TechnoSport commits Rs 130 crore to expand Erode facility, targets 130 EBOs by FY27
TechnoSport has signed an MoU with the Tamil Nadu government for a Rs 130 crore Phase 2 expansion of its Erode activewear facility. The project is set to raise fabric capacity from 25 to 40 tonnes a day and create more than 500 jobs, while the brand targets about 130 exclusive outlets and Rs 1,000 crore revenue by FY27.
What happened
TechnoSport signed an MoU with Tamil Nadu to invest Rs 130 crore in Phase 2 expansion of its Erode activewear facility, lifting fabric capacity to 40 tonnes
Key facts
- Rs 130 crore Phase 2 investment
- over 500 jobs
- fabric capacity: 25 tonnes/day to 40 tonnes/day
- capacity target by end-FY27
- 16,000+ retail touchpoints
- 20+ states
- 40+ super stockists
- 66+ exclusive brand outlets
- approximately 130 EBOs target by end-FY27
- 25 TechnoSport Express stores
- 25 million+ units sold annually
- FY26 revenue: approximately Rs 600 crore
- FY27 revenue target: Rs 1,000 crore
Why this matters
TechnoSport is building vertically supported scale in activewear, making manufacturing partnerships, sourcing capabilities and regional retail assets increasingly strategic.
What to watch
- Construction and commissioning timeline for Phase 2, including whether 40-tonnes-per-day capacity is operational on schedule.
- Monthly EBO additions, franchisee versus company-owned mix, and evidence that store productivity remains healthy as the footprint expands.
- Revenue run-rate toward Rs 1,000 crore, alongside same-store sales, average selling price and inventory-turn indicators.
- Capacity utilization, raw-material cost trends and gross-margin movement after the expansion.
- Competitor responses from domestic activewear brands, sportswear majors and value-fashion chains through pricing, outlet expansion or athlete-led marketing.
- Progress on the promised 500-plus jobs and any additional Tamil Nadu incentive or compliance disclosures.
- Accelerate EBO openings through a franchise-led model, prioritizing Tamil Nadu, Karnataka, Telangana, Maharashtra and high-growth tier-2 cities.
- Expand assortment in running, athleisure, women’s activewear, innerwear-adjacent categories and value performancewear to raise average transaction value and repeat purchases.
- Secure yarn, polyester, elastane and processing partnerships to protect input availability and margins as fabric capacity rises.
- Invest in demand forecasting, regional warehousing and store replenishment systems to convert manufacturing scale into lower stock-outs and faster inventory turns.
- Use the Tamil Nadu expansion and job creation narrative to pursue state incentives, institutional orders and export customer conversations.