to make India a key sourcing hub as China loses its cost advantage due to the appreciation of its renminbi currency and stricter labour laws.

Samsonite, which currently sources one-lakh units of luggage per month from its manufacturing unit in Nasik and through long-term agreements with other manufacturers, will more than double this over the next three years, Samsonite president (Greater Asia) Ramesh Tainwala said.

“Till last year, sourcing from India was done only for risk diversification, as we did not want to put all our eggs in the China basket. Now, however, we feel India has a competitive edge with China getting more expensive,” he said.

Sourcing from India will reach 2.5-lakh units per month by 2011, accounting for 40% of Samsonite’s global total. New brands and product categories will also be introduced in the growing Indian market, which Mr Tainwala said is the fifth biggest in the world for Samsonite.

The company will start sourcing shoes from India starting this year and has earmarked an investment of Rs 150 crore to increase capacity at its Nasik plant

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