Taiwanese manufacturer of Nike, Adidas shoes commits $280m for first factory in India
The Taiwanese sports shoe maker says this can be the first of many investments in the country.
Taiwan’s Pou Chen Group, the world’s largest manufacturer of branded sports footwear, pledged to invest INR 23b (about $280m) in India to set up a manufacturing plant in Tamil Nadu, a state located in the southernmost tip of the Indian peninsula.
Through its subsidiary High Glory Footwear, the group signed a structured package agreement with the government of Tamil Nadu on Monday to mark the Indian debut of the company known for manufacturing popular athletic and casual footwears like Nike, Adidas, New Balance and Timberland.
“This is a very important milestone in our company’s history. We hope this will be the first of many investments to come (in India). We look forward to your continued support for our future growth here,” George Liu, vice president of Pou Chen, told Tamil Nadu chief minister MK Stalin in a meeting streamed online.
The investment is expected to create jobs for more than 20,000 employees in the non-leather sector over the next 12 years, especially for people in and around the Kallakurichi District where the plant will be situated.
Pou Chen manufactured and shipped over 272 million pairs of shoes in the financial year 2022, up 14 percent from the year prior. The upcoming Tamil Nadu facility will add to its existing production plants in other parts of Asia, including Taiwan, China, Indonesia, Vietnam, Bangladesh, Cambodia and Myanmar.
Pou Chen is the latest Taiwanese shoemaker to set up shop in India after Hong Fu Industrial Group, a manufacturer of sports brands like Nike and Puma which pledged to establish its own production line in Tamil Nadu exactly a year ago.