According to reports, French fashion and leather goods company LVMH is to expand operations to Asia for the first time by building a new factory, near the southern Indian city of Pondicherry. This would be its first manufacturing plant outside Europe and the USA.

The purpose of the factory will be to attach luxury brand Luis Vuitton shoe soles to the matching uppers. However, despite their new part-assembly base, the shoes will continue to bear the familiar ‘Made in Italy’ label, as most of the shoemaking process will be carried out in the European country.

The plant is due for completion by the end of 2008.