Updated on: March 15th, 2022 1:09 PM

Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme

Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme is a sub-scheme of the Indian Footwear and Leather Development Programme (IFLDP). The DPIIT has recently announced that IFLDP has been approved for continuation till March 31, 2026. In line with the extension, DPIIT notified the Guidelines of Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme. Under this scheme, the Government is providing funds to facilitate global promotions of brands. The sub-scheme of IFLDP will help Indian leather, footwear, and accessories manufacturers to achieve higher valuations for their items and bring Indian products to the international markets.

The objective of the Brand Promotion Scheme

The primary objective of the Brand Promotion of Indian Brands in the Footwear and Leather Sector is to provide international branding support to leading Indian manufacturers in the Footwear and Leather Sector

• This scheme also aims to achieve Brands as Assets and higher valuations for leading Indian manufacturer’s product
• Another important objective of the scheme is to promote ten Indian brands in the international market.
• Brand Promotion of Indian Brands in Footwear and Leather Sector scheme also aims to shore up bottom lines and top lines of Footwear and Leather Sector

The sub-scheme will help Indian leather, footwear, and accessories manufacturers to achieve higher valuations for their items and bring Indian products to the international markets.

Eligibility Entities of Brand Promotion Scheme

The benefits under the scheme would be available to the Indian manufacturer engaged in the Footwear and Leather business and intent to scale up their production and capacities and compete with the international players and those investing in brand building and upgrading the infrastructure. All Indian Manufacturers in the Footwear and Leather sector including the following units are eligible for the Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme:

• Finished leather industries
• Leather goods Units
• Leather garments industries
• Saddlery
• Footwear and footwear components industries

Eligibility Criteria

The eligibility criteria for Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme are as follows:

• To avail, the benefit of the scheme, the Footwear, and Leather Sector should have a cash profit for the last 3 years
• To avail of the financial assistance under the brand promotion scheme, the unit should have minimum exports of Rs. 50 crore per year of products manufactured by them or having minimum domestic sales of Rs. 50 crore per year of products manufactured by them
• Indian Brands having registered logo in Indian/overseas market, undertaking viable brand promotion programs can also apply for the scheme

Eligible Activities for Indian Brands Promotion

The eligible activities of Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme are as follows:

 Displays in International Departmental Store:

• Tie up with Local distributors or major stores shall be used as a tool for promoting particular Indian brands and their products.
• International Departmental Stores chains would be identified based on marketing studies or surveys.
• Display through the usage of digital or electronic media shall also be assisted

Publications of World Class Catalogues:

World-class catalogs for Indian brands and their products for use in the identified markets would help in facilitating market access and the creation of Indian brands and their products in international markets. The eligible Indian companies in the Footwear and Leather sector may create these catalogs suitable for identified markets through the usage of digital, social, electronic, or print media.

Registration Charges for Indian Brand/Logo overseas

Under the Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme, assistance will also be provided on a reimbursement basis to Indian manufacturers for registering their brands in International Market, wherever required, or for fulfilling the statutory requirements in buyer countries.

Publicity Campaign and Brand Promotion

Intensive publicity campaigns for an Indian brand in the Footwear and Leather sector and its products in identified markets through focused and extensive deployment of the right media tools to maintain recall of the Indian brand and its products through extensive usage of digital, social, electronic, outdoor or print media, to communicate to the respective global business community in Footwear and Leather sector.

The Pattern of Assistance

The Government assistance under the Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme is as follows:

• The government of India will offer up to 50 percent of the total project cost for certain activities such as registering brands and logos overseas, departmental store displays, publicity campaigns, and catalog publications among other things.
• The financial support will be limited to ₹3 crores per year for each brand for three years. The share of the Indian manufacturer would be balanced 50% of the project cost.

Note:  An appropriate amount would be paid to the designated agency for implementation and monitoring of the projects

Release of Fund

Approved Indian manufacturers need to maintain an exclusive project-specific Trust and Retention Account (TRA) in any nationalized bank, and the funds from the Government will be released into that account. After approval of the proposal, the Government would release its share of assistance in 3 phases for the approved proposal as per the following schedule: First installment: 40% of the assistance, as advance, on final approval of the project and on producing the statement of project-specific TRA reflecting the proportionate contribution (i.e. 40% of the share of the unit) deposited by the Indian manufacturer in the TRA. Second Installment: 30% of the assistance after submission of full utilization of the first installment and on producing the statement of project-specific TRA reflecting the proportionate contribution (i.e. 30% of the share of the unit as 2nd installment) deposited by the Indian manufacturer in the TRA. Third and Final Installment: 30% of the assistance on a reimbursement basis after submission of all relevant documents for completion of the project, the utilization of the previous installments of GOI grant and full utilization of the 100% share of the unit and on producing the statement of project-specific TRA reflecting the proportionate contribution (i.e. 30% of the share of the unit as 3rd installment) deposited by the Indian manufacturer in the TRA.

Designated Agency for Brand Promotion Scheme

The designated agent for the Brand Promotion of Indian Brands in Footwear and Leather Sector Scheme is an institute like the National Institutes of Design (NID), National Institute of Fashion Technology (NIFT), India Brand Equity Foundation (IBEF), Indian Institute of Foreign Trade (IIFT) or institutes of similar standing.

Application Procedure

The project proposal would be prepared by the eligible Indian manufacturer in consultation with the designated agency which would be placed before the Steering Committee constituted for this purpose, through the same designated Agency.

• A designated agency shall be appointed for the sub-scheme with the approval of the Empowered Committee.
• The designated agency will periodically review and present before the Steering Committee the impact of the fund allotted to the beneficiary by an increase in its actual exports.

Note: The Government's financial assistance cannot be utilized for purposes other than for which it has been sanctioned