The state is in the process of grooming a supplier ecosystem, for which India is almost entirely dependent on imports.
Suppliers of several non-leather footwear brands like Nike, Adidas, Puma, New Balance, and Reebok are betting big on Tamil Nadu as a manufacturing hub, with the state already in the process of grooming a supplier ecosystem, for which India is almost entirely dependent on imports.
According to sources, more than half a dozen global suppliers are in the process of setting up their units in the state as part of their China Plus One strategy and India's import curbs.
To create a raw material supply base for these upcoming players, Kothari Industrial Corporation has signed pacts with the Tamil Nadu government to bring in 19 suppliers from countries like Taiwan, Vietnam, China, and Portugal.
This is expected to result in an investment of Rs 4,000 crore and create 50,000 jobs.
One of the latest additions to the list of global suppliers in the state is the Taiwanese company Dean Shoes (Long Yin Investment).
On Friday, Tamil Nadu Chief Minister M K Stalin laid the foundation stone for a new manufacturing unit by Dean Shoes at the SIPCOT industrial park in Ariyalur.
The proposed investment of Rs 1,000 crore is likely to generate 50,000 jobs in the backward district.
Also, the world's largest contract manufacturer of branded athletic and casual footwear, Pou Chen Corporation, and another major company, Hong Fu Industrial Group, are in the process of setting up units.
Sources indicate that Zucca, Sports Gear, and Oasis Footwear are also among the new manufacturers setting their sights on Tamil Nadu.
This is in addition to existing manufacturers like Lengthy, ShoeTown (in tie-up with Phoenix Kothari), and Apache.
"We are bringing in 19 raw material suppliers to the state to ensure that these global players will not have to import raw material from China and other countries," said N Mohan, director and chief executive officer (footwear business) of Kothari Industrial Corporation.
In November last year, JR One Kothari set up a manufacturing plant to produce Crocs footwear in the Perambalur district, along with ShoeTown.
"These companies are looking at India mainly because of the China Plus One policy and also the recent rule by the government making the Bureau of Indian Standards certification mandatory for factories outside India," said V K C Razak, managing director of VKC Group.
There were reports that players like Armani Exchange, Superdry, Calvin Klein, Tommy Hilfiger, and US Polo Assn were running out of local shoe stocks due to the BIS regulations.
In terms of global footwear production, China tops the list with 54.6 per cent, of which 71.3 per cent is exported, according to data from the World Footwear Yearbook 2023.
India holds the second spot in production at 10.9 per cent, but only 11 per cent of its production is exported.
India's export orientation is low compared to China due to its limited product offerings. India is predominantly focused on leather-based footwear.
Tamil Nadu Industries Minister T R B Rajaa said the state's attractive footwear policy was behind the rising interest by the global companies.
"We are a top global footwear hub and home to more than 32 per cent of India's entire footwear manufacturing sector," said Rajaa.
According to a report by the think-tank Global Trade Research Initiative, the Indian footwear market, valued at $26 billion, is projected to reach $90 billion by 2030.
With global majors flocking to the state, Tamil Nadu is expected to take the lion's share of that growth, especially in the non-leather segment.
Feature Presentation: Aslam Hunani/Rediff.com
