"Kothari Industrial Corporation and Taiwan’s Shoe Town Group to Expand Partnership with Two New Factories in Tamil Nadu"

Taiwanese company Shoe Town Group, with a $5 billion valuation, and Chennai-based Kothari Industrial Corporation Ltd (KICL) are expanding their partnership with plans to establish two additional factories in Tamil Nadu. The new factories will focus on manufacturing non-leather shoes.

JR One Footwear Pvt Ltd, a joint venture between KICL’s Phoenix Kothari Footwear Ltd and Shoe Town Group, has already invested ₹5,000 crore in a unit in Perambalur district for producing Crocs. The JV also plans to develop a component manufacturing unit in Perambalur, according to J. Rafiq Ahmed, Managing Director of KICL.

“We are exploring two backward districts for setting up units to manufacture shoes for two major brands,” Ahmed revealed, although he did not specify the districts or brands. “Both factories are expected to create nearly 50,000 jobs,” he added.

Ron Chang, Chairman of Shoe Town Group, noted that the group operates 32 factories across countries including China and Taiwan, employing around 100,000 people. “We are adopting a 'China Plus' strategy, with India being a top choice due to its lower labor costs and large workforce,” Chang said.

Shoe Town Group supplies technologically advanced products to global brands such as Nike, Adidas, Crocs, Skechers, and Columbia. Chang was in Chennai for the inauguration of Una Villa, a new bakery-cum-restaurant owned by KICL, marking KICL’s entry into the fine dining sector.

While acknowledging that many companies have shifted production from China to Indonesia, Chang pointed out that Indonesia's high labor costs make India a more attractive option. He also highlighted supply chain issues but expressed confidence that these will be mitigated with the establishment of component clusters in Perambalur.

Chang, a first-generation entrepreneur, emphasized the importance of a strong component ecosystem for the success of a footwear project. He is working with over 18 partners to create an innovative cluster in Perambalur, which he believes will be a significant development in the Indian footwear industry.

HBL