A subsidiary of a Taiwanese sports shoe manufacturer that makes footwear for brands like Nike, Adidas and New Balance is set to invest in a new manufacturing plant in Tamil Nadu for which a sum reported to be around ₹2,302 crore has been earmarked.
What Happened? The government of Tamil Nadu has announced that Pou Chen, the world’s largest branded sports footwear manufacturer, will invest $280.86 million (₹2,302 crore) to establish a manufacturing facility in Tamil Nadu.
The Taiwanese company, which makes shoes for global brands like Nike, Adidas, and Timberland, already operates factories in Bangladesh, Cambodia, Myanmar, and Vietnam.
In a meeting with Tamil Nadu Chief Minister M.K. Stalin streamed online, Pou Chen’s Vice President, George Liu said that they expect this to be the first of many investments in India. This investment is expected to create 20,000 jobs in Tamil Nadu over the next 12 years.
See also: Apple’s India Plans Get Boost As ₹8,000-Crore iPhone Plant In Bengaluru Gets Go-Ahead
It is worth noting that over the last five years, Tamil Nadu has accounted for 45% of India’s footwear exports, with brands like Gucci and Giorgio Armani sourcing raw materials or manufacturing their products in the state.
Additionally, global companies such as Apple suppliers Pegatron, Foxconn, and Salcomp have been increasing their production in Tamil Nadu and India to diversify their manufacturing footprint away from China and Taiwan.
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