Major boost for Rayalaseema: Korean giant Hwaseung to set up Rs 898 cr footwear plant in Kuppam

South Korean footwear giant Hwaseung Footwear, one of the world's leading suppliers for Adidas and other international brands, is set to invest Rs 898 crore in a new non-leather footwear manufacturing facility in Kuppam, Andhra Pradesh. The announcement marks a significant boost to the state’s manufacturing sector and its ambitions to attract global investors to the Rayalaseema region.

According to a statement from the Andhra Pradesh government, the greenfield project—approved by the State Investment Promotion Board (SIPB)—will be developed over a 100-acre industrial campus at Pogurupalle in Gudupalle mandal.

The investment is expected to create 17,645 direct jobs, transforming Kuppam into one of India's leading footwear manufacturing hubs and generating significant economic activity in the Rayalaseema region.

The project will be executed in three phases, with capital outlays of Rs 308.92 crore, Rs 298.44 crore, and Rs 291.53 crore, respectively. The phased rollout will enable the company to scale production rapidly while integrating sustainable manufacturing practices.

To fast-track development, the state government has cleared a customised incentive package that includes an investment subsidy of 30% (capped at Rs 299 crore), employment and local procurement subsidies, and power tariff reimbursement for 10 years. Hwaseung will also receive 100% exemption on stamp duty and registration fees, along with a decarbonisation subsidy for green manufacturing initiatives.

The Andhra Pradesh government said it has committed to extending complete support through land allotment, infrastructure assistance, and streamlined project clearances under the Single Desk Portal 2.0, designed to improve ease of doing business and ensure swift execution.

"The state is rapidly emerging as a preferred destination for high-value manufacturing. Investments such as Hwaseung’s will drive industrial growth and economic revival in southern Andhra," the statement said.

Hwaseung's entry into the state is also seen as a strategic boost to India's export-oriented footwear industry, especially in non-leather manufacturing—a sector gaining traction globally due to sustainability standards and shifting consumer preferences.