TN builds a bridge to Taiwan

Tamil Nadu is seeing a major expansion in manufacturing, producing goods for global consumer electronics, and footwear majors such as Apple, Nike, Puma, and Adidas, thereby integrating deeply into global supply chains. Much of this momentum can be traced to the increasing presence of Taiwanese companies in the state. Recent entrants and existing players include Feng Tay, Pou Chen (High Glory Footwear India), Evervan Group, Hong Fu, TKG Taekwang, Foxconn, Pegatron, Wistron, and Delta Electronics.

A combination of geopolitical shifts, an existing manufacturing base, superior connectivity, and lower operational costs have made Tamil Nadu attractive. Simon Lee, Vice General President of the Taiwan Chamber of Commerce in India, credits the Tamil Nadu government's targeted efforts, policy incentives, and engagement with brands and OEMs for attracting Taiwanese investment. "A key challenge remains the lack of vertical integration and tier-1 and smaller suppliers, but this is improving," he said.

Critical footwear components such as uppers, PU, textiles, midsoles, outsoles, gums come from a vast supplier network. Lee, who also chairs the Allegiance Group, recently signed an agreement to set up operations at the newly announced Taiwanese Industrial Park near Chennai. "As a cluster, the resources could be shared effectively for compliance, workforce, and machinery. This will significantly reduce process impediments and cut down the timeline. This will also help TN compete with manufacturing parks in Vietnam and Cambodia, Indonesia," he said.

Vignesh Anandan, a footwear sourcing consultant, has witnessed the industry's evolution firsthand over the last eight years. "Taiwanese firms manufacturing for global brands source only from approved vendors to maintain quality and consistency. Once a factory is established, a supplier ecosystem naturally develops around it," he said.

Since 2021, the Tamil Nadu government made a focused and strategic push to attract more Taiwanese OEMs and their supply networks. "A nation-specific cluster strategy builds trust and brings in anchor companies along with Tier 2, 3, and 4 suppliers to form a complete value chain," said industries minister T R B Raaja.

Aqeel Panaruna, director, Grand Atlantia, a joint venture with Hong Fu group, believes that apart from funds, manufacturing tools and technologies and a global customer base can boost TN's industrial landscape. Set to begin construction of a footwear facility at Panapakkam cluster in Ranipet, he said that as the global and domestic demand for footwear is rapidly growing, it presents an immense opportunity for the industry. "Suppliers from Vietnam, Korea, and Japan are eyeing Tamil Nadu," he said.

J Rafiq Ahmed, chairman of Kothari Industrial Corporation and JV partner of Evervan Group, is helping build a major footwear park with 22 Taiwanese component suppliers. "Taiwanese companies have operated here since 2006. Their positive experience has led to this new investment cycle. Collaborations range from technical to facilitative partnerships," he said. He's referring to Feng Tay, which first established a facility in Tiruvannamalai around 2006 and now has six units in the state. While the US tariff poses a short term threat, Taiwanese partnership is slated to provide large-scale employment and deepen integration with global supply chains.