Paragon steps beyond core market with Eeken, expansion strategy

Paragon Footwear, long synonymous with affordable, durable offerings, is sharpening its focus on premiumisation, as it looks to capture younger consumers, without straying from its value-driven roots. With over five decades in the market, the Bengaluru-headquartered company is betting on its sub-brand Eeken to tap into demand from urban consumers aged 20-30 seeking stylish yet accessible options.

This push is part of a broader strategy that includes expanding exports, strengthening its white-labelling business, and scaling up Exclusive Brand Outlets (EBOs), all aimed at driving 12-15% revenue growth in the coming years.

The company reported revenues of Rs 1,652.1 crore in FY25, and returned to profitability with a net profit of Rs 35.4 crore, according to Tracxn.

“Our main brand, Paragon, caters to open footwear, while Eeken has been growing at 35-40%. Its revenue contribution is about 5% today, but there is significant headroom,” said Sidharth Zacharia Vijoo, Executive Vice-President – Production, Paragon Footwear.

Launched in 2019, Eeken gained traction after the pandemic, as consumer preferences shifted towards comfort, design, and versatility. The brand offers sports shoes, clogs, flip-flops, sandals, and women’s and kids’ footwear, typically priced between Rs 800 and Rs 1,500.

“Premiumisation is visible across segments. While the mass market focuses on utility, comfort and design are now equally important. Eeken targets a younger, more urban audience that values trendiness, but remains price-conscious,” Vijoo told DH.

Currently focused on Tier-1 cities, Eeken is also seeing growing interest from Tier-2 markets. The brand is expected to reach an output of about 4,000 pairs per day, with around 20 new designs introduced each month. With a distribution network of nearly 500 partners, Paragon expects Eeken to achieve Rs 120 crore in turnover this fiscal.

Founded in 1975 in Kerala, Paragon began as a manufacturer of rubber chappals and expanded nationwide by 1982. Its blue-and-white Hawai chappals became a staple across India, alongside a strong presence in school shoes. Today, the company produces around 5 lakh pairs daily, translating to over 14 crore pairs annually, across 26 facilities in Kottayam, Salem, Bengaluru, and Hyderabad, using materials such as PU (Polyurethane), PVC (Polyvinyl Chloride), and EVA (Ethylene Vinyl Acetate).

Focus on exports

Leveraging this scale and expertise, Paragon is accelerating its push into exports and white-labelling. The company has already partnered with international players such as Germany’s Deichmann and is in discussions with additional European brands.

“Exports have been a focus only in recent years, but the opportunity is significant. The pandemic disrupted supply chains in China, prompting global brands to diversify sourcing. India has emerged as a viable alternative,” Vijoo noted, adding that many companies are looking to reduce their dependence on China.

White-labelling, where manufacturers produce goods that are rebranded by retailers, is central to this strategy, allowing Paragon to expand globally without building standalone brand recognition in every market.

As of early 2026, Paragon exports to 19 countries, including the UAE, Qatar, Oman, Saudi Arabia, Kuwait, and the US. However, exports still account for less than 1% of total revenue, leaving ample room for growth. The company is also optimistic about potential gains from free trade agreements, particularly with the EU, though geopolitical uncertainties remain a concern.

Domestically, Paragon continues to rely on its strong presence in the mass market, where affordability remains critical, especially in Tier-2 and 3 cities. Its core portfolio still caters to consumers seeking durable footwear in the Rs 150-400 range.

“We operate across segments because price sensitivity remains high in India. At the same time, there is a gap in the mass-market sports footwear space, which we are keen to address,” Vijoo said, noting that of the 5 lakh pairs produced daily, about 4.7 lakh are open footwear.

India’s footwear market, valued at $18-26 billion in 2024-2025, remains dominated by the sub-Rs 1,000 segment and a large unorganised sector, even as premiumisation gathers pace.

To strengthen its retail footprint, Paragon is expanding its network of EBOs, currently numbering around 70 in India. The company plans to add at least 50 more exclusive outlets this year, primarily in southern and western regions, with a growing focus on a Franchisee-Owned, Franchisee-Operated (FOFO) model.

It is also refurbishing existing stores and onboarding new franchisees, while quick commerce is emerging as a key growth channel, contributing about half of its e-commerce revenue, driven largely by everyday products like chappals, flip-flops, and basic sneakers.