Relaxo Footwears Limited has announced a reassessment of its total manufacturing capacity across all plants. The company’s daily output capacity has been optimized to 9,10,000 pairs per day, a decrease from the previous capacity of 10,50,000 pairs per day. This adjustment is attributed to ongoing reconstruction and renovation of its manufacturing facilities in Bahadurgarh, Haryana, and a strategic shift towards fashion-forward footwear segments requiring specialized production lines.
Relaxo Footwears Adjusts Manufacturing Capacity
Relaxo Footwears Limited has informed stakeholders about an optimization of its total manufacturing capacity. Following a reassessment, the company’s daily production capacity across all its plants has been revised downwards to 9,10,000 pairs per day. This represents a reduction from the previously stated capacity of 10,50,000 pairs per day.
Factors Influencing Capacity Changes
The company cited several key reasons for this adjustment. Its manufacturing plants, RFL-I and RFL-II, located in Bahadurgarh, Haryana, are undergoing reconstruction and renovation. These facilities, built in 1994 and 1999 respectively, are over 25 years old and are being modernized to enhance infrastructure, ensure safety compliance, and leverage increased Floor Area Ratio (FAR) for future expansion.
Furthermore, Relaxo is actively expanding its product mix to include more fashion-forward footwear. This strategic shift necessitates specialized production lines and more complex manufacturing processes. The transition requires modifications to conventional assembly layouts and workflows, which directly influences the daily output capacity.
These factors collectively led to the reassessment and optimization of the company’s overall manufacturing output.
Source: BSE
