TAMIL NADU:
A new factory near Chennai is set to start making popular foam footwear Crocs in India as the brand tries to diversify its manufacturing beyond China and Vietnam.
JR One Footwear, a joint venture between Phoenix Kothari Footwear and Shoetown Footwear, will start manufacturing ‘Crocs’ at its new factory near Chennai from November 28, 2023.
The foundation stone for the factory was laid by Tamil Nadu Chief Minister M K Stalin in 2022. “The (Tamil Nadu) factory has been built in a record time of one year. This stands as a testament to the dedication and efficiency of the Phoenix Kothari Footwear team and its commitment,” said Phoenix Kothari Footwear Chairman J Rafiq Ahmed in a statement.
The new factory, which will specialise in making Crocs, is opening about a year after Tamil Nadu became the first state in the country to launch an exclusive footwear and leather goods policy. It is spread across 50 acres within a footwear park developed by Phoenix-Kothari Footwear at SIPCOT Industrial Park in Perambalur — about 250 kilometres to the south of Chennai.
The factory is expected to generate 4,000 jobs. The Phoenix Kothari Footwear park, which has tied up with internationally renowned brands such as Nike, Adidas, Skechers and Puma, among others, is estimated to create more than 50,000 jobs totally. “The Perambalur footwear cluster is expected to provide significant job opportunities for women. This is also expected to give a big push to the social development goals of the state,” Ahmed added.
The integrated cluster is expected to promote self-sufficiency by reducing import reliance and fostering indigenous footwear production. With the big international brands seeking to rely less on China in the post-Covid era, it is also expected to position itself as a footwear production hub.
Phoenix Kothari Footwear Limited is promoted by both Kothari Industrial Corporation Limited and Taiwan’s Evervan Group. The business committed to investments totalling Rs 1,700 crore when it signed a memorandum of understanding with the government’s agency to promote investments in the state Guidance Tamil Nadu in August 2022.
In August 2022, Tamil Nadu unveiled a Footwear and Leather Products Policy 2022, through which it aims to attract investments to the tune of ₹20,000 crore and create over two lakh jobs. This policy will be valid till March 31, 2025, and will be periodically revised.
source: http://www.businesstoday.in / Business Today / Home> News> Latest> Corporate / by Vidya S / November 17th, 2023