S&V Weekly Newsletter Vol.9 No.13, March 27 2023

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Eddels: Rescue over, production to go upmarket, management wait to hear their fate

Pietermaritzburg, KZN, SA - New Eddels owner Caralli Footwear (Pty) Ltd plans to keep the factory in Pietermaritzburg, and to retain all weekly-paid factory staff, Caralli director Goolam Bhabha said on Friday.
      He said Caralli was "still reviewing the full operations of the factory", including the contributions of management staff, "but for the moment, not much will change in production".
      Eddels will stay where it is, producing around 4 000 pairs/day, with a mix of synthetic and leather uppers, to fulfil existing orders.
      "Eddels is in premises, 60% of which are not being utilised," he said. "We have a contract to remain there for 6 months. Thereafter, we'll move into smaller premises."
      He said 4 premises had been shortlisted.
      Caralli intends increasing the production of leather footwear, and generally moving upmarket, "to meet the demand identified there".
      He said this was not to move away from the chain market, but "to expand the range of production, which will also filter to the synthetic sector".
      He said Caralli had "extremely high" skills levels, and that a skills exchange with Eddels was planned.
      He said Caralli's motivation for buying Eddels was that "Caralli is a successful factory that can't meet demand", and that it has a wholesale division.
      He said the intention was to build an export market, initially to other parts of Africa.
      Until recently, Caralli itself hasn't been widely known in the footwear industry. Social media selling channels indicates it specialises in men's formal leather footwear, retailing at around R5000/pair.

IDC responds to Eddels questions

Eddels was a division of clothing manufacturer Celrose (Pty) Ltd, in which the Industrial Development Corporation (IDC) is the majority shareholder. IDC head of corporate affairs Tshepo Ramodibe responded to our questions about the sale to Caralli. Can you tell me how much Caralli paid for Eddels?

While the IDC is pleased with the acquisition of Eddels Shoes after a prolonged process to find suitable buyers, the purchase price is bound by confidentiality. Notwithstanding, the price reflected the valuation of the business.

Has Caralli bought 100% of Eddels?

Yes, Caralli acquired 100% of the shares in Eddels.

Did you attach any conditions to the sale of Eddels, and if so, what were they?

While IDC was indirectly invested in Eddels, via its shareholding in Celrose, we have merely been facilitating the transaction between the two parties – Caralli and Celrose.

Do you know how many staff and management have been taken over?

Caralli is best placed to answer this question and its aspirations and plans for the business.

Has Eddels been producing shoes this year, and if so, at what scale?

As you may be aware, the challenges facing Eddels are well documented - hence the reason and motivation for Celrose to find a strategic buyer that would help overcome these and retain the manufacturing capacity in South Africa.

Was Eddels making a loss, and if so, can you quantify it?

Refer to the answer above.

Has Caralli given you any insight into its plans for Eddels, and are you able to share those?

Caralli has stated its intent to incorporate Eddels into its existing operations. Notably, Caralli sees the transaction as an extension of its commitment to investing in the sustainability and growth of the business and the footwear sector over the medium to long term.

What happens to Celrose?

Celrose remains operational. The IDC remains a shareholder in the enterprise.

Proudly SA localisation conference

Johannesburg, Gauteng, SA - The CTFL sector features prominently in the 11th annual Proudly South African Buy Local Summit & Expo, at the Sandton Convention Centre, today and tomorrow.
      The conference theme is 'Growing the economy and creating jobs through localisation'.
      Tomorrow, Natasja Ambrosio, head of sustainability, Mr Price Group, Justin Barnes, director, B&M Analysts, Nimrod Zalk, deputy DG, industrial competitiveness and growth division at the DTIC, and Ashley Benjamin, general secretary of the National Union of Leather & Allied Workers, will take part in a panel discussion on the CTFL sectoral Masterplan.
      For more information, call Proudly SA at +27 (0)11 327 7778.

Urgent appeal to importers from the National Consumer Commission: Help us help you cut down your waiting times

Pretoria, Gauteng, SA - The National Consumer Commission (NCC) requests all importers of CTFL goods to complete a questionnaire on a research study covering the cost of compliance with the Consumer Protection Act No 68 of 2008. This is to enable the NCC to assist importers in understanding the provisions of the CPA, establish any challenges experienced, and to provide suggestions in terms of improving compliance.
      The deadline for submitting the questionnaire is 15 April.
Please click HERE to access the questionaire.

In case you missed it!

The March issue of S&V Footwear & Leather Goods Magazine

CLICK HERE TO VIEW IT ONLINE

S&V FOOTWEAR & LEATHER GOODS MAGAZINE VOL89 No3 March 2023

IN THIS ISSUE:

03 Fashion & Street Wear
- The return of the boat shoe.
- Comment by David Palmer of GH Bass, Jamal Bux of Portside Footwear, Alistair Watt of Quayside, Brian Sparks of Sebago, and Rodney Naidoo of SeaBass.
- Rock & Co/Gigi Lamayne collab: The power to influence, writes Precious Nkonyane of Dangee Carken.

09 Sportswear
- Soccer and rugby. - Comment by former professional sportsman, former Adidas marketing director and current sports commentator Gavin Cowley, Mike Augoustides of Mike's Sports, an anonymous Gauteng sports retailer, Roger Livesey of LGB Distributors/Admiral, and Gary van Rooyen of Olympic International SA.

