Adidas, the renowned German sportswear giant, has inked a lease for its inaugural Global Capability Centre (GCC) in Chennai, India. This pivotal establishment spans approximately 45,000 square feet in Chennai, marking the company’s first such center in Asia outside of China.
Adidas has secured a 700-seater space at Smartworks’ facility in Olympia Pinnacle, situated on the bustling Old Mamallapuram Road (OMR), the largest IT corridor in Chennai’s northern suburbs. The lease agreement, recently finalized, sees Adidas committing to a monthly rent of ₹65/US$0.78 per square foot. This location is set to become a crucial hub for Adidas, facilitating various high-level functions including planning and analysis, invoice-to-cash, record-to-report, and source-to-pay processes.
The decision to establish a GCC in Chennai underscores the strategic importance of India in Adidas’ global operations. India’s allure lies not just in cost efficiencies, but also in its vast and skilled talent pool. By leveraging India’s capabilities, Adidas aims to drive high-tech operations and innovation, aligning with the broader trend of global multinationals establishing GCCs in the region.
According to CBRE India, there were approximately 2,740 GCCs in India as of the fiscal year 2023, highlighting the country’s growing significance as a hub for advanced business processes.
Earlier this year, reports hinted at Adidas’ intentions to set up this GCC, envisioned to become a center of excellence for various critical functions. This move is reflective of Adidas’ broader strategy to optimize operations and enhance efficiencies through centralized capabilities.
The Chennai GCC is expected to play a pivotal role in supporting Adidas’ global functions, driving innovation, and ensuring seamless operations across various business segments.
In conclusion, This strategic move not only enhances Adidas’ operational efficiencies but also underscores the growing trend of multinational corporations investing in India for their advanced business needs. As Adidas embarks on this new journey in Chennai, it sets a precedent for other global giants to explore India’s potential in driving innovation and excellence in their operations worldwide.
