Chennai, India – Phoenix Kothari Footwear, a joint venture between India’s diversified Kothari Industrial Corporation (KICL) and Taiwan-based Evervan Group, is investing INR50bn ($577m) in two non-leather footwear sites. Located in Eraiyur and Karur in Tamil Nadu, the facilities are expected to boost local employment and contribute to the region’s economic development, according to KICL.
The latest investment is in addition to the INR17.6bn put into JR One Footwear, another JV between Phoenix Kothari Footwear and Taiwan’s Shoetown Group. This produces Crocs brand footwear in Perambalur, and has already placed two million pairs on the domestic market.
On the strength of footwear JVs, Phoenix Kothari aims to produce 200 million pairs of shoes and create employment for 50,000 people by 2027. The company is also gearing up to sign a second MoU with Taiwan’s Shoetown in the presence of Tamil Nadu State chief minister MK Stalin, on 26 February.
Kothari has outlined plans to establish a 500-acre non-leather footwear cluster in Perambalur, Tamil Nadu. The Phoenix Kothari Footwear Park industrial cluster will bring together all the different components of the footwear manufacturing process, from design and production to marketing and distribution.
Footwear cluster
The south Indian state of Tamil Nadu has emerged as a favoured destination for international footwear brands like Nike, Crocs, Adidas and Puma, after the state government introduced a footwear and leather products policy in 2022. It includes the development of logistics infrastructure, increasing the supply of skilled labour by offering training programmes, marketing assistance and subsidised land.
Tamil Nadu has also become a popular destination for Taiwanese companies like Feng Tay, Pou Chen, Hong Fu and Deenshoes, which have all signed agreements with the state government for production bases in the area, about 34km from state capital Chennai. It marks a transition in the global footwear industry towards new manufacturing bases outside of China.
Currently, Tamil Nadu is home to more than 32% of India’s footwear manufacturing sector. About 45% of the country’s footwear exports originate from the region.
