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Textile companies relish prospects of growth in knitwear hub of India, Tirupur

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Textile companies across India are aggressively targeting most of the apparel manufacturing hubs but when it comes to Tirupur, this aggressiveness comparatively increases more. Right from top and established players of the country to emerging fabric manufacturers, all are geared up for this hub which is targeting Rs. 1 lakh crore apparel export by 2020. Some companies are opening offices in this city, hiring local staff for quick and easy marketing while some are participating in city-based fabric sourcing events, investing more to understand this hub’s requirement and to serve exporters in the best way possible. Apparel Online discussed with some such companies eyeing Tirupur with full spirit to know about the probable reasons that are motivating them to put more thrust on this hub.

Be it yarns or fabrics (knitted-cotton or polyester), established groups or comparatively emerging companies, most of them are on the similar lines of growth in Tirupur. Few of them have their own things or development/offering in their favour while Tirupur’s overall benefits are in the favour of all textile manufacturers. Trident Group is growing in Tirupur with mélange yarns in a good way. Ashish Ahuja, CEO, Yarn Marketing of the company shares, “We had a decent start here in 2012 with 10 to 20 metric tonnes of yarns per month, but now we are doing 200 tonnes of yarns per month (only mélanges). I feel that Tirupur is the only hub in India which can compete with Bangladesh or Vietnam, as Delhi-NCR, Ludhiana or even Kolkata are not as competitive as Tirupur is. So, this is our major focus area.” Nomination business from top brands like H&M, C&A, Mothercare, Decathlon are also of great help to the company.

Alok Industries Limited opened its Tirupur office last year and few months back, it had participated for the first time in the city-based fabric sourcing event. “We are more than happy with our performance in Tirupur and are increasing our visibility in Tirupur. With local office and local staff, we have better connectivity with our Tirupur-based clients,” told Sunil Krishnan, V-P, HOD (Knits Marketing) of the company. The company is working with many top exporters of Tirupur like Eastman Exports, SCM, KPR Mill and Quantum Knits etc.

Grasim Industries Limited (Birla Cellulose) is one of the other organizations enjoying positive opportunities in Tirupur as well as in allied areas. V Ramesh, AGM, Marketing & Business Development averred, “We can proudly say that out of the quantity we sold within India, 50 to 60 per cent are consumed in south India only, so Tirupur is also a big market for us and we are taking utmost care to grow in this market.” The company is supporting manufacturers in product development and marketing with its products which include viscose, modal and excel fibres. Viscose is a core product of the company for this market but modal and excel fibres are also picking up.

“We are supporting manufacturers in product development and marketing with our products which include viscose, modal and excel fibres.” – V Ramesh, AGM, Marketing & Business Development, Grasim Industries Limited (Birla Cellulose)

Akhil (L) with Dhruv, EDs, Versatile Enterprises

Tilt in product offering is a key factor triggering the growth expectation of many companies as Tirupur is now not only doing basic garments but also moving towards value-added garments. Mercury Fabrics, one of the most respected name in quality knitted fabric in Delhi-NCR, is also quite positive for Tirupur due to increase in manufacturing of high-fashion womenswear. Rahul Sachdeva, Director of the company stated, “As basic segment is moving towards Bangladesh, now Tirupur is attracting more value-added, high-value fashion garment for good price and better profitability. We are supporting Tirupur through high-value-added fabrics for high fashion brands which is not a strength of Tirupur but we have expertise in this domain. It helps garment exporters there to get more orders from their buyers. There are in fact several such garment exporters based at Tirupur who are doing high-fashion womenswear or venturing into the same. Tirupur is definitely a booming growth area for us, and we have already achieved a lot from here. Further as more and more companies are showing significant interest in more high-priced fabric garments, our market share will surely grow.” Rahul doesn’t see overall much difference between Delhi-NCR and Tirupur-based exporters doing high value-added garments.

Rahul Sachdeva, Director, Mercury Fabrics

Known for its quality printed knitted fabric, Komal Texfab, Ahmedabad is catering to Tirupur from almost three decades and getting reasonably strong business from the hub. Naveen Nandi, AVP (Operation) of the company informed, “We are supplying 200 tonnes knitted printed fabric per month and are expecting very good growth in coming years too. There is proper linkage between Tirupur and nearby hubs with regard to variety of yarns, fabric and allied material for womenswear which creates more opportunity for everyone and ensures growth too. And in terms of printed fabric, we are supporting them.” The company is catering to exporters as well as manufacturers for domestic market in Tirupur.

Fabric companies are also benefiting from the quick decision making process in Tirupur which is very fast compared to many other hubs. It creates ease of business for fabric companies.

Specialized fabrics are also witnessing growing demand in Tirupur. Offering technical fabrics, Versatile Enterprises, Ludhiana is seeing strong demand for this category. Akhil Seth, ED of the company informed, “We have noticed that Tirupur has refused orders based on these kinds of fabrics in previous years but now, they are grabbing these orders as we have technical fabrics to support them.”

Naveen Nandi, (L) AVP (Operation), Komal Texfab

The companies targeting Tirupur have not only enjoyed growth there in the recent years, but are also sure about more business coming in further years and that too in the polyester segment which is not strong in Tirupur compared to cotton. Bhilosa Industries, Mumbai currently produces 1500 tonnes per day and this capacity will be doubled soon. The company’s President (Marketing & Sales) Sandeep Rohilla shared, “Earlier we were selling 100 tonnes per month, but now our sale is 800 tonnes per month in Tirupur. We are happy with this development as Tirupur is a cotton dominated market, but our R&D based innovative polyester is helping them to reduce the final product’s cost.” Sandeep is expecting three times growth in the next four years with regard to Tirupur. “Increasing price pressure on garment manufacturers is motivating them to use more and more polyester,” he added.

N Arivalagan, Divisional Head, Pranera Textile

Apart from established groups, local companies are also geared up for the fabric segment and are enjoying their share of growth, that too in polyester segment. One such example is Pranera Textile, Tirupur. The company started in 2008 as an apparel sourcing unit but its promoters soon realized that there is lot of polyester fabric requirement in south India and took this as a challenge. N Arivalagan, Divisional Head of the company shared, “We started selling polyester knitted fabric four years back and expanded to all kinds of polyester fabrics like woven, embroidered etc. Now we have a variety of fabrics under one roof.” Focusing on exporters as well as the domestic market, it keeps ready stock fabric for whatever amount the customer requires and offers made on orders too. Happy with the market response, the company is currently moving forward with recycled polyester, regenerated cotton polyester and special finished fabric also. Having own knitting and dyeing capacity of 15 tonnes per week, it has own digital sublimation unit with a printing capacity of 3,000 metres per day. “We are looking for more growth in sportswear-related fabric and are geared up for this offering to our clients,” adds Arivalagan.