Kothari Industrial Corporation Limited ( kothari industrial corporation ) is considering a potential capital infusion into its associate company, Phoenix Kothari Footwear Private Limited, to accelerate growth and expand its operational footprint across India. This strategic move aims to strengthen the joint venture’s market position, with a specific focus on increasing presence in the State of Tamil Nadu. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following board meetings held on July 30, 2026.

The Board of Directors of Phoenix Kothari Footwear Private Limited, along with its subsidiaries JR One and Evervan Kothari, convened to review ongoing project progress and deliberate on the strategic roadmap for future expansion. Dr. Jinnah Rafiq Ahmed, Chairman of Phoenix Kothari Footwear, chaired the meeting. The discussions highlighted Kothari Industrial Corporation’s role as a significant shareholder and its commitment to supporting the long-term growth strategy of the footwear business.

Strategic Initiatives and Funding

The Board deliberated on various strategic initiatives designed to enable Phoenix Kothari Footwear to emerge as a leading player in the Indian footwear industry. A key outcome of these deliberations was the possibility of further capital infusion by Kothari Industrial Corporation. This funding would be structured through appropriate alternatives, potentially including a combination of fund infusion strategies.

Any such financial support is contingent upon obtaining the requisite corporate, statutory, and regulatory approvals. The company emphasized that these steps are necessary to comply with applicable laws while ensuring the joint venture has the resources needed for expansion.

Growth Focus on Tamil Nadu

The expansion plans specifically target the State of Tamil Nadu, indicating a regional focus for the immediate growth phase. By strengthening its footprint in this key market, Phoenix Kothari Footwear aims to leverage local demand and supply chain efficiencies. Kothari Industrial Corporation remains committed to facilitating this growth, viewing the associate company as a critical component of its broader industrial portfolio.

What the Numbers Show

While no specific financial figures were disclosed in this update, the strategic intent to explore capital infusion signals confidence in the associate company’s growth trajectory. The focus on Tamil Nadu suggests that regional market dynamics are driving the expansion strategy. Investors should monitor subsequent filings for details on the structure and amount of any proposed funding, which will require formal approvals before implementation.

Kothari Industrial Corporation has incorporated Kothari Industrial IUAD Design Private Limited, a joint venture with Accademia IUAD, Italy, to establish an international design institution in India. The company holds a 51% stake in the subsidiary, which was incorporated on July 27, 2026. This strategic move targets the higher education sector, aiming to launch India’s first international design university campus from Italy, offering globally recognized degrees and research opportunities in creative disciplines.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Anil Kumar Padhiali, Company Secretary and Compliance Officer, signed the intimation to the Bombay Stock Exchange on July 28, 2026. This follows an earlier Board approval disclosed on November 29, 2025.

Subsidiary Structure and Investment

Kothari Industrial IUAD Design Private Limited (CIN: U85499TN2026PTC195911) operates in the education industry. As a newly incorporated entity, it has no business operations or turnover as of the date of incorporation. Kothari Industrial Corporation subscribed to 25,50,000 equity shares of ₹10 each at par, aggregating to ₹2,55,00,000, representing its 51% paid-up equity share capital. The consideration was provided in cash.

Campus Location and Academic Model

The campus will be located in Hosur, Tamil Nadu. SIPCOT has allotted Plot No. 14, measuring 3.34 acres, with a built-up area of 1,14,656 sq. ft., at Shoolagiri, Krishnagiri District. The land is leased for a period of 45 years specifically for establishing the proposed campus.

The institution proposes a unique "Learning by Doing" model, where approximately 30% of learning takes place through classroom teaching and design studios, while the remaining 70% is devoted to practical learning on industry-simulated production floors and prototyping laboratories. The collaboration with Accademia IUAD marks the Italian institution's first entry into India.

Programmes and Strategic Vision

The primary objective is to impart skill development and research in fields such as Footwear Design, Textile Design, Fashion Design, Jewellery Design, Cinematography, Product Design, and Communication Design. Additional proposed programmes include Leather Goods and Accessories Design, Apparel Design, Furniture and Interior Design, Visual Communication, Fashion Management, and Lifestyle and Luxury Product Design.

Jinnah Rafiq Ahmed, Chairman of the initiative, stated that the vision is to build a globally respected centre of excellence that shapes the future of design education in India. The institution aims to transform India’s image from a contract manufacturing destination to a nation celebrated for design excellence and brand creation. Students will benefit from international student and faculty exchange programmes, collaborative global design projects, and academic pathways leading to postgraduate programmes in Italy.