Japan’s sportswear ASICS to ramp up India manufacturing to 40%

This decision aligns with the current regulatory environment in India, which has compelled international brands to halt footwear imports due to new quality standards, Reuters reported, citing a senior company executive.

The Indian government now requires all footwear, whether produced domestically or abroad, to meet specified quality criteria and obtain certification.

The government has recently imposed a requirement for a Bureau of Indian Standards (BIS) licence on 24 different footwear products. This mandate encompasses footwear crafted from various materials including leather, rubber, polymers, and others.

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has issued three Quality Control Orders (QCOs). These orders have brought a total of 27 products under the mandatory umbrella of BIS certification.

ASICS, which has ceased its imports in response, acknowledges that importing footwear from any nation is currently impracticable without this government approval.

"To address this critical situation, we are strategically developing local production capabilities," ASICS India managing director Rajat Khurana told the news agency.

The company achieved a 30% local production rate for the fiscal year 2024-25, meeting the government's requirement that allows international brands to open and operate their single-brand retail outlets in the country.

With approximately 125 stores operated through franchise partners, ASICS is preparing to launch its first company-owned store in India this year, with potential sites being evaluated near the cities of Delhi and Mumbai.

Over the next few years, the brand intends to establish additional owned stores. It also plans to open three new franchise stores monthly until the year's end.

For the fiscal year 2024-25, ASICS anticipates a revenue increase of between 35%-37% in India, building on a 26% rise from the previous fiscal period that resulted in revenues reaching Rs4.28bn ($49.74m).

ASICS' growth is believed to be partly fuelled by India's expanding interest in fitness and sports like tennis and pickleball among the wealthier urban population.

In the first quarter of fiscal 2025, ASICS recorded net sales of Y208.3bn, a 19.7% increase from the same period a year ago.

"Japan’s sportswear ASICS to ramp up India manufacturing to 40%" was originally created and published by Just Style, a GlobalData owned brand.

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