Khed city is one of the sought after destinations for South Korean companies. Post the bilateral Comprehensive Economic Cooperation Agreement (CEPA) set in place with South Korea, investments in both the countries s are on the upswing. Undoubtedly, South Korea is a special strategic partner of India and the acceleration of economic ties between the two nations has led to a major expansion in investments.
South Korean majors such as Hyundai Motors, LG, Samsung Electronics, Posco, SK Group, and Kia among others have invested over $ 4 billion till 2017 in India, and have plans to expand further.
Recently, South Korean industrial conglomerate Hyosung Corporation established their switch gear manufacturing facility in Khed City, India. While another multinational company AutoGen, known for automotive component manufacturing have established their base here. Of which, Hyosung T&D India built their set up and started business within a year’s time. Let us see into the favourable reasons.
- Quick land allotment & hassle free transaction
Hyosung T&D India set a benchmark by setting up their manufacturing unit within years’ time, literally. The entire process from land allotment to the setting up of the manufacturing unit was smooth sailing at Khed City. The South Korean conglomerate has begun full-fledged production of its switchgear manufacturing unit spread over 14 acres in no time.
Environment clearance, fiscal benefits, ready availability of skilled and unskilled manpower, hassle-free documentation and quick land possession process gives Khed City an extra edge over other industrial zones around Pune.
- Proximity to a booming automobile industry
Besides being an industrial hotspot, Pune is home to some of the prime automotive players. Bajaj Auto, Tata Motors, Mahindra & Mahindra, Force Motors, Volkswagen, Jaguar Land Rover, Renault etc. Automotive component majors like Bharat Forge, Cummins, TATA Autocomp Systems, Robert Bosch GmbH, etc. are also based out of Pune’s industrial area. Korea is a leading exporter of auto components to India’s giant automakers like Mahindra & Mahindra and Tata Motors. AutoGen, a leading South Korean automotive component manufacturer has acquired 4 acres of land in Khed City. AutoGen supplies hot stamping parts to Mahindra & Mahindra.
Positioning suppliers/vendors in close proximity to OEM plants reduce delivery lead time and inventory. Having an industrial base inside Khed City is a boon to companies as these established major automobile and industrial hubs are in close proximity to Khed City.
3. Korean Integration into the Indian Fabric
Whether the reason is education, career, cuisine or in search of an Indian dream, India has been the melting pot for Koreans lately. Expansion of Korean majors like Hyundai, LG and Samsung in India, has resulted in the growth of Korean workforce in the country. According to the Korean Association of Pune, about 500 Koreans annually immigrated to India 20 years ago. Today the figure has already crossed 1,500 in Pune alone. A favourable climate, a vibrant culture and community acceptance have helped the Koreans mix in the Indian milieu more easily than ever before.
India and Korea are expanding their business relations with an aim to augment bilateral trade to $50 billion by 2030. Khed City’s flourishing industrial land in Pune will not only better the economic ties between the two countries, but also help India achieve its trade target.