Kothari Industrial to Invest Rs 7,300 Crore in TN

Chennai, Feb 19 (PTI) Diversified conglomerate Kothari Industrial Corporation Ltd has earmarked about Rs 7,300 crore of investments spread over the next two-three year period to focus on fertiliser and footwear businesses in Tamil Nadu, a top official said.

The investment would see the establishment of a fertiliser production unit in Tamil Nadu at about Rs 1,300 crore, footwear manufacturing facilities in Karur and Eraiyur in Kallakurichi district at around Rs 6,000 crore under the Phoenix Kothari Footwear Ltd, besides an industrial park for footwear and ancillaries in southern Tamil Nadu.

Briefing reporters, newly-appointed Executive Chairman J Rafiq Ahmed said a fertilizer manufacturing plant would be established in Tamil Nadu that would aid the Centre's 'Make in India' campaign as currently fertilizers, including gas, ammonia are imported from overseas.

Qatar-based F J Global and Investment owned by Falah Jassim J M Al Thani, a member of the Royal Family and founding member of Doha Bank, would also join the board of Kothari Industrial Corporation Ltd and the proposal to establish the fertilizer facility would begin in the coming weeks which include meeting of the top state government officials, he said.

The Chennai-headquartered company has identified land for establishment of the fertilizer production facility, he said, without divulging further details.

"We have identified the land for the facility. We will announce it soon. Right now, India is importing a lot of raw materials like gas, ammonia from other markets. We want to produce it here and to serve Prime Minister Narendra Modi's Make in India campaign," he said.

Besides the production of fertilizer, Phoenix Kothari Footwear Ltd which is a joint venture of Kothari Industrial Corporation, would also engage into production of footwear in Karur and Eraiyur in Kallakurichi districts for which signing of memorandum of understanding with a global footwear 'brand' is also expected to take place later this month.

"We will be setting up a footwear manufacturing unit in Karur and another in Eraiyur. The investments for the two factories in Karur and Eraiyur would be about Rs 6,000 crore," he said.

Currently, JR One Footwear Pvt Ltd, which is. a joint venture between Phoenix Kothari Footwear Ltd and Taiwan-based ShoeTown Group produces 'Crocs' range of footwear at a factory in Perambalur district. Kothari Group has partnered with Ron Chang, the Chairman of ShoeTown Group, for manufacturing footwear in the country.

Apart from the two new proposed facilities, Ahmed said an 'industrial park' had also been planned to be established by his company in southern districts which would focus on industries, including footwear and those companies engaged in leather ancillaries and component clusters among others. "We are in talks right now. We are planning to set it up in southern Tamil Nadu," he said without elaborating.

To a query, he said with three footwear manufacturing facilities, the company would be producing about one hundred million pairs of footwear by 2027 and employ about 57,000 people.

"My wish is to bring in more manpower, provide them with proper skills in the footwear industry to become employable," he said.

Ahmed said the company would also set up a drone training school in Tamil Nadu. "We are focusing big on this sector. A lot of people are experimenting with drones these days. In China, women are operating drones. Already, I have applied to get the approval to manufacture drones here," he said.

The school to be established by the company would focus on training students to operate drones and production of drones as it provides abundant opportunity to grow, he said.