Lehar Footwears Limited has announced one of the biggest expansion plans in its recent history with the development of a new large-scale sports footwear manufacturing facility in Kundli, Haryana. The company informed stock exchanges that this strategic move is aimed at significantly increasing production capacity and strengthening its position in India’s rapidly growing sports and athleisure footwear market.

The announcement marks a major milestone for the Jaipur-based footwear company, which has steadily built a strong presence in India’s non-leather footwear segment over the past several years. With increasing demand for comfortable, stylish, and affordable sports footwear in India, the company is now preparing itself for the next phase of growth through higher production capabilities, modern technology adoption, and improved operational efficiency.

The new manufacturing facility is expected to help the company expand its monthly production capacity from around 1 lakh pairs to nearly 5 lakh pairs per month in a phased manner. This represents a massive 5x increase in production capacity, highlighting the company’s confidence in future demand growth.

New Kundli Facility to Strengthen Manufacturing Capabilities

The proposed manufacturing unit in Kundli, Haryana, will focus primarily on the production of sports shoes and EVA-based footwear products. The facility is expected to become operational from Q2FY27 onwards, according to the company’s official statement.

Lehar Footwear has already signed a rent agreement for the proposed facility, indicating that the project is moving ahead according to schedule. The facility is expected to be equipped with advanced manufacturing machinery and technology-enabled systems designed specifically for modern sports footwear manufacturing.

The company said the new facility will help improve:

• Product quality
• Operational efficiency
• Production consistency
• Manufacturing scalability
• Delivery timelines

These improvements are expected to strengthen the company’s overall competitiveness in both branded and OEM footwear markets.

Rising Demand for Sports and Athleisure Footwear

India’s footwear market has witnessed a major transformation in recent years. Consumers are increasingly shifting towards sports-inspired casual footwear, driven by changing lifestyles, fitness awareness, and fashion trends.

The athleisure category has become one of the fastest-growing segments in the Indian footwear industry. Young consumers now prefer shoes that combine comfort, style, and functionality. As a result, demand for sports shoes, sneakers, and lightweight footwear products has risen sharply across urban as well as semi-urban markets.

Lehar Footwear appears to be positioning itself aggressively to benefit from this trend.

The company’s expansion into higher-value footwear categories is expected to improve its revenue mix and potentially support better profit margins in the long term.

Focus on Premiumisation Strategy

The company has clearly indicated that the new facility forms an important part of its premiumisation strategy. Premiumisation refers to a business strategy where companies move towards higher-value products that can command better pricing and margins.

Traditionally, Lehar Footwear has been known for mass-market non-leather footwear products. However, the sports and athleisure segment offers significantly larger growth opportunities and stronger branding potential.

The new facility is expected to help the company:

• Increase its presence in premium footwear categories
• Improve average selling prices (ASP)
• Strengthen brand positioning
• Expand into fast-growing urban markets
• Build stronger consumer loyalty

This strategic shift could help Lehar Footwear compete more effectively with larger national and regional footwear brands.

Support for Rannr Brand Expansion

One of the biggest beneficiaries of this new facility is expected to be the company’s in-house athleisure footwear brand, Rannr.

The Rannr brand has been developed to target India’s growing sports and lifestyle footwear market. With increased manufacturing capacity, Lehar Footwear will now be in a stronger position to scale the brand across multiple markets and retail channels.

The new facility is expected to support:

• Larger product launches
• Faster market expansion
• Better inventory management
• Improved supply chain efficiency
• Wider product variety

The sports footwear segment requires continuous innovation and design updates. A modern technology-enabled manufacturing facility can help the company respond quickly to changing consumer preferences.

Strengthening OEM Manufacturing Business

Apart from supporting its own brand growth, the Kundli facility will also strengthen the company’s OEM manufacturing business.

OEM manufacturing involves producing footwear products for other brands and companies. This segment offers stable order volumes and long-term business opportunities.

The new facility’s advanced machinery and scalable production infrastructure may help Lehar attract larger OEM contracts from domestic and international clients.

The company highlighted that the facility will create strong OEM plus brand synergy, allowing it to balance branded sales growth along with manufacturing partnerships.

This dual approach could help reduce business risks while supporting consistent revenue generation.

Strategic Importance of Kundli Location

The choice of Kundli, Haryana, as the location for the new facility appears to be strategically important.

Kundli is located near the National Capital Region (NCR), providing strong logistics and transportation advantages. The region offers excellent connectivity to major North Indian markets and distribution hubs.

Some key benefits of the location include:

• Better road connectivity
• Faster distribution access
• Reduced logistics costs
• Access to skilled workforce
• Improved supply chain efficiency

The proximity to Delhi and other major consumption centres could help the company improve delivery timelines and enhance customer servicing capabilities.

Technology Upgrade to Drive Efficiency

One of the key highlights of the project is the company’s focus on modern manufacturing technologies.

The facility will include advanced machinery for producing sports footwear and EVA-based products. EVA footwear has become increasingly popular due to its lightweight, flexible, and comfortable properties.

Technology adoption is expected to help the company improve:

• Automation
• Production speed
• Material utilisation
• Product precision
• Cost optimisation

Modern manufacturing processes can also reduce defects and improve consistency across large production batches.

