Kothari-Shoe Town Duo Expands in Tamil Nadu

In a significant expansion move, Chennai-based Kothari Industrial Corporation Ltd (KICL) and Taiwan’s Shoe Town Group are set to establish two new factories in Tamil Nadu, furthering their partnership in the non-leather footwear sector. The collaboration, which already includes a ₹5,000 crore investment in a manufacturing unit in Perambalur district for producing Crocs, is now poised to bring substantial economic benefits to the region.

The new factories, expected to create nearly 50,000 jobs, will focus on producing shoes for two major global brands, though the specific districts and brands remain undisclosed. J. Rafiq Ahmed, Managing Director of KICL, highlighted the strategic importance of these developments in boosting local employment and advancing India’s position in the global footwear industry.

Ron Chang, Chairman of Shoe Town Group, emphasized India’s appeal as a manufacturing hub due to its lower labor costs and abundant workforce. The group, which supplies major brands like Nike, Adidas, and Skechers, views India as a key player in its "China Plus" strategy, especially as other Asian markets become less competitive.

The partnership also includes plans to develop a component manufacturing unit in Perambalur, essential for the success of the footwear project. Chang is collaborating with over 18 partners to establish an innovative component cluster, aiming to overcome supply chain challenges and bolster India’s industrial infrastructure.

This expansion marks a major milestone in the KICL-Shoe Town alliance, signaling a robust future for India’s footwear manufacturing capabilities and contributing significantly to the local economy.

News by Rahul Yelligetti