From MoU to production in 12 months: Crocs footwear plant sets benchmark
Chennai, Tamil Nadu, India
Contributing to 32% (one-third) of India’s production and home to premium brands, and with a policy rolled out last year that is pushing up its growth, the footwear sector in Tamil Nadu is a mainstay in the State’s industrial growth story.
Since the unveiling of Tamil Nadu Footwear & Leather Products Policy, 2022, MoUs for investment projects worth Rs. 2,250 crore have been signed. In addition, the State has a complete dominance with a 48 % share in leather and non-leather footwear exports.
Premium Crocs Brand Footwear:
Further, backed by full government support, including land availability and creating top-class infrastructure, industries can commence production in double-quick time. JR One Kothari Footwear Private Limited will soon begin production of Crocs brand of footwear by the end of this month, one year after its initial contact with the government.
The Government of Tamil Nadu’s Department of Industries, Investment Promotion. and Commerce’s meticulous planning, facilitation, consistent interaction with investors, and ensuring facilities begin production as per schedule is yielding results.
4,000 jobs:
A year ago – on November 28, 2022, Honourable Chief Minister Thiru M.K.Stalin laid the foundation for the factory and the inauguration of the same is slated for the 28th of this month. When it enters full capacity production, the factory will generate jobs for 4,000 people directly and indirectly in the region.
JR One Footwear Pvt. Ltd is a joint venture initiative between Phoenix Kothari Footwear Ltd. and Shoetown, and its factory is in State Industries Promotion Corporation of Tamil Nadu’s (SIPCOT) industrial park, Perambalur.
The factory, commissioned in 12 months from the date of conceptualisation, is a fine example of government-industry collaboration to execute projects in a record time.
The cluster, when fully commissioned, will be a game changer in footwear manufacturing in the country. Along with similar clusters like Dongguan in China and Campos Bom in Brazil, Tamil Nadu will find itself firmly on the World Footwear Map as the most preferred destination.
Guidance – the Investment Promotion Agency of Tamil Nadu, played a vital role in this development. The agency offers single window facilitation, industrial approvals assistance, business support services, and location assessment. In addition, its investor helpdesk (Biz Buddy) helps investors establish their businesses swiftly as part of Guidance’s comprehensive services.
A note on the Footwear sector in Tamil Nadu:
Tamil Nadu’s Footprint:
- Contributes over 32% of India’s production.
- The State’s leather & non-leather footwear exports hold a 48% national share, equivalent to over $ 2 billion.
- Premium brands like Louis Vuitton, Gucci, Prada, and Tommy Hilfiger are produced in Tamil Nadu or source raw materials from the State.
Institutional Support & Research:
- Tamil Nadu, in collaboration with the Council for Leather Exports (CLE), strives for a sustainable ecosystem in footwear manufacturing.
- Prominent research and design institutions in the State include:
- Central Leather Research Institute (CLRI)
- Footwear Design & Development Institute (FDDI)
- Central Footwear Training Institute (CFTI)
- National Institute of Fashion Technology (NIFT)
Infrastructure & Policy:
- Tamil Nadu houses leather clusters like Ranipet, Ambur, and Vaniyambadi and has recently established a mega Footwear Park at Panapakkam, Ranipet District.
- The State rolled out the Tamil Nadu Footwear & Leather Products Policy 2022 and has exchanged MoUs worth Rs. 2,250 cr.
Non-Leather Segment:
- There is a rising trend in non-leather footwear investments in Tamil Nadu from global contract manufacturers.
- Notable companies operating in Tamil Nadu include Feng Tay (contract manufacturer for Nike) from Cheyyar and Bargur, along with Taiwanese footwear giants like Pouchen and Phoenix-Kothari group.
Employment Potential:
- The Department for the Promotion of Industry and Internal Trade (DPIIT) suggests the footwear sector can yield 250 jobs for every Rs.1 crore investment.
- Footwear sectors generates jobs in large numbers. Manufacture and sales of 1,000 pairs of footwear daily in India can generate around 425 jobs across manufacturing, retail, and related sectors.
Reacting to the launch of production at a factory of a global scale just a year after its MoU with the government, Honourable Industries, Investment Promotion, and Commerce Minister Dr. T.R.B. Rajaa said: “JR One Footwear commencing production in just one year since the signing of MoU with the Government of Tamil Nadu speaks volumes about the pace and passion with which this government, under the leadership of Honourable Chief Minister of Tamil Nadu Thiru. MK Stalin, facilitates the needs of our investors. Tamil Nadu has earned global praise for its proactive approach to fast-tracking the opening of industrial units.”
“The progress this government is making in the non-leather footwear sector is a testament to our commitment towards increasing employment in the state through geographically uniform and shared growth. This will also play a key role in achieving our Honourable Chief Minister’s ambition of a One Trillion Dollar economy in the State.”
