Mumbai, Nov. 5 -- Andhra Pradesh has secured investment commitments worth Rs. 16.14 bn from three South Korean automotive component manufacturers, strengthening the state's manufacturing base. Hwashin, Seoyon and Iwamet have signed agreements with the state government to establish facilities in Anantapur district.
The companies supply global carmakers Hyundai and Kia. Their proposed projects are expected to create about 1,418 employment opportunities and support Anantapur's development as an automobile and auto-components production hub.
One of the companies has committed Rs. 8.5 bn, while another plans to invest Rs. 5.14 bn and the third Rs. 2.5 bn. The combined commitments follow a visit to South Korea in July by Andhra Pradesh Minister for IT, Electronics and Human Resource Development Nara Lokesh, who held discussions with companies connected to Hyundai and Kia's global supply chain.
The state's Economic Development Board subsequently continued its engagement with the companies, helping translate the initial discussions into investment proposals. The commitments come as southern states compete to attract international manufacturers and suppliers. Tamil Nadu, which has an established automobile ecosystem and a sizeable presence of South Korean companies, has also been pursuing investment from Korean businesses.
South Korea remains an important source of foreign investment for India's automotive, electronics, renewable energy and advanced manufacturing sectors. Several state governments have increased outreach to Korean companies seeking to expand in India. Separately, Hyundai reported a 16.7 per cent increase in domestic wholesales to 62,799 units in October, supported by festive demand and momentum in domestic and export markets, according to the company's managing director and chief executive Tarun Garg.
Published by HT Digital Content Services with permission from Construction World.