Kothari Industrial Corporation Ltd (KICL) is considering a further capital infusion into its associate, Phoenix Kothari Footwear Pvt Ltd, to support the company’s long-term growth and expansion plans across India, particularly in Tamil Nadu.
The proposal, discussed at the board meetings of Phoenix Kothari Footwear and its subsidiaries JR One and Evervan Kothari, will be subject to the necessary corporate, statutory and regulatory approvals.
Expansion plans reviewed
The boards reviewed the progress of ongoing projects and deliberated on the strategic roadmap for future business growth and expansion.
The discussions come soon after the inauguration of Phoenix Kothari Footwear’s integrated footwear manufacturing facility at Karur in Tamil Nadu, a key milestone in the joint venture’s expansion strategy aimed at strengthening domestic manufacturing capacity and creating employment.
Funding options under evaluation
The boards also discussed KICL’s role as a significant shareholder in Phoenix Kothari Footwear and its continued support for strengthening the joint venture.
KICL said it remains committed to supporting the company’s long-term growth strategy and may explore appropriate funding alternatives, including a combination of capital infusion strategies, subject to the requisite approvals and applicable laws, with the objective of positioning Phoenix Kothari Footwear as a leading player in the Indian footwear industry.
The board meeting of Phoenix Kothari Footwear was chaired by Dr. Jinnah Rafiq Ahmed.