To stay competitive in the fast-evolving market, stakeholders in Tamil Nadu’s textile industry need to modernise existing powerloom units by updating machinery and retrofitting, emphasise industry representatives.
Stakeholders also highlight on the government’s need to address the operational challenges associated with Common Effluent Treatment Plants (CETPs), particularly the management and disposal of sludge generated during the treatment process. This issue is critical for maintaining environmental standards and sustaining industry operations, they say.
The Tamil Nadu Department of Handlooms, Handicrafts, Textiles, and Khadi recently held several discussions with various textile industry associations in Chennai to formulate a new textile policy. This policy aims to align more closely with the current industry needs and build upon the framework of the 2019 textile policy.
The upcoming policy will focus on supporting smaller units, particularly those in the man-made fibre (MMF) sector with a turnover of less than Rs 50 crore. Additionally, the state aims to establish 10 mini textile parks to boost local manufacturing. It also plans to set up an integrated textile park near Salem to support the processing industries in the region.
The new policy will also strengthen Tiruppur’s status as a key player in the apparel value chain. Known for its substantial Rs 35,000 crore export business and Rs 25,000 crore in domestic trade, Tiruppur is expected to lead in Environmental and Social Governance (ESG) initiatives, making it more attractive for investments. The region’s garment sector workforce is predominantly female, with women making up 80 per cent of the employees.
However, industry leaders have expressed concerns over rising electricity costs, which currently average around Rs 9.5 per unit, significantly impacting operational expenses. Associations from Coimbatore and Tiruppur have called for state intervention to support struggling mills. SK Sundararaman, Chairman, Southern India Mills’ Association, highlights, only 60 per cent of textile mills in Tamil Nadu are operational, underscoring the need for swift action. He notes,investment-friendly policies in states like Gujarat, Maharashtra, and Madhya Pradesh are drawing businesses away. Without timely and supportive measures, textile sector in the state could face a severe downturn, he warns.
