Japan Asics to boost the production of 40% Indian sportswear in the midst of import restrictions, says the Executive

The Japanese sports giant Asics will increase the manufacture of India to 40% from 30% in the coming years to guarantee a constant supply, a senior executive to Reuters told Reuters, since the country's regulations force global brands to stop footwear imports.

The Indian government has ordered certain standards for several footwear segments, which requires that national and foreign manufacturers obtain quality certifications.

Asics, who also has stopped imports, said that bringing footwear from any country is not feasible without government certification.

“To address this critical situation, we are strategically developing local production capabilities,” said Asics India managing director Rajat Khurana.

For the financial year 2024-25, ASICS reached the local production of 30%, a threshold obliged to the government that allows foreign brands to operate their own one-brand stores in India.

The firm, which operates approximately 125 stores through the franchise partners, plans to open its first store owned by the brand this year and is exploring places in Delhi and Mumbai and its surroundings, Khurana said. Its objective is to configure another pair in the coming years.

Asics, which competes with global rivals, including Nike, Adidas and Skechers Usa in India, also plans to open three franchise stores per month between now and end of the year.

By 2024-25, ASICS projected income growth of 35% -37% in India, after 26% jump in the previous fiscal year that increased its income to RS.428 million rupees.

Known for its running shoes, Asics benefits from a growing culture of fitness in India and growing interest in tennis and pickletball among rich urban consumers.

The category of sporting articles and local clothing is expected to double at $ 58 billion by 2030 from 2023 levels, according to a 2024 report of the Deloitte consulting firm.