ASICS Expands Local Production in India - News

ASICS, a Japanese sportswear brand, is planning to increase its manufacturing capacity in India from 30 percent to 40 percent in the coming years to ensure a steady supply chain. This decision follows new Indian government rules requiring all footwear—domestic or imported—to meet specific quality standards and obtain certification.

The government recently introduced a mandatory requirement for a Bureau of Indian Standards (BIS) license for 24 types of footwear crafted from various materials such as leather, rubber, polymers, and more. These regulations, issued under three Quality Control Orders (QCOs) by the Department for Promotion of Industry and Internal Trade (DPIIT), now cover 27 footwear products in total under the BIS license requirement.

In response, the brand has halted importing products and has shifted its focus. According to Rajat Khurana, Managing Director, ASICS India, the company addressed this crucial situation by strategically developing local production capabilities. On that note, the company achieved 30 percent local production for FY 2024-25, meeting the minimum requirement to operate single-brand retail outlets in India. 

Currently, ASICS has around 125 franchise-operated stores and plans to establish its first company-owned store this year, likely to be situated near Delhi or Mumbai. More such stores are expected to follow, along with the addition of three new franchise outlets each month until the end of 2025.

ASICS expects 35 percent to 37 percent revenue growth in India this fiscal year, an increase from last year’s 26 percent rise, which brought revenues to INR 4.28 billion (US$ 49.74 million). The company attributes the growing interest in sports like tennis and pickleball among urban consumers as the key driver of this demand.