In an effort to build on the attractive growth prospects in Tamil Nadu and the Governmentâ€™s commitment in maintaining the stateâ€™s position as one of Indiaâ€™s most preferred investment destinations, a Global Investorsâ€™ Meet has been organized that is likely to turn into a bonanza in terms of new projects in all the right places and sectors especially textile sector.
Tamil Nadu is one of the leading states in India in Textile Industries. It houses the countryâ€™s largest spinning industry accounting for almost 40% of the total installed capacity in India. It has a complete ecosystem of textile industry. Tamil Nadu is home to the knitting industry and has the biggest knitting cluster in India â€“ Tirupur.
Tamil Nadu ranks 1st in the Apparels Industry and 2nd in the Textile Industry in terms of percentage contribution by state in the total industrial output of respective industries in India.
According to sources in the know, the sector alone is likely to get a cumulative investment of Rs 4,500 crore come September 9 and these investments will primarily be higher up the value chain. The investments are set to give a substantial fillip in terms of employment generation and stimulus to ancillary industries.
Highly placed sources told the Express last week that MoUs worth Rs 4,500 crore are set to be signed in the Textiles and Apparels sector when the Global Investment Meet kicks off.
According to Manickam Ramaswami of Loyal Textiles, one of the largest textile companies in India, the bulk of this investment is likely to come in the garment and the apparels sector, because that is where the opportunity is. They themselves are signing MoUs for investment worth Rs 150-220 crore in the GIM and they are in the dyeing and finishing sector and in the garmenting sector.
A bulk of this investment is also set to be around the new Cuddalore Textile Park, Ramaswami pointed out.
If investment really is concentrated in these sectors and those higher up the value chain, industry experts say it would be of immense benefit to the state and its workforce.
There had been a lot of investment in the spinning sector between 2005-2010 driven by the Technology Upgradation Fund. But it slackened off in the meantime. But if they get investments in garments and apparel, that can make use of the large capacity they have for spinning it would be very beneficial, said R Rajkumar, Managing Director of Best Corporation.
The inclusion of more new projects higher up the value chain will strengthen a sector that already has elements of the whole textile value chain - from cotton to garment making. The projects could also help soak up the slack in demand for yarn caused by Chinaâ€™s burning out.
But new projects in gramenting for example will create a lot of employment. It is going to be very beneficial for farm workers who are losing their jobs - they could find easy employment in these areas.
The Global Investorsâ€™ Meet to take place on 9th and 10th September, 2015, at Chennai Trade Centre, Chennai, Tamil Nadu.
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