Phoenix Kothari's Adidas plant in Tamil Nadu set to start production

Tamil Nadu is rapidly advancing its position within the international footwear manufacturing sector as global brands and their primary contract suppliers intensify sourcing and production operations across the state. In the latest industrial development, Phoenix Kothari Footwear is scheduled to commence commercial manufacturing of Adidas footwear at its newly constructed facility in Karur on 10 July.

Phoenix Kothari Footwear, operating as a strategic joint venture between Chennai-based Kothari Industrial Corporation Limited (KICL) and Taiwan-based Evervan Group, has outlined a comprehensive investment deployment of approximately US $1 billion over the next five years. This capital expenditure is projected to fund the production of roughly 100 million pairs of shoes over the period while generating up to 50,000 regional jobs, with the Karur factory alone accounted for providing 15,000 jobs across successive implementation phases.

The upcoming Karur launch complements the venture's established operational footprint in Perambalur, where an investment of around Rs 5,000 crore has been directed toward exporting footwear for Crocs. According to J. Rafiq Ahmed, Managing Director of Kothari Industrial Corporation Limited, the corporate expansion aims to secure a substantial share of India’s expanding non-leather footwear export segment.

This private capital commitment mirrors a structural shift in global supply chains, where leading international brands—including Adidas, Nike, Puma, Crocs, New Balance, and Reebok—increasingly rely on industrial capacity in Tamil Nadu. The geographical concentration has established the state as the primary production centre for footwear in India, with a specific dominance in non-leather athletic and casual product portfolios.

A critical driver behind this industrial expansion is the arrival of major Taiwanese contract manufacturers, which rank among the world's largest producers of branded athletic footwear. Prominent manufacturing entities including the Pou Chen Group, which produces for Nike, Adidas, and New Balance, alongside Hong Fu Group, Feng Tay Group, Dean Shoes, Oasis Footwear, and Evervan Group, have systematically scaled their manufacturing footprint in the region. Total institutional investment directed into Tamil Nadu's non-leather footwear industrial ecosystem has surpassed Rs 12,000 crore in recent years, with multiple supplementary infrastructure projects currently in progress to secure future output.

This sustained influx of capital has significantly enhanced the state's domestic and international trade metrics, elevating its role in the national export economy. Tamil Nadu currently commands more than 32 per cent of total domestic footwear production and accounts for nearly 48 per cent of India's aggregate leather and non-leather footwear exports, a trade volume valued in excess of US $2 billion. Senior industry executives indicate that the deliberate integration of global contract manufacturers and specialised material suppliers will continue to improve the region's operational efficiencies and boost its overall competitiveness within international footwear consumer markets.