May make in India if GST rates are favourable: Crocs
US-based Crocs plans to manufacture its products in India provided GST is favourable concerning the footwear sector.
The US-headquartered footwear brand Crocs will look at manufacturing its products locally if the much-awaited Goods and Service Tax is favourable for the footwear sector.
"We do have business plans in place based on certain assumptions on GST (rates). If it is favourable, we are going to plan manufacturing products in India. We will take decision in 6-8 months," Crocs India Managing Director Deepak Chhabra said.
He further said: "At present, there is no incentives for manufacturing locally. VAT rates for footwear are much higher than apparels. Unless there is benefit of making in India, there is no point in doing it."
At present, Crocs India sources 100 per cent of its finished products from its global manufacturing hub in China and Vietnam.
Crocs is looking at doubling its India business in three years as it widens product portfolio and expands retail footprint.
The company is looking at going beyond its core beachwear offerings and become a casual footwear brand.
At present, its product offering includes flats, loafers, sneakers, flip flops, and Crocs' signature trademark clogs.
Crocs, which does not share its financial numbers, globally sold 55 million pairs of shoes in 2016. It sold 1.5 million pairs in India last year.
At present, the company has 1,000 points-of-sale including over 35 exclusive stores.
It operates in over 90 countries and offers casual footwear for men, women and children.