TechnoSport Signs INR 130 Crore MoU for Erode Expansion
20 August 2026: TechnoSport signed an MoU with the Tamil Nadu government in Chennai on August 13, 2026, committing INR 130 crore to Phase 2 of its Erode manufacturing site. The TechnoSport Erode expansion is expected to add more than 500 jobs and raise activewear fabric capacity by the end of FY27. The agreement was exchanged at the first Vettri Tamil Nadu Investment Conclave, held under Chief Minister C. Joseph Vijay. The MoU sets out a proposed investment and expansion plan; it does not mean the new capacity or jobs are already in place.
What does the TechnoSport Erode expansion include ?
TechnoSport plans to spend INR 130 crore on the second phase of its existing Erode facility. The company expects the project to create more than 500 jobs in Tamil Nadu.
| Measure | Company-stated plan |
|---|---|
| Investment | INR 130 crore for Phase 2 |
| Fabric capacity | Increase from 25 to 40 tonnes per day |
| Target date | End of FY27 |
| Employment | More than 500 projected jobs |
The capacity figures refer to activewear fabric manufacturing. A rise from 25 tonnes to 40 tonnes per day would add 15 tonnes of daily capacity if the project reaches the company’s stated target.
Why is TechnoSport expanding manufacturing in Tamil Nadu ?
TechnoSport says it uses a vertically integrated model covering fabric development, production and quality control. The Erode project is meant to increase the supply of functional activewear as the company grows its retail network. TechnoSport also operates a manufacturing facility in Tiruppur, Tamil Nadu.
Sunil Jhunjhunwala, co-founder and managing director of TechnoSport, said Tamil Nadu has played an important role in the company’s manufacturing operations. He described the Erode investment as the next stage of TechnoSport’s growth in the state, with employment and production among the intended outcomes.
How does the investment fit TechnoSport’s FY27 plans ?
The manufacturer says it reaches more than 16,000 retail touchpoints in over 20 states through a network of more than 40 super stockists. It also reports more than 66 exclusive brand outlets and 25 TechnoSport Express stores. TechnoSport plans to raise its exclusive outlet count to about 130 by the end of FY27. A company-supplied brand-promotion report says it sold more than 25 million units annually and recorded about INR 600 crore in FY26 revenue. It has set an INR 1,000 crore revenue target for FY27. These sales and revenue figures remain company-reported rather than independently audited numbers in the available coverage.
What happens after the MoU ?
The immediate milestone is execution: spending the planned capital, completing Phase 2 and commissioning the added fabric capacity. Until then, the 40-tonne daily capacity and more than 500 jobs should be read as targets, not completed outcomes. The expansion would tie factory output to TechnoSport’s retail push if both plans remain on schedule. It would also increase the company’s manufacturing base in Tamil Nadu across Erode and Tiruppur.
FAQs ….
How much is TechnoSport investing in Erode ?
TechnoSport has signed an MoU for an INR 130 crore investment in Phase 2 of its existing Erode manufacturing facility.
How many jobs could the Erode project create ?
The company expects the expansion to generate more than 500 jobs. The figure is a projection linked to the planned project, not a count of jobs already created.
What capacity is TechnoSport targeting ?
TechnoSport plans to raise activewear fabric manufacturing capacity from 25 tonnes per day to 40 tonnes per day by the end of FY27.
