Pou Chen, Maker Of Nike And Adidas Shoes, Will Invest Nearly $281 Million In India

The Indian state government said on Monday that a subsidiary of Pou Chen, the biggest maker of branded sports footwear in the world, will invest 23.02 billion rupees ($280.86 million) to build a manufacturing plant in Tamil Nadu.

Over 272 million pairs of shoes were manufactured and shipped internationally in the financial year 2022 by the Taiwanese footwear manufacturer for brands including Nike, Adidas, New Balance, and Timberland, an increase of over 14% from the previous year. It already has facilities in Vietnam, Cambodia, Myanmar, Bangladesh, and Cambodia.

George Liu, vice president of Pou Chen, stated in a meeting with M.K. Stalin, chief minister of Tamil Nadu, that was webcast online, "We hope this would be the first of many investments to come (in India)," 

The investment would come almost a year after Taiwanese peer Hong Fu Group agreed to invest 10 billion rupees to produce footwear in the southern state, which would result in the creation of around 20,000 jobs in Tamil Nadu over a period of 12 years.

According to a government agency report, Tamil Nadu produced 45% of India's footwear exports during the previous five years and several companies, like Giorgio Armani and Gucci, generated their products or sourced their raw materials from the state.

As they seek to diversify their manufacturing footprint away from China and Taiwan, other major brands like Apple suppliers Foxconn, Salcomp, and Pegatron have also been increasing their production in Tamil Nadu and the rest of the nation.

Separately, a media agency reported in February, citing two local officials, that Pou Chen planned to reduce approximately 6,000 positions at its Ho Chi Minh City facility in Vietnam due to poor demand.

The largest maker of branded sports and casual footwear in the world, Pou Chen Group, serves as an OEM/ODM for well-known international brand names including Nike, adidas, Asics, New Balance, Timberland, and Salomon. The Group is a multi-brand provider with exceptional flexibility and a production expertise that has excelled time and time again.

The Pou Chen Group invests in and produces nearly all of the raw materials used in the footwear industry to ensure a steady supply of essential components. This fully integrated supply chain also helps the Group to raise the standard of its products as a whole. In the meanwhile, the Group has been successful in combining its expertise and technology to forge its own competitiveness in the footwear industry. The Group continues to concentrate on producing footwear that encourages its clients to concentrate their efforts on marketing and branding as a reliable and close partnership with international brand name firms.