What country is expected to experience the fastest economic growth in the next three years? Global credit rating agency S&P has pointed to India. It's forecasted that by 2030, India's GDP will reach USD 7.3 trillion, surpassing Japan to become an economic powerhouse.

▲ A view of Hyosung's spandex factory in India

Indeed, India's economic growth rate has consistently exceeded 7% since 2021. As India's global influence strengthens, HYOSUNG is also intensifying its presence in the Indian market. HYOSUNG Chairman Hyun-joon Cho emphasized India as the cornerstone of global, 100-year HYOSUNG during the New Year's greetings, urging thorough preparation, stating, "(Along with China), Indian companies have also become our competitors. We must be fully prepared."

Experts attribute India's growth momentum to its abundant human resources, low labor costs, and the proactive reforms of the Indian government. India is home to the world's largest population, with a median age of 27.9 years as of 2022. A significant portion of its populace possesses high-level education and enjoys low labor costs. Furthermore, India's "Modinomics" policy, pursued by the Modi government over the past decade, advocates high growth and pro-business measures, accelerating industrial development and investment attraction. In light of these considerations, India is not only an attractive market in the present moment but also holds significant potential for the future..

Core Business of HYOSUNG: Aligning with India

For HYOSUNG, India holds significant meaning as a strategic hub through its textile industry, enabling both domestic sales and exports. Since 2007, HYOSUNG has expanded its business in India, focusing on core products such as spandex, tire cords, and gas insulated switchgear (GIS). Among these, spandex stands out as a key business dominating the global market, including India.

Spandex, often referred to as the semiconductor of the textile industry, boasts high value-added as global demand grows by approximately 8%. Hyosung TNC’s spandex has maintained its position as the global market leader for over a decade with outstanding quality. Recently, by introducing sustainable and recyclable lines utilizing corn extracts and industrial waste, it has obtained global environmental certifications, further enhancing its differentiation.

Currently, Hyosung TNC's spandex boasts a high market share of approximately 60% in India, deeply influencing the daily lives of Indian consumers through its application in various garments such as hijab, swimwear, and leggings. The high recognition of spandex within India stems from HYOSUNG's strategic efforts to tap into niche markets. Despite India being renowned as the world's largest cotton producer and the largest textile market, its productivity has not kept pace due to technological deficiencies and rigid labor culture. Moreover, with only a few Indian companies dominating the market with a focus on mass-produced textiles and garments, there was a shortage in meeting the demand for high-value-added products. In such circumstances, HYOSUNG's presence has brought a breath of fresh air to the Indian textile market, seizing the high-value-added product market through spandex.

Established in 2018, Hyosung TNC's Indian spandex subsidiary has successfully established itself in the Indian textile market, expanding its scale by operating a factory with an annual production capacity of 19,000 tons in 2019. Last April, it expanded production facilities with an investment of approximately USD 63 million to meet the increasing demand, which led to a dual success of simultaneously meeting domestic and export demands. 

'After China': India, Firmly Establishing Itself as HYOSUNG's Global Partner

India's potential extends beyond the textile market. As a new production hub emerging to replace China, India is actively attracting private investment across various industries such as chemicals, electronics, and automotive. Global companies have been building partnerships with India for over a decade, while small and medium-sized enterprises and startups are also aiming to enter the Indian market promptly.

Recently, amid negative signals for business with China due to the US-China trade war and the repercussions of the Russia-Ukraine war, interest in India has grown even more. With this trend expected to continue for an extended period, India is welcomed as a production base to replace China and as a consumer market with abundant potential.

Aligning with the global trend of moving away from China, HYOSUNG is steadily establishing and expanding production facilities in India. In addition to spandex and GIS mentioned earlier, business sectors such as aramid, carbon fiber, circuit breakers, transformers, and ATMs are some of the examples. Such moves by HYOSUNG are expected to enhance its competitiveness in the European and Asian markets, including India, as it gains recognition as HYOSUNG's global partner, spotlighted as 'After China.' Given this opportunity, what vision does HYOSUNG hold for itself on this promising land of India?

The ‘100-Year HYOSUNG' Vision Realized through India

HYOSUNG harbors a dream of fostering India into a next-generation production base for Hyosung Advanced Materials’ tire cord. Tire cord, a fiber reinforcement that shapes tires and provides durability, is a crucial material affecting tire lightweighting and driving stability. Currently, Hyosung Advanced Materials maintains an unparalleled position as the global leader in the polyester tire cord sector, with a staggering 51% global market share, utilized in nearly half of the world's passenger car tires.

As of 2021, India's car ownership rate stood at 22 vehicles per 1,000 people, the lowest globally. However, with annual car sales growing by over 20% since then, India's potential has been recognized. With the explosive expansion of India's automotive market, Hyosung Advanced Materials’ tire cord currently commands a 56% market share in India. As HYOSUNG's initiative to establish 'next-generation tire cord production base in India' gains momentum, it is expected to solidify its position as the world's number one in the global market, buoyed by the rapid economic growth in the region.

HYOSUNG has built a global network spanning 29 countries and 77 cities. Despite numerous trials and errors, what enabled it to maintain its position as a future industry-leading company could be attributed to Chairman Cho's mentioned 'DNA for overcoming crises' in his New Year's address. While the Indian market, with its significant potential, also presents anticipated challenges, the reason for greater anticipation lies in the new changes that will be built upon the accumulated strength and know-how. We ask for your continued interest and support for HYOSUNG's journey to grow into a century-old company alongside India.