Phoenix Kothari lines up Rs 5K cr investment in TN footwear industry

J Rafiq Ahmed, managing director, Kothari Industrial Corporation, said the number of employees in Phoenix Kothari is expected to cross 55,000 by 2027

In a sign of Tamil Nadu competing with global footwear clusters like Dongguan in China and Campos Bom in Brazil, Phoenix Kothari Footwear Ltd on Wednesday announced a fresh investment of Rs 5,000 crore in footwear hubs in multiple locations in the state that may create more than 53,000 jobs by 2027.

 

This is in addition to the Rs 5,000 crore investment it had announced in Perambalur, where it has already started manufacturing Crocs brand footwear. The factory at the State Industries Promotion Corporation of Tamil Nadu’s (SIPCOT) industrial park in Perambalur is operated through a company called JR One Footwear, a joint venture initiative between Phoenix Kothari Footwear Ltd. and global major Shoetown.

 

J Rafiq Ahmed, the managing director of Kothari Industrial Corporation, said that the number of employees in Phoenix Kothari is expected to cross 55,000, in addition to around 2,000 already working for JR One, by 2027. "We are planning to invest another Rs 5,000 crore in Erayur and Karur facilities. In Erayur, another 25,000 jobs will be created, while in Karur, we may add another 15,000 people. This is in addition to another 13,000 jobs to be added in our existing unit in Perambalur," Ahmed said. Ahmed currently has a 47.08 per cent stake in the entity.

 

In November 2023, JR One Kothari started a manufacturing plant to produce Crocs brand footwear in Perambalur. In addition to Crocs, it has pacts for manufacturing and distribution of the Kickers brand of footwear in India. The company is in the process of persuading another global major by February 26.

 

Already, premium global brands like Louis Vuitton, Gucci, Prada, and Tommy Hilfiger are produced in Tamil Nadu or source raw materials from the state. The state contributes to over 32 per cent of India's production, and its leather and non-leather footwear exports hold a 48 per cent national share, equivalent to over $2 billion.

 

According to the state government, with a policy rolled out recently that is pushing up its growth, the footwear sector in Tamil Nadu is a mainstay in the state’s industrial growth story.

 

Kothari Group had already persuaded Qatar-based Sheikh Falah Bin Jassin Bin Jabor Al Thani to set up a fertiliser factory in that country. The company was reportedly planning to invest around Rs 7,000 crore in the fertilizer sector.

 

Ahmed said the company was also going aggressively into the drone technology business as there was a huge requirement for drones in agriculture. "I want to create a huge set of drone engineers in the country. We have already applied for a manufacturing licence for drones, and they will be completely Indian-made," he said. The company has already set up its first drone training school in Madurai and has plans to set up more across districts in Tamil Nadu.