Phoenix Kothari Footwear to set up new Adidas facility in Karur

Tamil Nadu is strengthening its position as a global footwear manufacturing hub, with major international brands and their supply-chain partners increasing sourcing activities from the state.

The latest development comes from Phoenix Kothari Footwear, which is set to commence production of Adidas footwear at its new manufacturing facility in Karur from 10th July.

A joint venture between Chennai-based Kothari Industrial Corporation (KICL) and Taiwan’/s Evervan Group, Phoenix Kothari Footwear plans to invest approximately US $1 billion over the next five years. The company aims to manufacture around 100 million pairs of shoes during the period and create up to 50,000 jobs. The Karur project alone is expected to generate 15,000 jobs in phases.

The company is already exporting footwear for Crocs from its Perambalur facility, where it has invested around Rs 5,000 crore (US $). According to J Rafiq Ahmed, Managing Director, KICL, the company is seeking a significant share of India’s non-leather footwear exports as it expands its manufacturing footprint.

The expansion reflects a broader shift within the global footwear industry. Suppliers serving leading international brands including Adidas, Nike, Puma, Crocs, New Balance and Reebok have increasingly turned to Tamil Nadu for sourcing and manufacturing operations. The state has emerged as India’s leading footwear production centre, particularly in the non-leather segment.

Several Taiwanese footwear manufacturers, regarded among the world’s largest producers of branded athletic footwear, have established or expanded operations in Tamil Nadu. These include the Pou Chen Group, which manufactures for brands such as Nike, Adidas and New Balance through its Indian operations, as well as Hong Fu Group, Feng Tay Group, Dean Shoes, Oasis Footwear and Evervan Group.

Industry investments in Tamil Nadu’s non-leather footwear ecosystem have exceeded Rs 12,000 crore in recent years, with additional projects currently under implementation. These investments are expected to further reinforce the state’s status as a global footwear manufacturing destination.

Tamil Nadu currently accounts for more than 32 per cent of India’s footwear production and nearly 48 per cent of the country’s leather and non-leather footwear exports, valued at more than US $2 billion. Industry executives believe the continued influx of global manufacturers and suppliers will further enhance the state’s competitiveness in international footwear markets.