October 2024
Hong Fu Industrial Group, a global leader in footwear manufacturing, has announced a significant investment of ₹1,500 crore to establish a state-of-the-art non-leather footwear manufacturing facility in Tamil Nadu. Spanning 200 acres, the facility is expected to become operational by late 2025 and will create 20,000 jobs, with a special focus on empowering women in the workforce. The company has also signed a Memorandum of Understanding (MoU) for an additional ₹1,000 crore investment to build a second facility, with the location to be confirmed soon.
TY Chang, Chairman of Hong Fu, expressed excitement about the company’s entry into the Indian market, citing India’s rapid economic growth and increasing significance on the global stage. “We are thrilled to expand our operations to India and deeply appreciate the support from both the Tamil Nadu and Indian governments in promoting the footwear industry,” said Chang. Jacky Chang, the elder son of TY Chang and Director and CEO of Hong Fu, also shared his optimism about the Indian market, highlighting domestic sales opportunities and noting India as a future growth hub for the company’s operations. “India’s growth potential makes it a crucial market for us. Despite global economic challenges, we are confident in the long-term success of this investment,” he added.
Aqeel Panaruna, a minority stakeholder in the venture, will lead the Indian operations. A staunch advocate of the ‘Make in India’ initiative, Panaruna emphasized the benefits of domestic production, including reducing carbon footprints and decreasing dependency on imports. Panaruna Aqeel expressed gratitude to the central government for its supportive policies towards the footwear industry and also thanked the state government for providing various subsidies that have facilitated the establishment of a footwear manufacturing plant. Aqeel Panaruna projects India’s footwear exports could reach $10 billion by 2030, with Tamil Nadu contributing 60% of this growth.
Construction of the Tamil Nadu facility is scheduled to begin in January 2025, with commercial production expected by late 2025. Founded in the 1970s by TY Chang, Hong Fu is a key manufacturing partner for global brands such as Nike, Converse, Vans, UGG, Puma, Adidas, and Reebok. The company’s expansion into India underscores the country’s growing prominence in global footwear manufacturing. Artelia Consulting Engineers Ltd has been appointed as the project consultant, and a leading Tier 1 legal firm in India has been engaged to ensure compliance and provide advisory services for smooth project execution.
Mr. S Balasubramaniam, the local Director for India, expressed his excitement about the project, noting its potential to stimulate the local economy. A native of Thiruvaiyaru in the Tanjore District, he sees this initiative as a milestone in his career and is confident that production will commence as planned.
Shoes and Accessories have been providing guidance on the domestic market, and Amit Chopra, Managing Director of Shoes & Accessories, recently met TY Chang, Chairman of Hong Fu, to discuss the evolving retail landscape in India. Their conversation underscored India’s growing consumer base and expanding market potential in the footwear sector, paving the way for future collaborations and investments. This strategic investment reflects Hong Fu Group’s long-term vision for India, focused on sustainable growth, innovation, and inclusivity.
