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