In their Indian presence, global apparel manufacturers such as Nike, Adidas, Puma and Reebok have found an Indian door to shoo its success. They have moved towards the south of Vindhyas for the China Plus One Strategy.
On Monday, Taiwan based Pou Chen Corporatuion (Pou Chen)-world’s largest casual and athletic footwear manufacturer had signed a deal with TamilNadu to come up with Rs.2302 crore unit. This will be one of the 6 major which will be setting up in the state.According to the sources, non-leather giants such as Feng Tay Enterprises Co, Hong Fu Group, Dean Shoes group, Oasis footwear, Sports Gear Co, and Zucca will be setting up their units in TamilNadu and have started working on the same. Around 85% of the shoes are non-leather.
On Monday, the government of TamilNadu signed a Memorandum of Understanding (MoU) with High Glory Footwear India which is a subsidry of Pou Chen. With this, there will be an investment of Rs.2302 crre and will generate more than 20,000 jobs for over 12 years.
The units of the non-leather footwear will be set up in the State Industries Promotion Corporation of TamilNadu (SIPCOT) in Ulunderpet, Kallakurchi district. By moving out of China, the factors work as a favour. TamilNadu thus becomes the first state to attract Taiwanese manufacturers.
According to VKC Razak, MD, VKC Group, “ One major reason why the state is attracting a majority of these players is because of a new policy of the sector that came out in 2022. Also, in addition to the state incentives, manufacturers are being offred incentives by the enter as well”.
It also mirrors the apple ecosystem. In 2021-22, India’s non-leather exports was $214 million. This year, it is expected to increase. Leather footwear was @2047 million in the previous year.
Companies like China-based Apache, will be making their presence in TamilNadu. The state is finding a solution by bringing in micro, small and medium enterprises through TFMA
