FDDI signs agreement with Government of Ethiopia for technological upgradation of Ethiopian footwear industry

"Support to Ethiopian Leather Industry by FDDI for enhancing the global competency at firm levels" FDDI takes a leading role for the Technological Upgradation (Benchmarking) of Ethiopian Footwear Industries at Addis Ababa

FDDI has earned good name for its technical expertise and knowledge at the international forum and is providing consultancy to Sri Lanka, Kenya and other Asian and African Countries for the growth of the leather industry.

In order to overcome this, the Govt. of Ethiopia was seeking an agency/ consultant who can work in the industry to enhance the competitiveness at firm level through global benchmarking aimed towards higher export earning and global recognition of the products manufactured.

In this regard, Mr. Seleshi Lemma, Director General of Ethiopian Textile and Leather Industry Development Center (T&LIDC) of the Federal Democratic Republic of Ethiopia had visited FDDI on 3rd November 2009 & had met Mr. Rajeev Lakhara, IRS, Managing Director, FDDI seeking help from FDDI.

Mr. Lakhara while assuring Mr. Lemma said “FDDI will provide full support & cooperation towards the technological development and benchmarking of the Ethiopian Leather Industry that will give it a cutting edge in the international market.”

Subsequent to this, a high level delegation from FDDI, consisting of Mr. B. S. Katiyar, Deputy Director and Ms. Satyam Srivastava, Consultant, under the Chairmanship of Secretary FDDI, Mr. Shashi Bhushan Shukla, IRS had visited Addis Ababa, Ethiopia from 4th to 7th November 2009.

The delegation visited Leather & Leather Products Technology Institute (LLPTI) and the seven renowned Footwear Industries located in Addis Ababa such as Kangaroo Shoe Company PLC, Ras Dashen Shoe Factory, Anbessa Shoe SC, Peacock Shoes, Ramsay Shoe Factory, OK Jamaica Shoe Factory etc.

The delegation met the State Minister of Trade & Industry, Mr. Tadesse Haille and briefed their findings & the critical gap areas and the possible cooperation's which can be extended by FDDI towards the development and growth of the Leather Product sector of the country.

A brief presentation regarding the Critical Gap Areas at various stages of manufacturing and the possible cooperation & needs to enhance the global performance of the sector was made. The Directors of Textiles & Leather, GTZ, Ministry of Industry & Trade, LLPTI and the senior members of the capacity building team were also present during the discussion.

The Secretary FDDI, Mr. Shashi Bhushan Shukla, IRS during the discussion said “The Ethiopian industry faces constraints due to outmoded equipment and machinery; lack of market information; low quality standards; and limited supply of raw materials. Lack of market awareness and quality standards are also impediments to increasing exports.”

• Lack of Skill and Knowledge;
• Lack of Systems & Control;
• Poor Quality of Leather etc.

• Expertise not adequate to bring technological change;
• Curriculum not adequate to train people at various segment;
• Lack of competency in Design, product development and innovations etc.

FDDI delegation also observed that LLPTI, the only institute present to extend support to the industries also needs to be strengthened to meet various requirements of the industry and help them attain global competency. The 'Critical Gap Areas' that were identified at LLPTI includes the expertise not adequate to bring technological change, curriculum not adequate to train people at various segments, lack of competency in Design, product development and innovations etc.

Understanding the capabilities of FDDI, the Ethiopian Govt. selected to have FDDI as the partner in the growth & development programme of the Ethiopian Footwear & Leather Product Sector.

Exuberant with the development in this regard, the Managing Director, FDDI said “On the request of MoTI, Ethiopia, FDDI has proposed various interventions for seven Footwear industries of Addis Ababa, Ethiopia for a period of 01 year, in the area of Production, Management, Design, Technology, Planning, Productivity, Quality etc, aimed towards enhancing the global competency at firm level.”

Under the terms of the agreement, FDDI will be providing the knowledge and experience of its highly skilled senior experts by which the Ethiopian Leather industry will be able to enhance the competitiveness at firm level through global benchmarking aimed towards higher export earning and global recognition of the products manufactured.

FDDI having a prolonged experience/expertise in the area of international level of Training & Consultancy is totally geared up to take up the project and is confidant that on the completion of the implementation plan the Industries of Addis Ababa will be capable enough to meet the international requirements and a make a mark in global arena.

FDDI will be commencing the implementation plan from 1st week of March 2010 and a team of 19 experts will be posted at Addis Ababa for the purpose.

Mr. Shahsi Bhushan Shukla, IRS, Secretary FDDI while discussing with the Ministry of Ethiopia and the Footwear Industrialists present during the occasion said, “This being one of the most prestigious projects for the institute, FDDI would be committed to extend all kind of possible support to the Footwear Industry undertaken in the intervention plan to help them attain global competency and enhance their export performance.”

The agreement was signed in the presence of a team of Directors and Members from MoCB, MoTI and ECBP (Engineering Capacity Building Programme) of Ethiopia led by the State Minister of Trade & Industries, Mr. Taddessee Haille along with the Managing Directors of all the seven Industries identified to be taken up under the implementation plan.

“Having full faith on the expertise and capabilities of FDDI, we wish to achieve our ambitious target through planned technological development and benchmarking of the Footwear sector under the able leadership of FDDI. We wish FDDI to lead in all aspects in all the 07 Industries taken up under the intervention plan” said Mr. Haille, State Minister of Trade & Industry, Ethiopia.

Managing Director of Peacock Shoes, Mr. Allyas said “The Footwear industry of Addis Ababa is looking forward to work under the guidance of FDDI- such a prestigious institute dedicated for the development and growth of the Footwear sector.”

He further added “The interventions of FDDI in the area of Design, technology, System formulation and implementation will prove to be a Renaissance for the Footwear sector of Ethiopia which is lagging behind today in many aspects and needs support in all areas of manufacturing and development.”