admin Globalization has opened up the elbow room for market opportunities, simultaneously contemplate the risk of its threats. This high-stake game gives prominence on the product developments and innovations. To attain a competitive advantage, industries are emphasizing on product as well as technological improvements.
Manufacturing Industry has evolved significantly since the advent of the industrial revolution. In today’s global and competitive age, manufacturers strive to offer a perfect amalgamation of machinery, automation, technology, and manufacturing expertise.
A change with value breathes inspiration into numerous industries and technologies, and a creative company that leads the change presents a better tomorrow faster than anyone. This is what Hyosung considers the most valuable kind of “Creativity.”
Despite having already cemented their position as No.1 in most of their business areas, Hyosung refrains from growing complacent with their domestic achievements and always seeks to challenge themselves further to grow in the global market. They are deeply aware of their role as a member of their community and strive to become a company that can contribute to society.
Tapping Overseas with Constant Technology Development and Quality Innovation
Founded in 1966, Hyosung has played the role of driving the economic development of South Korea by leading state infrastructure projects. Starting as a chemical fiber company, now the group is operating various businesses, including textiles, chemicals, heavy industries, construction, trading, and information communications, with 32 manufacturing units, 22 trading entities, and 31 trading offices around the world.
In June 2018, Hyosung converted into a holding company structure with four independent entities—Hyosung TNC, Hyosung Heavy Industries, Hyosung Advanced Materials, and Hyosung Chemical in an effort to bolster its global presence by enhancing competitiveness and expertise.
A Global Leader in Textile Material
According to Business Research Company’s Textile Manufacturing Global Market Report 2019, “The textile manufacturing market size is expected to reach $1 trillion by 2022, significantly growing at a CAGR of around 7% during the forecast period. The growth in the textile manufacturing market is due to high demand for ready to wear apparel products from developed countries and developing countries such as China and India, high demand for fabrics.”
Hyosung TNC is growing into a global leader in the textile materials industry with its original technology and innovative quality as the No.1 spandex manufacturer in the world with a market share of more than 30%. Hyosung Advanced Materials has secured its competitive edge by producing high-value added, sophisticated industrial materials, including tire cord, which solidly maintains its top position in the global market with a share of over 40%, as well as tire reinforcements, car mats, seatbelt yarn, and airbag fabric. Hyosung Heavy Industries, which has accumulated know-how and unrivalled technologies in the fields of power equipment and industrial machinery facilities, is actively pushing to strengthen its global competence as a total energy solution provider by developing new IT-based projects as well as building up its expertise in the construction area, including homes and redevelopment. Hyosung Chemical is growing into a firm specializing in chemical materials, such as PP/DH, TPA, and film, and striving to nurture new growth engines, including NF3, TAC film, and polyketone.
Hyosung achieved approximately USD 1.5 billion in total sales (based on the consolidation of the holding company and four entities) last year and plans to focus on expanding markets based on new overseas production facilities including a spandex plant in India scheduled to be complete this year. In addition, the group will concentrate on developing technologies and securing products that reflect customers’ needs by paying attention to the Voice of Customer to identify their exact needs.
Visiting Customers’ Locations to Offer Tailored Services; Achievement of USD 300 million in Annual Sales in just 10 Years of Entry into India
In India, Hyosung achieved annual sales of USD 300 million in just 10 years after the first entry into the country. The company is now stepping up efforts to expand the market share with a strategy to provide customer-specific services by going wherever the customers are.
Hyosung opened a trading office in New Delhi in 2007 and established a trading corporation in 2012. The group is expanding clients by targeting the market with not only its flagship products such as spandex, GIS, and tire cord, but also a variety of other products including aramid, carbon fiber, nylon, polyester yarn, steel, and trade chemicals. In 2009, Hyosung also made inroads into India’s financial market by opening an office in Mumbai and selling ATMs.
Hyosung entered the Indian power equipment market in 2007 and won orders for transformers, ultra-high voltage circuit breakers, and others. In 2015, the group established a manufacturing unit in Pune, Maharashtra and began mass production of breakers in June 2016. Hyosung received high praise for its ability to jointly carry out projects with local construction, civil engineering, and installation companies in India with reliable partnerships. Hyosung is increasing its market share through detailed sales strategies in which it analyses problems and suggests solutions when customers raise quality issues. This year, Hyosung sets out to actively participate in the bidding of Power Grid Corporation India Limited (PGCIL) as well as expand its role in India’s “Make in India” policy in eco-friendly transmission systems such as ESS and STATCOM.
Hyosung is recognized as a trustworthy business partner by reflecting the voice of customers from the fields in product development and quality innovation. In a joint product development meeting where the owner of Vardhman, the largest client of spandex in India, attended, the customer shared its problems first and then sought solutions with Hyosung. Based on customer-specific strategies, Hyosung’s spandex brand creora® has a market share of about 60% in India. Hyosung, which mainly focuses on sales of spandex for Muslim wear such as hijabs, lingerie, sportswear, denim, and diapers, plans to increase its market share to 70% by preemptively investing in the rapidly growing Indian market.
Hyosung is also seeking to attract outstanding talents in India. In 2017, Hyosung Chemical CEO Jun-hyoung Park visited Indian Institute of Technology (IIT) in Delhi and gave a lecture on Hyosung’s new materials such as polyketone for more than 100 attendees, including faculty members, students, and institutions that promote investment in state projects. Hyosung and IIT also agreed to pursue continued technology exchanges and cooperation.
