Tamil Nadu Secures Major Footwear Investment From South Korean Manufacturer

Chennai, Aug 4 (KNN) South Korea's Hwaseung Enterprises will invest Rs 1,720 crore to establish a large-scale non-leather footwear manufacturing facility in Gangaikondan, Tirunelveli district.

The investment represents the company's inaugural production base in India and constitutes a significant expansion of Tamil Nadu's export-oriented manufacturing sector.

The proposed manufacturing unit is projected to create approximately 20,000 direct employment opportunities, positioning it among the state's largest job-generating footwear projects.

A memorandum of understanding between Hwaseung and the Tamil Nadu government is scheduled to be signed during the inaugural 'TN Rising' regional investment initiative in Thoothukudi on Monday, according to government sources.

Hwaseung currently serves as a key supplier to international brands including Adidas, operating production facilities across Vietnam, Indonesia, and China.

The company's expansion into Tamil Nadu reflects broader industry trends toward geographical diversification and sustainable manufacturing practices.

State officials view the project as a pivotal development in establishing Tamil Nadu as a global center for non-leather footwear production.

The announcement coincides with increased investment activity in southern Tamil Nadu, where Vietnamese electric vehicle manufacturer VinFast is inaugurated its integrated EV plant in Thoothukudi.

The TN Rising conclave is expected to draw investors, policymakers, sectoral experts, and academic representatives, with additional memorandums of understanding anticipated across sectors including green energy, electronics manufacturing, and skills development.

The conclave series forms part of Tamil Nadu's broader strategy to achieve a USD 1 trillion economy through balanced regional development and sustainable industrialisation, specifically targeting the industrial potential of Tier 2 and Tier 3 locations.

Industries Minister Dr TRB Rajaa emphasised the state's comprehensive infrastructure capabilities, stating that Tamil Nadu's social and industrial infrastructure is so strong, you could close your eyes and place your finger anywhere on the map, and you'd find the location ready for industry.

He noted that the TN Rising conclaves demonstrate that industrial growth extends beyond major cities throughout the state.

Industry department officials indicate that additional memorandums of understanding are expected in the coming weeks, signaling southern Tamil Nadu's emergence as a significant investment corridor.

The state currently contributes 38 percent of India's footwear and leather goods output and is actively accelerating its transition toward non-leather segments, including synthetic and sports footwear.

Recent investments from Taiwanese companies Pou Chen, Feng Tay, and EKFL, which are part of the Phoenix-Kothari Group and supply major brands such as Nike, Adidas, and Crocs, have further strengthened Tamil Nadu's non-leather manufacturing ecosystem.

(KNN Bureau)