Decathlon is gearing up to significantly increase its sourcing from India, with plans to potentially double it to 15% of its global procurement. This strategic shift is contingent upon the finalization of the India-European Union Free Trade Agreement (FTA). The anticipated FTA is expected to revolutionize India's sporting goods production landscape, primarily due to the elimination of export duties.

According to Sankar Chatterjee, the CEO of Decathlon India, if the FTA materializes as expected by December 2025, the Indian production market for sporting goods is poised for substantial growth, especially for Decathlon. Currently, the sporting goods giant sources approximately ₹4,150 crore worth of goods and raw materials from India. Procurement for European markets accounts for roughly ₹2,100 crore (about $250 million) of this total.

The elimination of export duties under the FTA would provide Indian manufacturers with a distinct advantage. Moreover, India's geographical proximity translates to shorter lead times to Europe compared to competitors like Vietnam and Bangladesh. This quicker turnaround could be a game-changer for Decathlon, enabling them to respond more rapidly to market demands and consumer preferences in Europe.

Currently, about 6% of Decathlon's total global sourcing comes from India, which in terms of quantity translates to roughly 100 million units. The company sources a variety of products from India, including textiles like cotton and synthetic apparel, as well as raw materials such as yarn and fabric. With the FTA in place, Decathlon envisions this figure rising to 15% within a year.

Decathlon's commitment to India extends beyond sourcing. The company anticipates India becoming one of its top five markets in the coming years. This expectation is fueled by the increasing adoption of sports and healthier lifestyles among Indian consumers. In line with this growth, Decathlon is also focused on increasing local production to about 90-95 percent, ensuring that its products remain accessible and affordable to the Indian market. Currently, about 60% of the products sold by Decathlon in India are manufactured in India.

The company sees itself playing a pivotal role in expanding the sporting goods market within India. With 122 retail stores already in operation, Decathlon is focused on encouraging more consumers to participate in sports by providing quality goods at reasonable prices. The "Make-in-India" initiative aligns well with Decathlon’s goals, enabling it to leverage its scale to manufacture in India and export globally. In fiscal year 2023, Decathlon India reported sales of approximately ₹3,955 crores, marking a 37% increase. This demonstrates the company's strong growth trajectory and potential in the Indian market.