With Addidas In, Kothari Industrial Corporation On The Way To Build A Footwear Empire

The century-old Chennai-based Kothari Industrial Corporation Ltd (KICL), a listed company, is making waves in the footwear sector. Ever since the Chairman Dr J Rafiq Ahmed entered the scene, KICL has heavily diversified beyond its traditional agriculture and fertilizer roots into drones, geospatial services and footwear. KICL’s transformation is becoming most visible in the footwear space. Recently, KICL’s associate, Phoenix Kothari Footwear, tied-up with Taiwan’s Evervan Group, one of the world’s largest contract footwear makers, to manufacture Adidas shoes in Karur, Tamil Nadu. The Karur plant, second phase, is being set up at a cost of Rs 1,700 crore and expected to generate 13,500 jobs. It is learnt that over five years the JV is expected to invest $1 billion across the country to produce 100 million pairs of Adidas shoes and generate 50,000 jobs. Interestingly, the second phase of Karur plant’s ground breaking ceremony was done by Tamil Nadu chief minister C Joseph Vijay. It may be mentioned that KICL is not content with being only a contract manufacturer. Some time back, it secured a 30-year license to market the iconic French footwear brand Kickers across India and several neighbouring markets. The company, it is learnt, is now negotiating to acquire the brand’s intellectual property, which would allow production to shift from China to India and give KICL ownership of an established international footwear label. The Indian footwear market is estimated at around Rs 1.2 lakh crore and is growing at roughly 7-8% annually. Premium footwear is expanding even faster, at 12-18%, driven by young consumers and rising disposable incomes.