This becomes particularly important in sports footwear manufacturing where quality standards and durability expectations are higher.

Chairman Highlights Growth Vision

Commenting on the development, Mr. Raj Kumar Agarwal, Chairman of Lehar Footwears Limited, said that the expansion marks an important milestone in the company’s growth journey.

According to him, the new project will help build scalable and technology-enabled manufacturing capabilities aligned with changing consumer demand in sports and athleisure footwear.

He further stated that the expansion is expected to support the company’s premiumisation strategy and strengthen its positioning across both branded and OEM segments.

The statement reflects management’s confidence in long-term demand growth and the company’s future business potential.

India’s Sports Footwear Market Showing Strong Growth

India’s sports and athleisure footwear industry has emerged as one of the fastest-growing segments within the broader footwear market.

Several factors are contributing to this growth, including:

• Increasing health consciousness
• Growing fitness culture
• Rising disposable incomes
• Expanding urbanisation
• Influence of social media and fashion trends

Consumers are increasingly spending more on comfortable and stylish footwear suitable for everyday use.

The rise of online shopping and digital marketing has further accelerated footwear demand across smaller cities and towns.

Industry experts believe that India’s sports footwear market may continue witnessing double-digit growth over the coming years.

This creates a favourable environment for companies like Lehar Footwear that are expanding aggressively in this segment.

Competitive Landscape in Footwear Industry

India’s footwear market is highly competitive, with several large domestic and international brands competing for market share.

Major organised players continue investing heavily in:

• Branding
• Retail expansion
• Product innovation
• Manufacturing automation
• E-commerce growth

For regional and mid-sized companies, capacity expansion and operational efficiency become critical for staying competitive.

Lehar Footwear’s latest expansion suggests that the company intends to strengthen its competitive position through scale, technology, and product diversification.

The move may also help improve economies of scale, which can support better profitability over time.

Importance of Manufacturing Scale

In the footwear industry, manufacturing scale plays an important role in determining cost competitiveness and market reach.

Higher production capacity allows companies to:

• Reduce per-unit manufacturing costs
• Handle larger order volumes
• Improve supply chain efficiency
• Negotiate better raw material pricing
• Expand market coverage

The proposed 5x capacity increase could therefore become a significant growth driver for Lehar Footwear over the next few years.

If demand continues to grow strongly, the company may benefit from improved operational leverage.

Future Revenue Growth Potential

The expansion project could open several future revenue opportunities for Lehar Footwear.

Potential growth drivers include:

• Increased branded footwear sales
• Expansion of athleisure portfolio
• Higher OEM contract volumes
• Entry into new markets
• Improved distribution network

The company may also benefit from rising consumer preference for domestically manufactured footwear products.

As India pushes for stronger domestic manufacturing under various government initiatives, companies with scalable manufacturing infrastructure could gain long-term advantages.

Operational Challenges and Execution Risks

While the expansion presents strong growth opportunities, there are also execution-related challenges that the company may need to manage carefully.

Some key risks include:

• Delays in project execution
• Rising raw material costs
• Demand fluctuations
• Competitive pricing pressure
• Labour availability
• Supply chain disruptions

Managing large-scale manufacturing operations also requires continuous investment in quality control and inventory management.

However, Lehar Footwear’s phased expansion approach may help reduce some operational risks.

Importance of Brand Building

In the sports footwear category, brand perception plays a critical role in customer acquisition and retention.

Consumers increasingly look for products offering:

• Comfort
• Style
• Durability
• Affordability
• Performance

For Lehar Footwear, expanding the Rannr brand alongside manufacturing growth could become an important long-term strategy.

Strong branding may help the company command better pricing and improve profit margins.

E-Commerce Opportunity

India’s booming e-commerce sector offers another major opportunity for footwear companies.

Online platforms have significantly increased consumer access to footwear brands across Tier-2 and Tier-3 cities.

With higher manufacturing capacity, Lehar Footwear may be able to strengthen its presence across:

• E-commerce marketplaces
• Online brand stores
• Multi-brand retail platforms
• Modern retail channels

Digital marketing and online sales could play an increasingly important role in future growth.

Long-Term Outlook for Lehar Footwear

The new Kundli facility signals that Lehar Footwear is entering a new growth phase focused on:

• Scale expansion
• Technology adoption
• Product diversification
• Premiumisation
• Brand strengthening

If executed successfully, the expansion could significantly improve the company’s market position over the next several years.

The Indian sports and athleisure footwear market still offers substantial untapped potential, especially in smaller cities and emerging consumer segments.

Companies capable of combining affordable pricing with modern designs and efficient manufacturing are expected to benefit the most.

Lehar Footwear’s latest move appears aligned with these industry trends.

About Lehar Footwears Limited

Lehar Footwears Limited is one of the leading regional manufacturers of non-leather footwear products in India. The company has been operating since 1995 and markets its products primarily under the Lehar and Rannr brands.

The company serves customers through multiple channels including:

• Trade distribution networks
• Multi-brand retail outlets
• Export markets
• Government schemes
• E-commerce platforms

Lehar Footwear currently operates manufacturing facilities in:

• Jaipur
• Kaladera (Chomu)
• Kundli (Haryana)

Over the years, the company has focused on building affordable and stylish footwear products for Indian consumers.

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