Under the agreement, Yue Yuen will invest 23 billion rupees (276 million US dollars) over a period of twelve years, while the regional government will provide infrastructure support for the project, which includes power, water supply, telecommunication facilities and road widening and 182.75 acres in a special economic zone being set up in Ulundurpet, Kallakurichi District. Certain subsidies and exemptions or concessions concerning some taxes and duties were also agreed.

With this move, the group intends to diversify its manufacturing base, as well as profit from India's “large supply of labour” and “favourable government policies to support the sustainable growth of the Group’s business”. Moreover, “the Directors are of the view that the investment in the Project would be able to expand and diversify the Group's production capacities in an economically sound manner and also fulfil its corporate social responsibility to make a positive contribution to the neighbourhood communities”, reads Yue Yuen's statement.

The state of Tamil Nadu has been benefiting from the demand of many global brands that are seeking to diversify their manufacturing base away from China and Taiwan. Regarding footwear, a government agency reported that the state accounted for 45% of India’s footwear exports in the past five years.