According to information released by the Tamil Nadu government, a subsidiary of Pou Chen, the biggest producer of branded sports footwear in the world, will invest ₹23.02 billion to build a manufacturing facility there.
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Almost 272 million pairs of shoes for popular brands including Nike, Adidas, New Balance, and Timberland were made and sent out of the Taiwanese factory in the fiscal year 2022. This represents an increase of approximately 14% compared to the previous year. It already has manufacturing facilities in the countries of Bangladesh, Cambodia, Burma, and Vietnam.
In a conference with Tamil Nadu Chief Minister M.K. Stalin that was aired online, Pou Chen Vice President George Liu remarked, “We hope this would be the first of many investments to come (in India).” The investment, which would take place about a year and a half after Hong Fu Group’s Taiwanese rival signed a contract to invest ₹10 billion to create footwear in the southern state of Tamil Nadu, would result in the creation of almost 20,000 jobs over the course of a period of 12 years.
According to a report published by a government agency, Tamil Nadu was responsible for 45% of India’s footwear exports over the course of the last five years. This was due to the fact that many brands, such as Giorgio Armani and Gucci, made their products or sourced raw materials from within the state. Apple suppliers Foxconn, Salcomp, and Pegatron are among the many large companies that have been growing production in Tamil Nadu and elsewhere in India to reduce their reliance on China and Taiwan.
Separately, it was reported in February by Reuters, citing two local authorities, that Pou Chen intended to eliminate approximately 6,000 positions at its plant in Ho Chi Minh City in Vietnam due to the low demand for its products.
