Kothari Industrial Corporation Ltd (KICL) has unveiled plans to invest approximately Rs 7,300 crore in Tamil Nadu over the next two to three years, focusing on fertiliser production and footwear manufacturing. This initiative aims to enhance local manufacturing capabilities and reduce dependence on imports.
Fertiliser Production Facility
KICL intends to establish a fertiliser manufacturing plant in southern Tamil Nadu with an estimated investment of Rs 1,300 crore. The facility will produce NPK (nitrogen, phosphorus, and potassium) fertilisers, aiming for an annual capacity of 12 million tonnes. The company has secured long-term contracts for raw materials, including gas, ammonia, and rock phosphate, to support this operation.
Footwear Manufacturing Expansion
Through its joint venture, Phoenix Kothari Footwear Ltd, KICL plans to invest around Rs 6,000 crore in two new footwear manufacturing units. One facility will be established in Karur, and the other in Eraiyur, Kallakurichi district. These units are projected to produce up to 100 million pairs of footwear annually by 2027 and are expected to generate employment for over 50,000 individuals.
Phoenix Kothari Footwear Ltd, a collaboration between KICL and Taiwan’s Evervan Group, has been operational since 2023, producing footwear in Perambalur. The company has dispatched two million pairs of shoes manufactured and sold within India.
Industrial Park Development
KICL is also planning to develop an industrial park spanning 400 acres in southern Tamil Nadu. This park will accommodate manufacturing units for various products, including leather, footwear, and automobile accessories. The project aims to attract component manufacturers and ancillary industries, further bolstering the region’s industrial ecosystem.
Strategic Partnerships and Leadership Changes
In December 2024, Falah Jassim J M Al-Thani, a member of Qatar’s ruling family and a promoter-director of Doha Bank, acquired a 10% stake in KICL through FJ Global and Investment. Al-Thani has been inducted as a director on KICL’s board.
Additionally, J Rafiq Ahmed, who joined KICL as a director in 2017, has been appointed as the executive chairman and managing director following the resignation of Pradip Dayanand Kothari from the positions of chairman and director.
Drone Training School Initiative
KICL is also venturing into the drone sector by establishing a drone training school in Madurai, Tamil Nadu. The school will focus on training individuals in drone operations and manufacturing, aiming to tap into the growing opportunities in this field.
These strategic investments and initiatives underscore KICL’s commitment to enhancing industrial growth and employment opportunities in Tamil Nadu.