Most of the textile/garmenting hubs in India have a unique identity which is their strength, but Erode in Tamil Nadu can be said to be an exception to this rule as this city has many products to offer and is reasonably good in manufacturing variety of yarn, fabric, apparels and home furnishing products, as it is in leather processing. With a wide product base, players in the city are equally clued into working with the domestic as well as export market. Another unusual fact about the hub, which is rare in other hubs, is that most of the manufacturers are satisfied with the local infrastructure and labour availability. With almost 1.50 lakh powerlooms functioning in Erode and its nearby areas of Komarapalayam and Tiruchengodu, the region has more than 100 home furnishing companies exporting across the world, mainly bed sheets and table linen. Majority of the products in home segment manufactured in the centre are for domestic market but exports (table linen, bed-sheets) are also growing. Apparel Online talked to some home furnishing companies to bring an update on the hub.
Like in other sourcing hubs of India, orders from the international market in Erode too are a little slow, but it is not a big issue for the centre because most of the manufacturers understand that buyers are ready to place more orders but price pressures in their home market is making it difficult, so these very upfront exporters are negotiating hard on raw material prices and reducing margins. Positivity is in the air as some exporters expect that the currently decreasing yarn prices will help them to be more competitive. “No doubt currently we are running only 60 per cent of our capacities, but correction on raw material prices, as well as at buyer’s front will strengthen the position in coming months,” says VT Karunanidhi, MD of Karuna Textiles. The company offers various kinds of fabric as well as garments and home furnishing products. Bedspreads, pillow covers and kitchen linen are some of the main products of Karuna Textiles.
Compared to other hubs of home furnishing like Panipat, Erode has enough supply of electricity to feed the industry, and also boast of reasonably good infrastructure like roads and logistic services, because of which companies are satisfied on these issues. For most of the companies even labour availability is not a big issue as they are able to manage the required workforce effectively. “Apart from pollution issues, which have been dogging the industry for some time we don’t see any challenge of manufacturing in this city, be it for domestic or export purpose,” says Yuvarajan, Owner, Shree Karpaga Vinayakar Textile. The company is exporting towels and aprons to many countries, like the US and Australia, and is dealing in a variety of products apart from home segment, including organic clothing. The companies especially those into exports, are offering quality product as they know that there is no survival without quality work. Yuvarajan claims that apart from few domestic players most of the manufacturers are producing quality products and buyers are satisfied with it.
Though earlier there was an impression that though Erode has reasonably good quality, it is not much into product development and is offering similar or ‘a set’ kinds of designs and products, but industry watchers feel that this opinion has changed over the last few years, as companies are doing good work in designing/ PD. Selva A, Merchandising Head, Sri Kalyan Exports says, “Though it depends from company to company, this city is not lacking behind in PD as far as exports is concerned and we as a company consider product development as our strength.” Sri Kalyan Exports is a Chennai based company having a unit in Erode. It is an ISO 9001:2008 certified company and has a complete range of home furnishing. The company also offers organic products and its buyers are now asking for baby products in organic segment.
Most of the home furnishing companies are into yarn and fabric business also, be it manufacturing or just trading; so whenever they feel that a particular segment will be weak, they start focusing on another segment rather than sitting idle. VP Tex is another company in Erode which is into fabric (viscose, rayon, etc.) as well as into home products and the company has focused a lot on fabric segment. P. Elango, Managing Director of SSM Processing Mills, Komarapalayam known for its printing too strengthen the fact, “Erode is focusing and growing in all the segments of textile be it yarn, fabric, garments or home furnishing so no one can say that home products are being highlighted here but as we are supplying to more than two dozen home furnishing players, I can say with confidence that they are doing well. Even we expect 30 per cent growth this year.”
The city is having an edge in raw fabric availability being a powerloom hub, but this advantage loses force as for wider width printing the centre is still dependant on Gujarat which not only adds extra cost but also extra time; sometimes quality and quantity issues also occur. R. Subramanian, Director, Emes Textiles exporting bedsheets to Middle-east, US and some other countries, is one of the companies that is getting its processing done from Surat/ Ahmedabad. But Erode-based processors claim that though quality processing is being offered by them to save money, some manufacturers get the processing done out of Erode. Even Karur which is doing well in home segment too is getting the processing done from Erode.
As of now the only issue which seems to be a concern in the hub is the lack of CETP with zero liquid discharge capabilities, but the good thing is that now the city is more aware of pollution-related issues and the dyeing/processing units are following proper norms by installing water treatment plants. Tamil Nadu Water Investment Company (TWIC) is working on the proposal to set up a combined effluent treatment plants for textile dyeing units in five locations – Erode, Salem, Namakkal, Komarapalayam and Karur.
There is a need in Erode to develop a cluster with Government subsidies as currently now most of the units are scattered. “If these units come together at a single place, it will be really helpful and convenient for setting up of a CETP also. There are almost 10 units in SIPCOT industrial estate and they are having their own CETP. Similarly if the entire Erode industry gets some land on subsided price it will really help,” concludes Subramanian.
