India has become the latest place to hire the likes of Adidas, as the world’s largest sporting goods manufacturer looks to expand into the emerging apparel market.
The company’s first overseas expansion in the country, which has seen it invest $7 billion in the manufacturing sector, was announced on Thursday by the Indian government as it ramps up its bid to take on its rival Nike.
The move comes as Adidas seeks to build on its strong position as India’s largest apparel brand, having sold more than $3 billion worth of apparel in the past year alone.
A key component of the plan will be expanding its manufacturing facilities in the city of Hyderabad and expanding its existing manufacturing capacity in India.
It will also create jobs in the apparel manufacturing sector in India through its new business development centres, said an official statement.
While Adidas is seeking to expand its existing footprint in India, it will also invest $1 billion in a new manufacturing plant in India that will produce the Adidas X-Series footwear, Adidas India said.
It will employ 2,500 workers across the city and another 3,500 at the new factory.
The announcement comes after the Indian Government said in February it would set up a manufacturing facility to manufacture the Adidas footwear in Hyderabad.
Adidas India is a subsidiary of the German multinational Adidas AG.