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Nike supplier to ramp up SEZ

Thursday, 08 July 2010

The Cheyyar Special Economic Zone (SEZ) is undergoing expansion as the Taiwan-based Feng Tay Group is about to invest an additional Rs 2.5 billion. The Feng Tay Group, producer of one sixth of all Nike shoes sold across the world had set up this SEZ earlier, having invested Rs 1.9 billion to promote it when it signed a MoU four years ago. The facility can produce up to 550,000 shoes per month. Tapesh Sinha, General Manager, Feng Tay Group India, says, as the demand is growing, they are planning to set up three more facilities inside the zone with a similar capacity. Feng Tay Group has an overall investment plan of over Rs 3 billion towards promoting Cheyyar Special Economic Zone in the near future.

The 275-acre Cheyyar SEZ is located in Cheyyar Taluk in Tiruvannamalai district of Tamil Nadu. It currently employs 5,713 people and is likely to triple the number once the new units become operational. The cumulative exports from the zone since 2008, when production commenced have been Rs 1.87 billion.

Feng Tay Enterprises was established in 1971 and focuses mainly on producing athletic shoes. Its headquarters, primarily for product development and human resources functions, is located at Yunlin Science and Industrial Park in Taiwan, while its factories are spread throughout China, Vietnam, Indonesia and India. Feng Tay Group currently has 68,000 employees and produces more than one sixth of Nike's total annual sales volume. Today, it is $770 million worth company.