13 Military, Safety & Uniform Footwear
- ProFit: Women's range doubled, writes Nick Bryant.
- NRCS report on activities.

14 Headlines with Tinashe Mandirahwe
- The future of footwear: Custom 3D printed shoes from Zellerfeld.

15 Trade Statistics
- January imports and exports of footwear and accessories, provided by SARS.



Advertisers in this Issue
Evolution Engineering (01), Berzacks (02), Freestyle Genuine Handcrafted Leather (04), Saddler Belts (OFC), SAFLEC (06), S&V Directory (15), S&V Trade Fair Calendar (13).

They Said It

"We always need a policeman for the police." - A leather scientist on the need for accreditation for organisations which offer certification of sustainability and environmentally sound practices to tanneries and related businesses.

New subscribers last week

Umer Baig, TSA Mo GAE, Gaborone, Botswana
Karen Marais, Buyer, Rage Distribution, Bedfordview, Gauteng, SA

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za

27/03/1952: Mike Conradie, freelance designer, Durban, KZN, SA.
27/03/1958: Tony Parkes, retired, formerly Bata SA, Pinetown, KZN, SA.
27/03/1992: Eugene Greyling, Soviet, Midrand, Gauteng, SA.
28/03/1963: Brett Momberg, BBF Group, Port Elizabeth, E. Cape, SA.
28/03/1964: Pooan Archary, Paragon Footwear, Pietermaritzburg, KZN, SA.
28/03/1968: Ismail Gathoo, Esquire, Bethlehem, Free State, SA.
28/03/1972: Alfonso Smerilli, Michelle Footwear, Durban, KZN, SA.
28/03/1985: Taariq Mahomed Hoosen, Paris Belts, Johannesburg, Gauteng, SA.
28/03/1986: Mohamed Adam, Seadoone Shoes, Amanzimtoti, KZN, SA.
29/03/1949: Jose Alves, Unikem, Pinetown, KZN, SA.
29/03/1954: Keith Alexander ?
29/03/1955: Dennis Manning, emigrated, formerly Trenzado Footwear, Durban, SA.
29/03/1963: Kosi Cooppan, Majenta Shoes, Durban, KZN, SA.
29/03/1974: Julian Zuluaga, left SA, formerly Bata SA, Pinetown, KZN, SA.
30/03/1946: Sarel Broodryk, retired, formerly Exotan, Port Elizabeth, E. Cape, SA. 31/03/1950: Herbert Schier, African Leather, Swakopmund, Namibia.
31/03/1960: Gill Barnett, Urban Angel Accessories, Boksburg, Gauteng, SA.
31/03/1966: Lars Torpus, ?, formerly Nakara, Windhoek, Namibia.
31/03/1975: Imraam Essop, Baby Luv, Springs, Gauteng, SA.
01/04/1960: Steve Hildebrand, (?) formerly agent, Pinetown, KZN, SA.
01/04/1969: Jenny Hopkins, agent, Port Elizabeth, E. Cape, SA.
01/04/1973: Rennie Thambiran, Borage Trading, Pinetown, KZN, SA.
02/04/1969: Chris Govender, Evané, Pietermaritzburg, KZN, SA.
02/04/1970: Gerhard Rossouw, CG Distributors, Paarl, W. Cape, SA.
02/04/1974: Shaheen Hoosen, Kana’s Wholesalers, Pretoria, Gauteng, SA.
02/04/1984: Lloyd Naidoo, Best Shoes, Pietermaritzburg, KZN, SA.

28/03/2011: Brian Berger (b. 25/12/1963), Armadillo Footwear, Johannesburg, KZN, SA.
28/03/2015: Colin Grecia (b. 29/12/1964), Classic Components, Pinetown, KZN, SA.
29/03/2008: Jeff Bub (b. 28/09/1942), In Shoes/In Clothing [closed], Cape Town, W. Cape, SA.
31/03/2016: Peter Edmeades (b. 19/07/1950), Rebel Safety Gear, Germiston, Gauteng, SA.
01/04/2001: John Rider, Colin D Bailey/BU Shoe Machinery (closed), Pinetown, KZN, SA.
01/04/2002: Paul Moeller (b. 20/07/1931), PMC Group, Cape Town, W. Cape, SA.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

3. Malawian Kwacha (MWK)

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4. Zambian Kwacha (ZMW)

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5. Zimbabwean Dollar (ZWL$)

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Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (23 March 2023) - The current average hide price decreased by 9.5% to R3.80/kg from R4.20/kg a week ago. The current price is 9.5% lower than the average price a month ago and 45.1% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R3.60 Maximum price: R5.00. Please note: Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, Absa group.

Note: For previous prices, see HERE

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Jay's Outfitters, Randfontein, Gauteng, SA. Men's outfitter.
JB Sports, Gaborone, Botswana. Sport fashion.

Classified Adverts

Position required. In management / consulting

I am a qualified production manager. A very active 69.
Extensive experience in the manufacturing of most types of footwear. British passport holder but expired.

Held the position of regional manager of Leather Industries Research Institute, Durban, responsible for:
1 Training of management and operatives.
2 Quality control evaluation and training. Conducted a SAQC for Woolworths.
3 Factory survey and design of layout, and requirements.
4 Selection testing and training.

I am available to relocate anywhere.
I have a code 14 license. Don't smoke or drink.

Robert. A. Leith.
Aleith04@gmail.com
0629328706

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: April 3, 2023.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Our website www.svmag.co.za