Chennai-based Kothari Industrial Corporation Ltd (KICL) is actively engaged in discussions to acquire Kickers, the renowned French footwear and apparel brand, as part of its strategic initiative to build a globally owned Indian footwear portfolio. The company's executive chairman, Jinnah Rafiq Ahmed, revealed this significant development on Thursday, highlighting the corporation's ambitious vision for international brand ownership.
Strategic Expansion Through Brand Acquisition
KICL introduced the Kickers brand to the Indian market in 2024 through a comprehensive 30-year licensing and distribution agreement that covers India and eight neighboring markets: Qatar, the UAE, Saudi Arabia, Nepal, Maldives, Sri Lanka, Bhutan, and Bangladesh. Ahmed emphasized the importance of this move, stating, "We have significant footwear manufacturing capabilities in India, but very few Indian companies own international footwear brands. Even smaller European countries own global brands. Owning an international brand is extremely important for us."
The company is particularly focused on acquiring the intellectual property rights for Kickers, with negotiations currently underway. Ahmed expressed optimism about the outcome, noting, "We are in talks, and hopefully there will be good news that we can announce very soon." This acquisition would represent a major milestone for KICL in establishing a stronger global presence.
Production Shift and Manufacturing Capabilities
Currently, Kickers products are manufactured in China. However, Ahmed indicated that an acquisition would enable KICL to relocate production to India. "Kickers is available across the world. Once we acquire the brand, we can bring the entire production ecosystem to India," he explained. This shift aligns with KICL's existing manufacturing strengths and partnerships.
In the non-leather footwear segment, KICL has formed a strategic partnership with Taiwan-based Evervan–Shoe Town Group, the world's third-largest contract footwear manufacturer, which produces for global giants such as Crocs, Adidas, and Nike. Their joint venture, Phoenix Kothari Footwear, has already established a manufacturing facility in Perambalur, Tamil Nadu, dedicated to producing Crocs footwear. Additionally, another plant in Karur has been completed to manufacture Adidas shoes, with its inauguration expected shortly.
Ahmed highlighted the employment benefits of these projects, stating, "These projects have generated large-scale employment, particularly for women." The two facilities are projected to create approximately 50,000 jobs, contributing significantly to local economic development.
Impact of Trade Agreements on Industry Growth
Ahmed welcomed the recent conclusion of the India–European Union Free Trade Agreement (FTA), noting its potential to substantially boost India's footwear exports. He addressed previous challenges, explaining, "We were facing major challenges due to US tariffs, as nearly 60% of our exports were going to the US. Manufacturers were shifting to Indonesia because it had FTAs with both the US and the EU. However, land and labour are more expensive there compared to India. The EU trade deal opens up huge opportunities for Indian manufacturers, and we hope a trade agreement with the US will also be finalised soon."
N Mohan, director and CEO of KICL, echoed this sentiment, describing the EU FTA as a game-changer for the industry. He pointed out that import duties in Europe are expected to drop from about 17 percent to zero, creating favorable conditions for exports. "With our Taiwanese collaborations, we can add significant value," Mohan added, underscoring the competitive advantage offered by these partnerships.
Market Dynamics and Consumer Trends
Mohan also provided insights into the Indian footwear market, which is estimated to be worth around Rs 1,20,000 crore and is growing at an annual rate of 7%–8%. The premium segment, with products priced at Rs 3,000 and above, is expanding even faster at 12%–18%. This growth reflects the rising aspirations of young, fashion-conscious consumers, indicating a robust demand for quality and branded footwear in the country.
KICL's pursuit of the Kickers acquisition, combined with its strategic manufacturing initiatives and the positive outlook from recent trade agreements, positions the company to capitalize on these market trends and strengthen India's footprint in the global footwear industry.
