Contribution of Textile Industry to

Coimbatore
by
D Lakshminarayanaswamy
Past Chairman, SIMA & CITI

Coimbatore Vizha
6th January 2010, SIMA, Coimbatore

Importance of Textile Industry

Over 5000 years old, mother industry
Second largest employment provider
Accounts for 17% Foreign exchange
14% of Countrys industrial production
Contributes 4% to the countrys GDP
Direct employment to 35 million people
Exports $22 US Bn

Importance of Textile Industry Cont. . .

2nd largest producer of Textiles & clothing
2nd largest producer of cotton and yarn
largest producer of Jute
2nd largest producer of Silk
5th largest producer of Man made fibre &
filament
Last decade
Made 2 lakh crores investment and created 5
million new jobs

Growth of textile industry

Growth of the textile industry

Indian Textile Industry

India vs Coimbatore

Coimbatore accounts
for 13% of the
countrys textile
industry business

Coimbatore Textile Industry

Tamil Nadu accounts for 1/3rd of the Indian Textile
business
Coimbatore accounts for 40% production of
Textiles of Tamil Nadu
Leader in import and export
The 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 growth
SIMA
was
established
in
1933
by
Sir R K Shanmugam and the first Chairman was P S
Sathappa Chettiar
The 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 Group
Recently 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 Shanmugham
South India Viscose was established in 1956
1968 birth of National Textiles Corporation (NTC)
(Coimbatore the head quarters for NTC TN & PC)
SIMA Cotton Development Research Association
(SIMA CDRA) was started in 1974
South India Cotton Association (SICA) was
established in 1977

Contribution of Coimbatore Textile

Industry for the Growth of Indian Textiles
Coimbatore 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 country
Centre 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 Textiles
Cont. . . .

Tirupur little Japan centre for cotton knitted

garments in the world
With 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 facilities
Single largest textile hub of the whole world

Contribution of Coimbatore Textile Industry

for the Growth of Indian Textiles
Made 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 Textile
All 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

Coimbatore
Direct employment
Spinning

1 lakh

Knitted garment
Power loom
Allied industries

2 lakhs
1 lakh
1 lakh

5 lakhs

Indirect employment

5 lakhs

Grand total

10 lakhs

Total

Contribution of Textile Industry to Coimbatore

Cont. . .
Logistics
Housing Sector
Development of Educational Institute
Development of Health Centres
Development of Sports

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

Textile Ministers announcement for

Coimbatore
SVPITM will be converted into an International
Business School for textile management
Rs.150 crores project
NIFT
Centre of Excellence for Technical Textiles

Textile Machinery world leaders

LMW
Manufactures entire range of spinning machinery
Though originally imported technology from
Reiter, today the world leader and recently
established ring frame manufacturing facility at
China
Though 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 leaders

Premier 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)

Veejaylakshmi
- Leading and cost effective manufacturer of Two for
One Twisters and Autoconers

Textool and Jeestex though closed, their

contribution to the spinning sector is phenomenal
and even today you can find larger installation

Textile Machinery world leaders

Many
other
stores
and
accessories
manufacturers based at Coimbatore are the
world leaders
Textile 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 cost
Over 60% domestic yarn and fabrics are sold in the
upcountry
High 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 Coimbatore
Highly skilled entrepreneurship
Sound business ethics and adherence to laws
and statutes
Sound personnel polices
Attractive wages and bonus
Good work culture
Excellent technical support
Good industrial relations
Good working environment

Uniqueness of Coimbatore Cont. . .

Pioneer in encouraging women employment

from early 50s

- First industry to provide large scale employment

opportunity to women folks
- Equal pay for men and women
- Though mostly family managed, always believes
in professionalism and freedom to work
- Adapt new technology

Uniqueness of Coimbatore Cont. . .

Coimbatore has been leading in developing

import substitution and developing cost
effective and sophisticated technology and
supplying to the whole nation

- Command respect in all forums

- Involved in all policy making committee

Conclusion
Coimbatore 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