India’s banking industry is entering a major ATM replacement cycle after the collapse of a large ATM management company disrupted existing equipment operations and financial institutions began replacing aging machines. The shift is creating new demand for cash recycling technology, putting South Korea’s Hyosung TNS in a position to consider expanding its manufacturing presence in the country.
Hyosung TNS, a South Korean company specializing in ATMs and cash management systems, is considering establishing a manufacturing facility in Tamil Nadu as Indian banks prepare to replace and add more than 17,000 machines over the next six months.
The expected orders are not directed to a single company. India’s ATM market includes multiple global and domestic suppliers competing for contracts. Hyosung TNS is drawing attention because the company already has experience in the Indian market and its technology matches the type of machines banks are increasingly seeking.
The current replacement cycle is being driven by two factors. Indian financial institutions need to replace equipment previously managed by a bankrupt ATM service provider, while many existing machines are also reaching the point where replacement is required.
Instead of simply installing traditional cash dispensing machines, banks are increasingly moving toward cash recycling machines, known as CRMs. About 13,100 of the planned 17,000-plus machines, or roughly 75 percent, are expected to be CRMs.
CRMs allow cash deposited by one customer to be reused for another customer’s withdrawal. For banks operating large ATM networks, the technology can reduce the frequency of cash transportation and replenishment, lowering operating costs.
That demand aligns with Hyosung TNS’s existing business.
The company entered India in 2009 and has built a local presence by supplying large volumes of ATMs to major financial institutions, including State Bank of India, the country’s largest state-owned bank. Hyosung TNS has also developed cash recycling technology, making the company a potential beneficiary as Indian banks shift toward machines that can operate more efficiently.
The opportunity for Hyosung TNS is not simply selling more imported machines. A local manufacturing base could allow the company to reduce logistics and tariff costs while improving its ability to respond to large orders from Indian banks.
Tamil Nadu is seeking to attract that investment.
Sampath Keerthana, Tamil Nadu’s minister for industries, investment promotion and commerce, said after meeting Hyosung executives during a visit to South Korea that Hyosung TNS was considering a new manufacturing facility in the state. The facility would supply ATMs for both the Indian and overseas markets, and the state government said it would provide full support for the potential investment.
The proposal was initiated by the Tamil Nadu government, and the discussions remain at an early stage. Hyosung TNS has not yet begun detailed internal discussions on construction of the facility.
Tamil Nadu’s interest in Hyosung TNS is connected to the state’s broader effort to attract South Korean manufacturing companies.
The state already has a concentration of Korean automotive and electronics suppliers. That existing industrial base provides companies with access to manufacturing infrastructure, component suppliers and maintenance networks, making Tamil Nadu an attractive location for additional Korean investment.
Keerthana’s visit to South Korea included meetings with several Korean companies. She met executives from Hyosung TNS, visited the Ulsan shipyard of HD Hyundai Heavy Industries to review a proposed shipyard project in Thoothukudi, and discussed cooperation with Motilink, a supplier to South Korean automakers Hyundai Motor and Kia that is considering expanding manufacturing operations in Tamil Nadu.
For India, attracting companies such as Hyosung TNS is about more than securing ATM equipment. The country is seeking manufacturers that can establish local production and strengthen industrial capacity. For Hyosung TNS, India represents a market where the company already has customers, technology suited to current demand and an opportunity to move closer to one of its key markets.
The proposed Tamil Nadu factory remains uncertain, but the conditions behind the discussion are clear. India needs to replace thousands of ATMs and is shifting toward cash recycling technology. Hyosung TNS already operates in that market, and Tamil Nadu is attempting to turn existing business ties with South Korea into deeper manufacturing cooperation.
