S. Korea's Hyosung to set up its first span­dex unit in In­dia

Apparel Online - - Tex-file -

The world’s lead­ing span­dex man­u­fac­turer, South Korea’s Hyosung Cor­po­ra­tion is com­ing up with its firstever span­dex man­u­fac­tur­ing fa­cil­ity in In­dia by 2019. The move will en­able the com­pany to en­trench well for fur­ther pen­e­tra­tion into the In­dian mar­ket. The com­pany has ear­marked US $ 200 mil­lion as the ini­tial out­lay for the next 5 years and its new unit in In­dia, sources in­formed Ap­parel On­line. Ad­di­tion­ally, Hyosung is re­port­edly look­ing to ac­quire a 40ha site in the AURIC in­dus­trial com­plex near Au­rangabad in Ma­ha­rash­tra. Fur­ther in­vest­ments will be made depend­ing on the mar­ket de­mand and growth pro­jec­tions.

Markedly, Hyosung has al­ready been present in In­dia through a trad­ing firm in New Delhi. Its span­dex brand ‘Cre­ora’ com­mands roughly 60% of the coun­try’s mar­ket share. As of now, the brand’s fo­cus lies in Is­lamic wear like the hi­jab, lin­gerie, sports­wear, denim and di­a­pers. How­ever, come 2020, the com­pany plans to also en­ter the high-value-added pre­mium mar­ket once the new man­u­fac­tur­ing fa­cil­ity is to­tal­ly­op­er­a­tional. It is also look­ing to for­tify its mar­ket supremacy and en­hance prof­itabil­ity by grow­ing its mar­ket share to 70%.

Im­por­tantly, set­ting up its own span­dex man­u­fac­tur­ing in In­dia is part of Hyosung’s world­wide ex­pan­sion strat­egy wherein the com­pany will pro­mote Hyosung Viet­nam as the global base for mak­ing core prod­ucts (span­dex and tire cords) to tap Europe and Asia, whilst Hyosung In­dia will fa­cil­i­tate wider ac­cess to the big do­mes­tic mar­ket.

Also, the com­pany has been quite mind­ful with re­gard to the se­lec­tion of the lo­ca­tion for its maiden man­u­fac­tur­ing plant in In­dia. No­tably, the state of Ma­ha­rash­tra ac­counts for over 50% of coun­try’s fi­bre pro­duc­tion and makes an ideal choice, there­fore. Hyosung Chair­man Cho Hyun-joon met with In­dian PM Naren­dra Modi a few days back and was re­port­edly quoted as say­ing, “In­dia is the world’s largest tex­tile mar­ket and I am ex­pect­ing that the size of its con­sumer mar­ket will grow re­mark­ably. As Hyosung was able to build the new plant, thanks to the In­dian Gov­ern­ment’s full sup­port, I an­tic­i­pate that Hyosung and the In­dian econ­omy will flour­ish to­gether.”

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