Campus Activewear acquires land in Pantnagar for ₹74.75 Cr plans ₹230 Cr investment to add 7.2M pairs of footwear capacity by FY28, boosting backward integration.
Acquires 47,000 Sq M Land to Add 7.2 Million Pairs of Footwear Capacity by FY 2027-28
New Delhi, India – In a significant move to bolster its production capabilities and meet surging domestic demand Campus Activewear Limited, a leading name in India’s footwear industry, has acquired land and building at SIIDCUL Pantnagar for ₹74.75 crore. This acquisition is the cornerstone of a larger ₹230 crore investment plan aimed at adding 7.2 million pairs of additional manufacturing capacity by the close of the 2027-28 financial year.
The company purchased the 47,000 square meter property from M/s Nainipanel Industries Private Limited located in the IIE SIIDCUL, Pantnagar Industrial Area. The expansion will focus on increasing the production of semi-finished goods (soles and uppers) and enhancing footwear assembly capabilities.
Strategic Drivers: Backward Integration and Meeting Demand
This expansion is strategically focused on two key objectives:
- Business Growth: To meet the rapidly growing consumer demand for its products in the Indian market.
- Backward Integration: By expanding in-house production of critical components like soles and uppers, Campus reduces dependency on external suppliers, improves cost control, ensures quality consistency, and strengthens its supply chain resilience.
Current Capacity vs. Planned Expansion
The investment will significantly scale Campus’s existing operations:
| Category | Current Capacity | Current Utilization | Planned Addition |
|---|---|---|---|
| Upper | 8.4 million pairs | 80% | 7.2 million pairs |
| Assembly | 30.7 million pairs | 75% | 7.2 million pairs |
The proposed capacity addition is expected to be completed within 2.5 years, starting from September 2025.
Financing and Execution
The company has outlined a clear financial plan for this ambitious project:
- Land Acquisition: The ₹74.75 crore acquisition is an all-cash deal.
- Capacity Expansion: The entire ₹230 crore investment for machinery and setting up the new facility will be funded through internal accruals, reflecting the company’s strong financial health.
- Regulatory Hurdles: The transaction is straightforward, requiring no complex regulatory approvals beyond a standard transfer permission from SIIDCUL.
Positioning for the Future
This expansion underscores Campus Activewear’s deep confidence in the long-term growth story of the Indian footwear market. By investing heavily in backward integration and capacity addition, the company is not just preparing for future demand but is also building a more efficient, integrated, and competitive manufacturing ecosystem.
This move is poised to solidify Campus’s position as a dominant player, enabling it to leverage economies of scale, offer competitive pricing, and maintain its brand promise of quality and innovation in the highly competitive activewear segment.
