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Adidas to set up its first Asia GCC outside China in Tamil Nadu: Report

Jaya Vishwakarma
New Update
adidas gcc chennai

Global sports brand Adidas is reportedly looking to establish its first Global Capacity Centre (GCC) in Asia outside China, in Chennai, Tamil Nadu. 

The move marks a significant step in the company's expansion strategy, focusing on key business processes and leveraging India's vast software expertise. Adidas' Global Business Services (GBS) hub will be under the leadership of Akhil Kapoor, Vice-President of GBS global procurement and head of GBS India.

Chennai as a global hub


According to an ET report, The Chennai centre is designated as a global hub, integrating with Adidas' existing hubs in Porto, Dalian, Bogota, and North America.

The integration reportedly aims to support the company's global operations efficiently. Adidas plans substantial growth for its Chennai centre, intending to recruit high-quality resources over the next three to five years.

Tamil Nadu's growing GCC ecosystem

The establishment of Adidas' GCC in Chennai is seen as a significant boost for Tamil Nadu's growing GCC ecosystem. The state, known for its knowledge hub and manufacturing prowess, has been instrumental in attracting global companies.

Tamil Nadu Industries Minister TRB Rajaa highlighted the state's role as an information center and industrial stronghold, which has been crucial in gaining the trust of investors. The footwear sector in Tamil Nadu, employing a significant number of women, is particularly notable in this trend.

What will be the impact on the local economy and employment

The move by Adidas is expected to create numerous job opportunities, varying from one hundred to two thousand positions.

The development is part of a larger trend observed in the sports brand space, with other major brands like Nike and Lululemon already having established their GCCs in India.

The Chennai GCC is anticipated to start with finance, procurement, and supply chain operations, potentially expanding to include product development and e-commerce platform development.

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