Hyderabad: $1.75 billion South Korean textiles and apparel major Youngone Corporation has signed the final agreement with Telangana government to set up a unit in Kakatiya Mega Textile Park (KMTP) in Warangal, with an investment of about Rs 900 crore in 290 acres. The company is expected to create 12,000 direct and indirect jobs through this venture.
A formal agreement has been signed in the presence of Telangana Industries Minister KT Rama Rao, Indian Ambassador to Korea Sripriya Ranganathan, Korean Ambassador to India Shin Bongkil and Youngone Corporation chairman Kihak Sung on Wednesday in Hyderabad to set up the company’s unit in the Park.
Youngone also received the land allocation documents for the project. The Korean firm has earlier signed a memorandum of understanding (MoU) with the State government for this unit. The company plans to manufacture knitted and woven garments for outdoor wear and technical textile products, predominantly for exports.
The Minister welcomed Youngone Corporation and stated that this anchor investment is expected to catalyse more investments in KMTP as well as more Korean foreign direct investment (FDI) in textile and other sectors in Telangana.
Youngone Corporation chairman Kihak Sung told Telangana Today in an exclusive interview, “Telangana government attracted our investment with its industry-friendly policy and proactive approach. KTR has been very facilitating to make this project possible. We have signed the final agreement to set up our unit in Warangal, which will create jobs not only in Warangal but in India.”
Sung added, “We plan to make various textiles, fabrics and technical textiles. We will also be making outdoor apparel and sportswear. Our major focus will be exports, but we hope to cater to India market as well. For us, key export markets remain the US, Europe and Asia.”
When asked if the company will look at automation, he said, “Currently, we use a lot of robotics and automation. We are one of the champions in computerised and automated manufacturing in the industry. We will be building a forward looking unit in Warangal. We are also going to have research and development (R&D) base along with manufacturing at the site. We have manufacturing facilities in eight countries at present and export to every market globally.”
Youngone currently operates in 13 countries, including Bangladesh, Vietnam and Ethiopia with subsidiaries in the US and Switzerland, and employs over 90,000 employees worldwide. The company makes textiles, technical outdoor/ athletic apparel, sportswear, knitwear and footwear.
E V Narasimha Reddy, vice-chairman and MD of TSIIC, said, “Youngone Corporation plans to make synthetic fabric and other apparels at the unit. The anchor investor has acquired about 20-25 per cent of the land in the Park.”
The Consul General of Korea in Hyderabad Suresh Chukkapalli, Telangana Principal Secretary Jayesh Ranjan and other senior officials of the Government also participated in the meeting.