Taiwanese footwear giant Hong Fu Industrial Group, a key supplier to global brands like Nike, Converse, Adidas, and Puma, marked its entry into India on Monday with the groundbreaking ceremony of its Rs 1,500-crore footwear manufacturing facility at SIPCOT Industrial Park in Panapakkam, located about 85 km from Chennai.
A Major Milestone for Hong Fu
As the world’s second-largest manufacturer of non-leather athletic footwear, Hong Fu produces approximately 200 million pairs of sports shoes annually, generating $3 billion in revenue. The ceremony, which was attended by Chief Minister M.K. Stalin, marks a significant step in the company’s global expansion.
The Panapakkam facility is expected to provide jobs for 25,000 people, with 85% of the workforce being women. The facility is set to begin operations by early January 2026, contributing to the region’s employment and economic growth.
Why India Was Chosen
According to T Y Chang, chairman of Hong Fu, India’s rapidly growing economy and its increasing global influence made it a natural choice for the company’s latest investment. Chang’s son, Jacky Chang, CEO of Hong Fu, expressed his optimism for the project and thanked both the Tamil Nadu government and the Centre for their support.
A Step Toward Inclusive Development
The facility’s establishment is more than just about footwear manufacturing. Aqeel Panaruna, the Joint Venture Partner and stakeholder in the project, emphasized that it is about creating job opportunities, empowering communities, and contributing to the state’s vision of inclusive development.
Strategic Investments in Tamil Nadu
Hong Fu’s entry into Tamil Nadu and India was facilitated through two memoranda of understanding (MoUs) signed with the Tamil Nadu government. The first MoU, signed in April 2022, was for an initial investment of Rs 1,000 crore. The second MoU, signed in January 2024, brought the total investment for the project to Rs 1,500 crore.
Boosting India’s Footwear Sector
R Selvam, Executive Director of the Council for Leather Exports, praised the Panapakkam project as a valuable addition to India’s footwear manufacturing ecosystem. He highlighted that the growing investments in the sector reflect the confidence in the Make-in-India initiative and the potential for significant growth in the footwear industry.
This landmark project not only strengthens Tamil Nadu’s position as a global manufacturing hub but also underscores the state’s commitment to economic growth, job creation, and sustainable development.
