South Korea’s Hwaseung to set up footwear plant in Kuppam, Rs 898 crore proposal

Vijayawada: In a major boost to Andhra Pradesh’s manufacturing sector, Hwaseung Footwear, a leading South Korean footwear manufacturer and one of the world’s largest OEM suppliers for Adidas and other global brands, proposed a Rs 898 crore investment to establish a state-of-the-art non-leather footwear manufacturing facility in Kuppam, Chittoor district.

Industrial campus in Kuppam

The greenfield project, approved by the State Investment Promotion Board (SIPB), will be developed across a 100-acre industrial campus at Pogurupalle, Gudupalle Mandal, making Kuppam one of India’s emerging hubs for global footwear manufacturing.

The Korean giant’s entry into Andhra Pradesh will be transformative for the region, with the unit expected to generate nearly 17,645 direct jobs, significantly boosting economic activity and livelihoods in Kuppam and surrounding areas.

Three-phase expansion plan

According to the approved proposal, Hwaseung will implement the project in three phases. Phase I: Rs 308.92 crore investment, Phase II: Rs 298.44 crore, Phase III: Rs 291.53 crore.

Govt’s speed of doing business incentives

To ensure rapid development of the project in Kuppam, the Government of Andhra Pradesh has approved a tailored incentive package, including an investment subsidy of 30 per cent, capped at Rs 299 crore, an employment subsidy, local procurement subsidy, power tariff reimbursement for 10 years, 100 per cent exemption on stamp duty and registration fees, decarbonisation subsidy for green manufacturing initiatives.

The State government has committed full support for land allotment, infrastructure development, and streamlined approvals through the Single Desk Portal 2.0, ensuring swift project execution.

This investment aligns with Chief Minister Chandrababu Naidu’s vision to position Andhra Pradesh as a premier destination for global manufacturing and to drive large-scale employment creation in the Rayalaseema region.