Tamil Nadu Becomes a Global Footwear Manufacturing Hub with US$ 477.90 Million Investment
Team FS
18/Nov/2024

Tamil Nadu is quickly becoming a key manufacturing hub for several major global non-leather footwear brands, including Nike, Adidas, Puma, New Balance, and Reebok. This shift is part of the brands' "China Plus One" strategy, aimed at diversifying their supply chains and reducing reliance on China. As a result, over six international suppliers are now setting up operations in the state, seeking to capitalize on its growing footwear ecosystem.
A major part of this expansion is the partnership between Kothari Industrial Corporation and the Tamil Nadu government, which is set to support the growing footwear industry by introducing 19 raw material suppliers from countries such as Taiwan, Vietnam, China, and Portugal. This initiative is expected to attract a significant investment of Rs 4,000 crore (approximately US$ 477.90 million) and create approximately 50,000 jobs in the state, which already accounts for 32% of India's footwear manufacturing sector.
Among the new entrants is Taiwanese company Dean Shoes, which recently laid the foundation stone for its manufacturing unit in Ariyalur, Tamil Nadu. This unit is expected to bring an investment of Rs 1,000 crore (around US$ 119.47 million) and generate another 50,000 jobs in the region. Pou Chen Corporation and Hong Fu Industrial Group, other prominent manufacturers, are also in the process of setting up units in Tamil Nadu, further solidifying the state’s position as a footwear manufacturing powerhouse.
Tamil Nadu's favorable footwear policy and the region's established presence in the industry have made it an attractive destination for international footwear brands. The Indian footwear market is currently valued at US$ 26 billion and is projected to grow to US$ 90 billion by 2030, with Tamil Nadu poised to capture a significant share, particularly in the non-leather segment.
This growing investment and job creation in the state are expected to play a crucial role in the growth of India's footwear sector, making Tamil Nadu an essential part of the global supply chain for non-leather footwear products.
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