Located in the AURIC Industrial Complex near Aurangabad, the new 400,000-square-meter plant can produce 18,000 tons of spandex annually. With a population of more than 1.37 billion, India is the seventh largest economic power in the world, with gross domestic product (GDP) of approximately $2.72 trillion, Hyosung said.
That’s why building the new plant is a cornerstone for augmenting the company’s presence in India. Hyosung said it aims to increase its spandex market share to 70 percent from the current 60 percent.
Hyosung, based in Seoul, South Korea, had previously said it was making a $100 million investment in India in an effort to increase its spandex market share.
“Adopting an aggressive marketing strategy in the huge consumption market of India with a population of over 1.3 billion, we will promote symbiotic growth with the local industry,” Hyosung chairman Cho Hyun-joon said.
Indian Prime Minister Narendra Modi is actively implementing a policy that fosters the manufacturing industry, while encouraging foreign direct investment, Hyosung said. The goal is to raise the contribution rate of the manufacturing industry to GDP by25 percent by 2022 from the current 16 percent.
The company markets its spandex under the Creora family of brands. It is focusing on the sale of spandex for things like hijabs, lingerie, sportswear and denim. In 2020, when the new plant will become fully operational, Hyosung will begin to concentrate on expanding the high-value-added market.
Since it began operations in India in 2007, Hyosung has built a high voltage breaker plant in Pune, in 2016, and is increasing sales by more than $300 million annually by expanding business in that country.
Now that it successfully launched its first spandex plant in India, Hyosung considers the Americas as the next site for another spandex facility.