Chairman Hyun-Joon Cho Promises “Shared Growth with Indian Economy” at Meeting with Indian PM Narendra Modi
Manufacturing has appeared as one of the high growth sectors in India. Prime Minister of India, Mr. Narendra Modi, had launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy. According to The India Brand Equality Foundation reports, India is expected to become the fifth largest manufacturing country in the world by the end of year 2020.
India is a captivating hub for foreign investments in the manufacturing sector. Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country.
Hyosung Chairman Hyun-Joon Cho has chosen India as the strategic base of the “Centennial Hyosung” and plans to expand its reach across global markets. Hyosung will continuously build and expand its production facilities in India with aims to not only target the Indian domestic market but also make them as a key global production base for the world’s No.1 products, such as spandex, which are exported to Europe and Asian markets.
Chairman Cho unveiled his plan to complete the construction of a spandex plant in Aurangabad Industrial City (AURIC) in the state of Maharashtra by 2019 during his meeting with India`s Prime Minister Narendra Modi in Mumbai in February 2018. This Hyosung’s first spandex plant in India is expected to lay the groundwork for the company to target the Indian market in the future. The Indian spandex market has grown at an annual average rate of more than 16% from 2012 to 2017 and is forecast to increase at an annual average rate of over 12% to reach USD 200 million by 2020. Notably, Maharashtra where Hyosung’s factory will be established is considered to be a key industrial area that produces half of the total textile output in India.
Hyosung is constructing a spandex plant of a production capacity of 18,000 tons on a 100-acre (40 ha) site by investing about USD 150 million with a scheduled completion by the end of June. Once the new plant is fully operational, the company plans to carry out marketing and sales activities with the focus on expanding the high-value-added premium market. Hyosung will continue to increase investment in accordance with demand and growth prospects in the future.
Chairman Cho told Prime Minister Modi that “As the full support of the Indian government has helped Hyosung build a new plant in India, I hope that this will serve as an opportunity for Hyosung and the Indian economy to grow together. With Hyosung’s new plant, we will pursue shared growth with related industries, such as weaving, knitting, dyeing, and sewing, as well as contribute to invigorating the local economy by hiring outstanding talents in the region.” Prime Minister Modi also responded, “Korea is playing a key role in the ‘Make in India’ policy, which is driving India’s high economic growth. I believe Hyosung’s investment will strengthen India’s future competitiveness and industrial base. We will provide an ideal environment for companies to continue investing in India.”
Chairman Hyun-Joon Cho also vowed his commitment to the development of the Indian economy while attending the Magnetic Maharashtra Convergence 2018 Exhibition along with other Indian and global business leaders, including Tata Group Chairman Ratan Tata and Reliance Group Chairman Mukesh Ambani. This event was held to present the direction of India’s economic development and seek to attract foreign investment in fields such as manufacturing, export-oriented industries, infrastructure development, smart city, and IT.
In his opening remarks, Chairman Cho expressed his appreciation by saying, “Thanks to the full support of the Indian government, Hyosung was able to build a spandex plant in India, a longstanding hope of our company. Our high-voltage circuit breaker manufacturing unit in Pune is also making strides to establish India’s power infrastructure. Hyosung will work to find its future in India, the country emerging as a key player in the global stage, and grow into a company beloved by Indians.”
Chairman Cho’s Global Management Mindset Makes Globally Competitive Hyosung
Hyosung Chairman Hyun-Joon Cho studied in the School of Political Science at Yale University and graduated with a master’s degree at Keio University, Graduate School of Law in Japan. He then gained a wide range of international work experience at Mitsubishi and Morgan Stanley.
Chairman Cho joined Hyosung in 1997 as a department head of the Strategy Division and has led the group’s growth by reforming the organizational structure based on performance, improving the management system, and driving the establishment of global production and sales networks in key business areas such as spandex, tire cord, heavy industries, and information communications. Since the inauguration as the chairman in January 2017, he has focused on cultivating new growth engines including IT solutions based on new materials and big data through continuous investment as well as research and development across all business areas.
Hyun-Joon Cho, An Audacious behind Hyosung
Hyun Joon Cho, Hyosung Corporation Chairman & CEO, majored in political science at Yale University in the U.S. and later earned a master’s in the same subject at the Law School of Keio University in Japan. He went on to accumulate business experience in Tokyo working for Mitsubishi Corporation and Morgan Stanley.
Joining Hyosung in 1997 as head of its corporate strategy center, Cho helped shape the company into a global leader by establishing a performance-based organization, improving the management system, and building a global manufacturing and sales network for Spandex, tire cord and heavy electric machinery all over the world. Since his appointment as CEO in January 2017, Cho has emphasized the development of future growth engines like new materials and big data-oriented IT solutions, leading continuous investment and R&D in all business lines.
Cho is also recognized as a next-generation entrepreneur with keen global sense, business experience and a diverse social network. He has served as vice chairman of the Korea-Japan Economic Association since 2014, and in the following year, he gave a speech in an association meeting on “Future Image and Cooperation Plan between Korea and Japan Looking Toward Future Generations.”
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