Birkenstock Reportedly Sues Indian Footwear Makers Over Counterfeits Amid Rising Industry Scrutiny

German sandal maker Birkenstock has filed an infringement lawsuit in India's capital, New Delhi, against four footwear traders, four factories, and two unnamed individuals following a company investigation revealed the production, sale, and export of counterfeit products, according to a Reuters report.

The report, which cites people familiar with the matter, comes as the footwear industry is garnering increased attention in India. Earlier this month, Crocs (CROX) secured a court nod to pursue a nine-year-old infringement case. At the same time, Prada drew criticism after its sandals at a Milan showcase looked nearly identical to Indian Khandasari chappals, prompting the Italian fashion brand to acknowledge the similarity.

According to the report, Birkenstock filed the lawsuit in the Delhi High Court in May. It claims that Birkenstock counterfeits were being manufactured in rural areas near the North Indian tourist hub of Agra and sold both locally and exported to other countries. The court has ordered law enforcement inspections of these facilities.

India is a key market for the German brand, which last month opened its 50th standalone store in the country, in the financial capital of Mumbai.

On Stocktwits, the retail sentiment for BIRK remained 'bullish,' unchanged from a week ago. Birkenstock shares are down nearly 14% year-to-date.

The development comes at a time of strength for the company. It recently reported strong results for its fiscal second quarter, raised its annual profit forecast, and authorized a $200 million buyback.

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