The Indian state government announced April 17 that a subsidiary of the world’s largest maker of branded athletic footwear, Pou Chen, will invest 23 billion rupees (€256 million) to set up a manufacturing plant in Tamil Nadu. The Taiwanese footwear maker, which sells brands such as Nike, Adidas, New Balance or Timberland, produced and shipped more than 272 million pairs of shoes worldwide in fiscal 2022, up nearly 14 percent from the previous year. The company already operates factories in China, Bangladesh, Cambodia, Myanmar and Vietnam. It is reportedly acquiring 182.75 acres in a special economic zone being set up in Ulundurpet, Kallakurichi District, Tamil Nadu, by the State Industries Promotion Corporation of Tamil Nadu. According to Inside Retail Asia, approximately 20,000 jobs are expected to be created in Tamil Nadu over a 12-year period. The aforementioned subsidiary of Pou Chen is most likely Yue Yuen Industrial (Holdings) Ltd.
Tamil Nadu accounted for 45 percent of India’s footwear exports over the past five years, with many brands manufacturing their products in the state or sourcing raw materials from there, according to a government agency. Other global companies such as Apple suppliers Foxconn, Salcomp and Pegatron have also expanded production in Tamil Nadu and across the country as they seek to diversify their manufacturing base away from China and Taiwan. India offers a large labor supply and government policies favorable to manufacturers. Pou Chen’s new plant will help the group to further diversify production.
