Bengaluru: Sporting goods retailer Decathlon has announced a plan to more than triple its sourcing from India to over USD 3 billion over the next five years. The initiative will supply both domestic and global markets and is set to raise India’s share of the company’s global production from 8 to 15 per cent.
The move coincides with Decathlon’s 25th anniversary of production in the country. India is currently one of the top four sourcing countries for the company.
“3 billion is a significant goal in next five years and also it is increasing the global share of 8% of present sourcing for the world become 15% for future. So for us, it’s a very important announcement,” said Sankar Chatterjee, CEO, Decathlon Sports India.
To achieve this target, which represents a major increase from the current USD 400 million annual sourcing level, Decathlon will expand its manufacturing operations. The strategy includes scaling up existing textile production and developing capabilities for new product categories.
“We are also creating new capabilities for different processes. In Decathlon, our portfolio of the product is not limited to textile. It also includes football, rugby ball, etc,” Chatterjee noted, stating that India already fulfills over 60 per cent of Decathlon’s global requirement for rugby balls. The company will also utilize its local Design Centre to develop products for the Indian market and export.
This increase in manufacturing is also linked to the company’s retail expansion in India, which ranks as one of its top eight global markets. “One of the very important factors for India ‘Make in India‘ growth will be linked with India retail. So when retail grows significantly… that is going to make ‘Made in India’ more successful,” Chatterjee explained.
Decathlon operates 132 stores in 55 Indian cities and plans to open 10 to 15 new stores annually. The company is also modernising its existing stores.
The expansion is supported by market trends, with the company observing a rise in demand for technical and higher-range products. “We are seeing the demand for the top range of products and technical products in India of different sports segments is increasing. That means Indian customers are looking towards adapting more technical sports,” said Chatterjee.
Decathlon India‘s revenue exceeded Rs 4,000 crore in FY24.
