CHENNAI: South Korea’s Hwaseung Enterprises is set to invest Rs 1,720 crore in a large-scale non-leather footwear manufacturing facility at Gangaikondan in Tirunelveli district, marking the company’s first production base in India and a major addition to the state’s export-oriented manufacturing portfolio.
The proposed unit, expected to generate around 20,000 direct jobs, will be among the largest employment-generating footwear projects in the state. The company will sign a memorandum of understanding (MoU) with the Tamil Nadu government in this regard on Monday at the inaugural edition of the state’s new regional investment initiative ‘TN Rising’ in Thoothukudi, sources said.
Hwaseung, a key supplier to global brands such as Adidas, currently operates facilities in Vietnam, Indonesia, and China. Its expansion into Tamil Nadu reflects a shift towards diversified geographies and sustainable material use in manufacturing. The project is also seen as a key milestone in the state’s effort to position itself as a global hub for non-leather footwear production.
“This is a strategic win for TN and for India’s non-leather exports,” said a state government official, noting that Hwaseung’s presence could catalyse a clustering effect by attracting ancillary suppliers and contract manufacturers to the region.
The announcement comes amid a broader investment push in southern Tamil Nadu, with the Vietnamese electric vehicle (EV) major VinFast scheduled to inaugurate its integrated EV plant in Thoothukudi on August 4.
Moreover, the TN Rising conclave is expected to attract a cross-section of investors, policymakers, sectoral experts and academia, with new MoU signings and announcements across key sectors like green energy, electronics manufacturing, and skilling.
Designed to unlock industrial potential in Tier 2 and Tier 3 locations, the conclave series is part of the TN’s vision to become a USD 1 trillion economy by fostering balanced regional development and sustainable industrialisation.
More pacts to follow in coming weeks: Officials
“When I meet investors, I often say TN’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,” Industries Minister Dr TRB Rajaa said on Sunday.
These TN Rising conclaves are our way of showing that Tamil Nadu’s industrial growth is not confined to the major cities — our strength lies across the length and breadth of the state, he added.
According to industry department officials, more MoUs are expected in the coming weeks, signalling southern TN’s emergence as a key investment corridor. Tamil Nadu already contributes 38% of India’s footwear and leather goods output, and is now accelerating a shift toward non-leather segments such as synthetic and sports footwear.
Recent investments by Taiwanese majors like Pou Chen, Feng Tay, and EKFL (part of the Phoenix-Kothari Group) — which supply to Nike, Adidas, and Crocs — have further strengthened the state’s non-leather ecosystem.
TN’s Shift towards non-leather goods
The state already contributes 38% of India’s footwear and leather goods output, and is now accelerating a shift towards non-leather segments such as synthetic and sports footwear, as per industry department officials
