Textile Park to boost Tamil Nadu Textile units

At present, the textile sector in Tamil Nadu is fragmented and unorganised. Though small and mid-sized units engaged in yarn weaving, dyeing, processing and stitching constitute the bulk of the sector; it is the merchant exporter at the end of the supply chain who walks away with the greater share of revenues, while the SMEs operate on paper-thin margins. However, all this is set to change very soon.

The establishment of a textile park in the Namakkal district promises to change the existing scenario and cluster the scattered SME community in and around the region. The setting up of the park is expected to provide a major boost to the state’s textile sector by ensuring a fair share of export revenues to the SME sector and also by raising the living standard of workers.

Beneficial model for MSMEs

The 45-acre textile park in Komarapalayam in Namakkal, Tamil Nadu has been conceptualised to ensure that its implementation would help in reorganising the textile industry, which has been suffering heavily due to the recessionary pressures. The setting up of the park is expected to integrate the dispersed textile SMEs under an apex organisation — Cauvery Marketing Company (CMC) — which will serve as the point of contact with buyers abroad.

“The integration of fragmented units under one cluster is expected to provide a level playing field to the scattered small textile players. Establishment of the Komarapalayam Park will also ensure that SMEs can grab a larger market share by enhancing their quality with the help of upgraded facilities available in the park,” said M Malli, Manager of Tamil Nadu Textiles, a mid-sized Textiles firm in Chennai.

The setting up of the park is also expected to bring about a marked improvement in the operational efficiency of the textile units in the state and reduce the monopoly of merchant exporters.

Moreover, with CMC acting as an umbrella organisation, small units will also obtain adequate marketing assistance and more business from foreign markets. CMC will take charge of booking orders and negotiating with buyers, exporters and logistics providers.

“The development of a textile park in Namakkal will provide a competitive edge to SMEs in the area and help them upgrade their capacities and modernise their units with the help of CMC,” said A Dharwish, proprietor of Adams Hosieries Impex, a small-sized textile unit in Tirupur.

The model is expected to open up new avenues for textile units as the integrated park would offer end-to-end manufacturing solutions and also pave the way for greater collaborations with bigger players and merchant exporters.

Around 600 workers and business owners from various SMEs in the textile belt of Bhavani, Erode, Pallipalayam, Komarapalayam, Perundurai and Salem are expected to benefit from the establishment of this textile park.

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