Coimbatore Vizha6th January 2010, SIMA, CoimbatoreContribution of Textile Industry to Coimbatore

by D LakshminarayanaswamyPast Chairman, SIMA & CITI

Importance of Textile IndustryOver 5000 years old, mother industrySecond largest employment providerAccounts for 17% Foreign exchange14% of Countrys industrial productionContributes 4% to the countrys GDPDirect employment to 35 million peopleExports $22 US Bn

2nd largest producer of Textiles & clothing2nd largest producer of cotton and yarnlargest producer of Jute2nd largest producer of Silk5th largest producer of Man made fibre & filament Last decade Made 2 lakh crores investment and created 5 million new jobsImportance of Textile Industry Cont. . .

Growth of textile industry

Growth of the textile industry

Indian Textile Industry

India vs CoimbatoreCoimbatore accounts for 13% of the countrys textile industry business

Coimbatore Textile IndustryTamil Nadu accounts for 1/3rd of the Indian Textile businessCoimbatore accounts for 40% production of Textiles of Tamil NaduLeader in import and exportThe first mill in coimbatore, Coimbatore Spg & Wvg Mills was established in 1890 by Sir Robert Stanes followed by Kaleeswara Mills, Somasundaram Mills, Lakshmi Mills, Radhakrishna Mills and Rangavilas Ginning, Spg & Weaving Mills

Coimbatore Textile Industry Cont.. Pykara Hydroelectric Project was commissioned in 1932 => led to sudden spurt in the growthSIMA was established in 1933 by Sir R K Shanmugam and the first Chairman was P S Sathappa ChettiarThe visionary leaders behind the development of Coimbatore Textile Industry were Shri G Kuppuswamy Naidu and his sons (Shri G K D & Shri G K S), R Venkataswamy Naidu, C S Ratnasabapathy Mdualiar and PS Govindaswamy and sons

Coimbatore Textile Industry Cont.. Other prominent textile companies behind the growth of Coimbatore Ramakrishna Group, Premier GroupRecently KPR Group and Bannari Amman Group have contributed to the growth

SIMA

Coimbatore Textile Industry Cont.. South India Textile Research Association (SITRA) was started in 1955 by Sir R K ShanmughamSouth India Viscose was established in 19561968 birth of National Textiles Corporation (NTC) (Coimbatore the head quarters for NTC TN & PC)SIMA Cotton Development Research Association (SIMA CDRA) was started in 1974South India Cotton Association (SICA) was established in 1977

Contribution of Coimbatore Textile Industry for the Growth of Indian TextilesCoimbatore NO more Manchester of South India it is the hub for Textile business in the Global map A, B & C Historically major clusters for Textile Industry C could overcome all challenges and continue to attract large scale investments and today it is called as the Textile City of the countryCentre for textile machinery, spares, accessories and equipment manufacturing Cbe is not only the largest supplier to the nation but also to the whole world

Contribution of Coimbatore Textile Industry for the Growth of Indian TextilesCont. . . .Tirupur little Japan centre for cotton knitted garments in the worldWith Coimbatore as the epicentre, a 100 km radius has the entire textile value chain from fibre to garments/made-ups including all the machinery, spares and accessories manufacturing facilitiesSingle largest textile hub of the whole world

Contribution of Coimbatore Textile Industry for the Growth of Indian TextilesMade the government to locate all the regional offices for the entire south India at Coimbatore Office of the Textile Commissioner, Textiles Committee, SITRA, Income Tax Office, Commercial tax, central excise and Customs Commissionerate, SVPITM, Centre of Excellence for Medical TextileAll India Textile Assn, Textile Institute, Coimbatore Productivity Council, Engineering Industry and its Associations, Export Promotion Councils, TNAU, Bharathiar and Anna University, etc.,

Contribution of Textile Industry to CoimbatoreDirect employmentSpinning - 1 lakhKnitted garment-2 lakhsPower loom-1 lakhAllied industries-1 lakh Total-5 lakhsIndirect employment - 5 lakhsGrand total - 10 lakhs

Contribution of Textile Industry to CoimbatoreCont. . . LogisticsHousing SectorDevelopment of Educational InstituteDevelopment of Health CentresDevelopment of Sports

CharitiesMajor contributor for all natural calamities like earth quake, flood, tsunami and also supporting the victims of wars, etcMajor contributor for infrastructure development like stadium, construction of temples, etc. Noon meal scheme

Textile Ministers announcement for CoimbatoreSVPITM will be converted into an International Business School for textile management Rs.150 crores projectNIFTCentre of Excellence for Technical Textiles

Textile Machinery world leadersLMW Manufactures entire range of spinning machineryThough originally imported technology from Reiter, today the world leader and recently established ring frame manufacturing facility at ChinaThough Chinese machinery were cheaper and readily available, mills preferred LMW due to cost effectiveness, quality, excellent after sales service, transparent policy, etc.LMW is the most preferred spinning machinery supplier in the world

Textile Machinery world leadersPremier Evolvics A world leader in manufacturing textile testing equipments in a cost effective manner with excellent after sales service and quality and technology (on par with world leaders like Uster)VeejaylakshmiLeading and cost effective manufacturer of Two for One Twisters and AutoconersTextool and Jeestex though closed, their contribution to the spinning sector is phenomenal and even today you can find larger installation

Textile Machinery world leadersMany other stores and accessories manufacturers based at Coimbatore are the world leadersTextile machinery and spares designing and manufacturing skills of Coimbatore Entrepreneurs later diverted in the area of manufacturing pumps, auto components and various other precision components

95% of the raw material (both cotton and man-made fibres) purchased from upcountry or imported by spending almost 10 to 15% additional costOver 60% domestic yarn and fabrics are sold in the upcountryHigh power cost (today acute power shortage)High labour cost (today labour shortage)AP mills have atleast 20% cost advantage when compared to Coimbatore mills

Uniqueness of CoimbatoreHighly skilled entrepreneurshipSound business ethics and adherence to laws and statutesSound personnel policesAttractive wages and bonusGood work cultureExcellent technical support Good industrial relationsGood working environment

- Pioneer in encouraging women employment from early 50sFirst industry to provide large scale employment opportunity to women folks-Equal pay for men and womenThough mostly family managed, always believes in professionalism and freedom to workAdapt new technologyUniqueness of Coimbatore Cont. . .

- Coimbatore has been leading in developing import substitution and developing cost effective and sophisticated technology and supplying to the whole nationCommand respect in all forumsInvolved in all policy making committeeUniqueness of Coimbatore Cont. . .

ConclusionCoimbatore has been, is and will be the number one textile city in the whole world The economy, standard of living and the prosperity of Coimbatore has always been reflected by the overall performance of the textile industry