Mini Tirupur textile Parks to come up in South Tamil Nadu

Mini Tirupur Textiles Parks are being planned to be set up in various parts of South Tamil nadu to meet the shorage of labour following the departure of migrant labour from Bihar and Jharkhand following the surge in corona cases a few months ago. Besides South Tamil Nadu has surplus labor since there are very few industries in the area.

Tirupur Exporters’ and Manufacturers’ Association (TEMA) has identified Ayakkaranpulam village in Vedaranyam taluk of Nagapattinam to set up the first such park. Similar parks would come up in Ramanathapuram, Tiruvannamalai, Tirunelveli, Tenkasi and Tuticorin districts in future industry sources said.

Cracker industry has already scaled down its production due to environmental issues

The sources said South Tamil Nadu has no major industries and the only labor oriented industry at Sivakasi is facing serious problems. The cracker industry has already scaled down its production due to environmental issues and competition from cheap chinese goods. With the advent of computers, the printing and stationery industry also is facing less demand.

Textile parks manufacturers expect would cut production costs by over 25 per cent

Shortage of labour in Tirupur, which generates a turnover of around Rs 80,000 crore annually through textile business, has prompted manufacturers and exporters to decentralize operations by setting up textile parks in other districts. Manufacturers expect this would cut production costs by over 25 per cent.

A  Textile Park would be set up on about 50 acres at a cost of Rs 120 crore in Ayyakaranpulam in Nagapatinam district, of which 67 per cent, would be central and state government subsidies. In the first park, 36 exporters and manufacturers would set up units, which would employ  about 10,000 people. The area is also close to Karaikal and Tuticorin Ports for export purposes.

The Park will have cutting, sewing, packing and dispatching units. A skill development centre for workers and creche for their children will also be set up. “The state government has given its nod to the project and construction will commence in the next two months.

Labour shortage is a permanent problem for the industry

“Labour shortage is a permanent problem for the industry. We face high labour turnover. Guest workers, who are 40 per cent% of the workforce of 6 lakh people, keep changing companies. This puts manufacturers’ delivery deadlines under pressure. Decentralisation will help us find a permanent solution to the problem,” he said.

Reducing cost of manufacturing to give competitive edge for hosiery exports

“It will be a win-win situation for industry and the domestic workers. The industry would be able to save on accommodation and transport of workers. The cost cutting could be about deploying less number of workers and lower wages in new textile parks. By reducing cost of manufacturing, we will have a competitive edge for our hosiery exports, the industry sources said.

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