Expanding Business in India
Hyosung Corp. announced on Sept. 23 that it has started a full-scale commercial operation of its first Indian spandex plant located in the Auric Industrial Complex near Aurangabad Industrial City in Maharashtra. The plant is capable of producing 18,000 tons of spandex annually and covers an area of about 400,000 square meters.
“We will use the new plant as a base for the Indian market and raise our share of the Indian market from the current 60 percent to 70 percent and expand output to meet future demand and growth of the Indian economy,” a Hyosung official said.
India is the world's second most populous economy with a population of about 1.37 billion people, and the world’s seventh largest economy with a GDP of about US$2.7 trillion. India's Prime Minister Narendra Modi succeeded in winning his second term in May of this year. He is pursuing a policy to foster the manufacturing industry by attracting foreign direct investment with the goal of increasing the manufacturing industry’s contribution to India’s GDP from 16 percent to 25 percent by 2022.
Hyosung entered India in 2007 and established an ultra-high voltage breaker production plant in Pune in 2016. The company generates more than US$300 million in sales annually in India. It has expanded its business by building a spandex plant. Meanwhile, Hyosung is considering building anther spandex plant in the Americas.