After excelling in the IT and Pharma sectors, the Telangana government is making inroads towards an impressive performance in the textile and apparel industry, pushing it to be counted among the major textile centres like Gujarat, Maharashtra, and Tamil Nadu.
The Telangana government is building world-class textile parks and providing several benefits such as tax breaks, incentives etc. The proposed Kakatiya Mega Textile Park will be one of the biggest textile parks in India upon completion.
This project is being supported with substantial investment from domestic and international companies. Among recent investments, the biggest is to come from South Korea.
One of the leading textile makers in South Korea, Youngone Corporation, has recently signed an agreement with the Telangana government. This is believed to be a glorious new chapter of the business relationship between India and South Korea.
Kihuk Sung, Chairman of Youngone Corporation, said, “We are investing in Telangana for their proactive approach and business-friendly policies. KTR has been very supportive throughout to make the project successful. We have completed the formalities for the final agreement to set up textile units at KMTP, Warangal, which will create direct and indirect job opportunities not only in Telangana but all across India too.”
According to the management of Youngone Corporation, work on five factories in phase 1 is nearing completion. They will start production in these factories in a couple of months. The work for phase 2 is in the advanced stages.
These units were supposed to start production in early 2021 but were delayed due to the Covid-19 pandemic and its multiple waves.
The historic agreement between the South Korean chaebol and the Telangana government will work as an anchor investment that will draw in more players from Korea and other major textile manufacturing countries.
It is also an achievement for the Telangana government, promoting KMTP as the fibre to fabric, end-to-end global textile manufacturing hotspot for national and international investors.
On the occasion of inking the deal, the Chairman of Youngone Corporation said, “Our investment will provide a magnetic effect to catalyse more Korean FDI in Telangana and particularly Kakatiya Mega Textile Park.”
The project will provide international exposure to the local people. They will get to know global practices, learn newer methods of textile making, and experience cultural exchange.
Currently, natives of Telangana work in the textile industries in Maharashtra, Tamil Nadu, and other traditional centres of fabric manufacturing. Youngone Corporation, along with dozens of national and international companies, will generate substantial employment opportunities.
Youngone Corporation alone pledged to provide around 12,000 direct jobs. It will be an opportunity for migrant workers and professionals to work within their state.
Textile units will create indirect jobs for logistics, cleaning, raw materials supply, and other operational requirements.
The textile sector is an established industry in South Korea. The Youngone Corporation will bring the latest tech and know-how along with their factories and will empower employees for challenging job roles.
The process of textile making involves spinning, weaving, wet-processing, worsted fabric manufacturing, carpet manufacturing etc. Companies need various raw materials for manufacturing textiles. It will provide an opportunity for small and medium-scale industries to become vendors.
Thus, it will generate revenue for local businesses and encourage a new pool of entrepreneurs.
One successful investment attracts other foreign players in the industry. Additionally, the Telangana government has proposed a separate cluster for South Korean companies. These developments will surely attract more textile giants from South Korea.
Cotton, silk, synthetic fibre, wool, and jute are essential raw materials in the textile industry. Telangana produces these raw materials in significant quantities.
Workers from Telangana have worked in the textile industry in Maharashtra, Gujarat, and Tamil Nadu for years. They bring years of experience and knowledge about the latest happenings in the industry.
The Telangana government is doing a commendable job of attracting investments in the textile sector. Apart from Youngone, there have been significant investments from others, including Welspun, P&G, Kundana Technotex Pvt. Ltd., Ganesha Ecosphere Ltd., Sitaram Spinners Pvt. Ltd., and Kitex.
These investments will boost the economy, encourage the MSME sector, and generate thousands of temporary and permanent job opportunities.
The Telangana government is taking a three-pronged approach to boosting the textile industry.
The textile sector employs around 45 million people and is the second-largest employer in India. As a labour-intensive sector, the Telangana government is focused on transforming it into the leading employment generator for the state.
Kakatiya Mega Textile Park, Warangal (KMTP)
Sircilla Apparel Park
South Korean companies have a legacy and expertise in the textile industry. They can provide valuable inputs and crucial trade secrets and help Telangana become the top textile-producing state in India. With multiple clusters of textiles across India, this move will help the industry in India garner a respectable market share globally.
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