Tirupur Textile Exporters Facing Tough Times

Feb. 13, 2009 - PRLog -- The textile export sector of Tirupur in Tamil Nadu is in a dire state as small and mid-sized units, forming the bulk of the industry, have continued to report losses. Exports have plummeted drastically in 2008 and the export growth projections for the current year continue to reflect a similar downward trend. While a large number of small scale exporting units in Tirupur have closed down in the past few months, some others are exploring opportunities in other businesses.

The lamentable state of textile units in Tirupur is largely attributed to the dwindling demand and contraction of orders by international clients. The textile SMEs are mainly dependent on Western markets like the US, UK and Europe for the export of their hosiery and knitwear items. The EU countries account for nearly 50% to 55% of the total textile exports from Tirupur, while 30% to 35% of it goes to the US. However, the past few months have witnessed a 30% decline in international orders placed with the Tirupur knitwear cluster—primarily constituted of small and medium enterprises (SMEs).

Following a steep reduction in orders, many units have now cut down their production as well as reduced the number of shifts by resorting to a five-day week routine. About 20,000 workers employed in different segments of the manufacturing chain in the Tirupur knitwear cluster have been rendered jobless due to the market crunch. The textile industry of the town is witnessing a 25% to 30% decline in growth this year.

To prevent the crisis from aggravating further, industry bodies like Tirupur Exporters Association (TEA) have urged the government to take immediate measures in an attempt to revive the highest revenue generating industry in the district. Initiatives like providing adequate finance, subsidy on raw materials and introducing concentrated marketing efforts can help the textile industry tide over the ongoing crisis.

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Saurabh Garg
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