Madurai-based Thiagarajar Mills, part of the Thiagarajar Group, has signed a memorandum of understanding (MoU) with Germany-based Euro Textiles GmbH & Co. KG, a textile trading, sourcing and import management company, to set up a specialised fabric manufacturing unit in Virudhunagar, Tamil Nadu, with a proposed investment of Rs 100 crore.
The proposed facility will manufacture 100% cotton jacquard fabrics, with an initial annual production capacity of 3 million metres. The first phase will include 48 advanced air-jet looms equipped with Jacquard technology, along with warping and sizing facilities. Commercial production is expected to begin within eight to ten months.
The joint venture, in which the Thiagarajar Group will hold a majority stake, will initially focus on exports, particularly grey fabric shipments to Germany, before exploring opportunities in the domestic market. Thiagarajar Mills will supply the yarn required for production.
The second phase of the project envisages doubling the annual production capacity to 6 million metres. It will also focus on value-added technical textiles and specialised patented fabrics for niche markets.
The investment comes as India seeks to expand its share of the European textile and apparel market. According to India’s Ministry of Textiles, the European Union imported US$ 263.5 billion worth of textiles and apparel globally in 2024.
According to the company, India’s fabric exports to the European Union stood at approximately US$ 0.08 billion in 2025, compared with EU fabric imports valued at US$ 2.38 billion. The proposed facility aims to tap this market opportunity.
The India-EU Free Trade Agreement, for which negotiations concluded in January 2026, could further improve market access for Indian textile exporters once it enters into force.
Tamil Nadu continues to attract investments in textile manufacturing, with companies announcing new facilities and capacity expansions across the state in 2026.
For instance Pallavaa Group has proposed a Rs 1,000-crore integrated textile facility at PM MITRA Park in Virudhunagar, while KPR Mill has approved manufacturing projects worth Rs 1,225 crore, including a Rs 250-crore textile processing unit in Perundurai and a Rs 75-crore sweater manufacturing facility in Karumathampatti, Coimbatore.
Meanwhile, TechnoSport has also signed an MoU with the Tamil Nadu government to invest Rs 130 crore in the second phase of its existing manufacturing facility in Erode.
