order to broaden their horizons.

22
9. Top Nine Skills To Consider in Recruitment 

9.1 Research and development 

The candidate should have skills to focus on key areas of product, process, material

development, footwear moulds, and tannery technology with emphasis on pollution free

environment. This research and detail oriented skills results in breakthrough product with

comfort, wind and flexible technologies.

9.2 Marketing Specialization 

Brand value is one core competency that companies are looking for. For example, Bata India

limited (BIL) created very strong brand value and positioned that name to connect only to shoe

manufacturing company. Bata had 60 % market share in organized sector, which shows the

customer perception about BIL.

Some companies are repositioning in the current markets to be considered away from

manufacturing oriented company. Marketing specialists are in high demand as they are required

to change this image of production oriented company to affordable, market driven, fashion

conscious, lifestyle brand. Among such companies are Bata and Liberty.

9.3 Ability to Optimize Cost  

Companies are looking for competent people who can focus on margin improvement and cost

effectiveness programs to yield results. Companies in losses such as Bata, Relaxo, Adidas and

Action want to clear old merchandize through discount sales, write offs, etc. which will enable

them to focus on improving sales.

23
9.4 Knowledge of SCM and Operations Management 

Prospective employees must have good knowledge of Supply Chain Management and

Operations Management to optimize utilization of production facilities. As part of a new logistics

team, the employees must focus on obtaining specific orders from the market for best selling

designs and sizes. Employee must ensure that all raw materials are available in the factories

well in time so that the Company can produce and place in shops the products that consumers

want. Thus the Company has been focusing on personnel who understand consumers and

market demand which will reduce inventories and improve sales-to-stock turnover.

9.5 Negotiating Skills  

Good negotiating skills are required to deal with various vendors and distributors. Cost

efficiency necessitates negotiation on procurement of raw materials to create finished products.

In this industry, it is also important to optimize transport costs to ensure a competitive cost of the

Company’s products to the sales outlets.

9.6 Knowledge of Legal and Regulatory Framework 

A part of the outsourcing, manufacturing is now routed by many companies from contract

manufacturers based in Himachal Pradesh and Uttaranchal which are both states offering

concessions in excise, sales tax and corporate tax. Companies are also looking at and

negotiating with third party manufacturing facilities in two other tax-free states of Assam and

Jammu and Kashmir.

Therefore the HR Department must look at knowledge of prospective personnel in legal and

regulatory framework of footwear industry in India.

24
9.7 Technological Proficiency 

Knowledge of Enterprise Resource Planning (ERP) such as SAP, Oracle, Baan etc. will also

attract candidates to the footwear industry. Such technological products for example, Point of

Sale (POS) Management Information System (MIS) help many companies to update about

inventory level, sales figures, delivery schedules etc. in real-time.

9.8 Design Capabilities 

Candidates with design and presentation skills in products such as Adobe, MS Front Page,

Corel Draw can also add value to footwear manufacturing companies. Continuous introduction

of new designs in shoes for men, ladies and children is necessary to beat competition.

Candidates with skills to encompass both style and quality should be preferred.

9.9 Knowledge of Mergers and Acquisitions 

While the retail trade industry in India faces one of its worst crises in recent years, more M&A’s

are occurring in the market to maximize profits and geographic markets. Knowledge in

implications of such M&A’s is an attractive skill that HR department must look into while

recruiting prospective candidates. The skills required for such tasks includes financial acumen,

managing change, fostering synergies, etc backed by professional experience on the field with

the customers as well as other significant stakeholders.

25
10. Conclusion 

The changing nature of jobs and work has led to additional approaches being used to analyze

jobs and work. The recruitment approach to job identifies competencies, which are the basic

characteristics that are linked to performance of individuals or teams. Once competencies have

been identified, they can be used for HR selection, development, compensation, and

performance management.

Recruiting must be viewed strategically, and discussions should be held about the relevant labor

markets in which to recruit. The future growth of the footwear industry in India will continue to be

market-driven, and oriented towards EU and US markets. With technology and quality of the

footwear improving year after year, Indian Footwear industry is stamping its class and expertise

in the global footwear trade.

26
Appendix  

Table 1: Footwear Industry Classification

Method of Production Labor Intensive Capital Intensive

Cottage Industry / Small Scale National / Multi – National

Manufactured by
Industries Manufacturers

Designer wear / Sports shoes

Household wears / Chappals /
Type of Footwear / Office wear / Ladies and
Sandals (mostly non-leather
Manufactured Kids wear / Formal and Party
products)
wear

Table 2: Regional Concentration

Large & Medium

Region SSI Household
Scale

Tamil Nadu 64 31 7

-Delhi & NCR 4 8 2

Agra, Kanpur 9 34 14

Calcutta 1 3 19

Bangalore 6 3 4

Mumbai 3 11

Others 13 10 3

27
Table 3: Estimated Share of Production Capacity

Leather Non-leather Leather Shoe Leather Non Leather

Region
Shoes Shoes Uppers Sandals Sandals

Percentage

Tamil Nadu 26 5 54 1 0

Delhi & NCR 10 77 4 1 60

Agra, Kanpur 45 0 32 62 0

Calcutta 12 0 2 3 0

Bangalore 3 3 4 0 0

Mumbai 4 2 1 32 0

Others 0 13 3 1 40

Total 100 100 100 100 100

Figure 2: India’s Footwear Export Growth

28
Table 4: India’s Export of Footwear to different countries

Country 2003- 2004- 2005- 2006- 2007- 2008-

04 05 06 07 08 09
Germany 146.23 164.73 170.97 217.23 246.84 229.48
UK 154.44 192.62 195.78 208.2 241.37 247.05
Italy 107.65 103.63 134.35 186.11 229.81 221.05
USA 89.17 107.34 131.07 127.15 136.92 163.03
France 50.84 64.84 74.48 99.81 116.03 118.9
Spain 38.06 46.86 63.7 64.57 76.69 91.86
Netherlands 20.09 20.03 32.96 48.57 72.91 76.2
Portugal 15.12 18.75 22.15 35.03 37.34 28.21
UAE 14.94 18.36 25.78 34.64 39.23 39.40
Denmark 11.7 13.75 18.37 14.65 17.48 14.78
Australia 8.44 8.00 11.58 10.11 12.52 13.34
Sweden 6.29 6.95 6.77 7.99 12.04 12.64
Canada 8.71 9.84 11.95 10.91 10.41 8.96
S.Africa 7.23 6.72 8.26 12.11 8.52 8.49
Japan 2.01 2.55 3.17 3.07 4.63 8.23
Others 86.81 125.8 133.9 156.76 226.61 252.04
Total 767.73 910.77 1045.24 1236.91 1489.35 1533.66
Source: DGCI&S
(Value in Million US $)

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Bibliography 

Research was undertaken after due consideration of various footwear manufacturer / retailers’

website. These are listed as under:

1. www.bata.in

2. www.nike.com

3. www.libertyshoes.com

4. www.relaxofootwear.com

5. www.actionshoes.com

6. www.rinaldidesigns.com

Websites of relevant trade associations were also referred; these are as under:

7. www.footwearindia.net/

8. www.indianshoebazaar.com

9. http://www.shoes.in/

10. www.shoeinfonet.com

11. dir.indiamart.com

12. www.tradeindia.com

13. http://www.clri.org/

14. www.fddiindia.com

15. www.nift.ac.in

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