Tata International's leather business unit has entered into an agreement with the Martinez Group of Spain. Martinez's primary business is in the manufacture of leather products, footwear components and the sourcing of finished leather.
Under the agreement, Martinez will market and sell Tata leathers to its customers in Spain under the Tata brand name. It will also create a marketing infrastructure and commit resources to support it. Martinez has also appointed Tata as the exclusive partner for outsourcing the production of its requirements for fashion leathers and will provide Tata with technical assistance for such production. Further, Martinez has also appointed Tata International as the exclusive partner for the marketing of its leather in Asia, primarily in the Far East region.
According to Tata, such an alliance is unique in the leather industry in two respects. One, it creates joint stakes for both partners, allowing them to leverage their respective marketing and production strengths. Second, it is seen as delivering cost advantages and better realisations to both players. Tata has had a presence in Spain for quite some time, but the business model offered little scope for capturing better value and enhancing its business, the company says.
Martinez has been in the leather business for the last 45 years and is described by Tata as having both a good insight into the Spanish market as well as close relations with shoe brands and factories. The Group was identified during the roadshow, 'Partnership 2004' , organised by Tata International at Alicante, Spain in February this year. The agreement was signed by Juan Martinez Garcia, president, Martinez Group and O. K. Kaul. Spain has traditionally been an important production hub for European and US fashion brands such as Kenneth Cole, Prada and Lacoste. The industry is characterised by high fashion and superior crafted leather shoes and articles.
