Thiagarajar Mills Limited, a cornerstone of India’s textile industry, has thrived on a legacy of excellence and adaptability. As the third-generation leader, Hari Thiagarajan is taking the family legacy forward with a visionary approach to growth and sustainability. Under his stewardship, the company is embarking on an ambitious expansion journey that includes increasing its spinning capacity, setting up a cutting-edge processing unit, and advancing his passion for skill development through a dedicated skilling institute. These initiatives reflect his commitment to not just scaling operations but also empowering the industry and workforce with forward-thinking solutions.
A Legacy of Quality in Spinning
Thiagarajar Mills was founded by Hari Thiagarajan’s grandfather Karumuttu Thiagaraja Chettiar and later nurtured by his father Karumuttu T Kannan. It has long been synonymous with fine-count spinning, setting benchmarks for quality and reliability. Operating with a capacity of 110,000 spindles, the company specializes in producing high-quality, 100% cotton yarns, primarily catering to export markets. The mill’s reputation for excellence stems from its careful selection of raw materials, including imported extra-long staple cotton varieties such as Giza from Egypt, Supima from the US, and contamination-free cotton from Australia. With a strong focus on innovation, the company employs advanced technologies like TFOs (Two-for-One Twisters) and gassing machines to enhance yarn quality, especially for fine-count shirting fabrics and hosiery products, which find significant demand in the Italian market.
Navigating Global Market Challenges
The global textile landscape has become increasingly complex, and Thiagarajar Mills is feeling the effects of these shifts, particularly in Europe. A prolonged recession in core markets like Germany and Italy has slowed demand, creating hurdles for export-oriented businesses. Additionally, the concept of near-shoring in Europe, aimed at shortening supply chains, has intensified competition from countries like Turkey and Uzbekistan. Delays in shipping and logistical inefficiencies further compound these challenges, making Indian exporters less competitive in terms of lead times. Despite these obstacles, Hari Thiagarajan believes that diversification is key. He emphasizes the importance of exploring alternate markets, such as the US and Canada, which have shown resilience. Moreover, he sees untapped potential in India’s growing domestic market, driven by an expanding middle class and rising disposable incomes.
Expansion Plans: Strengthening Operations and Diversifying Capabilities
As part of its growth roadmap, Thiagarajar Mills plans to expand its spinning capacity by adding 15, 000 spindles. This move comes in response to rising domestic and international demand for high-quality yarn, particularly cotton and blended varieties. By increasing production capacity, the company aims to not only meet the growing market needs but also improve economies of scale, enhancing cost efficiencies across its operations.
This expansion will include investments in advanced machinery, such as automated winding machines and AI-driven technologies, to ensure superior quality and operational efficiency. The focus is on adopting innovations that minimize downtime, reduce waste, and increase productivity, aligning with global best practices in textile manufacturing.
Processing Unit at PM MITRA Park
One of the most exciting aspects of Thiagarajar Mills’ expansion plans is the proposed setup of a cutting-edge processing unit in a PM MITRA Park coming up at Virudhunagar. These parks, envisioned by the Indian government, aim to create world-class infrastructure for the textile industry, fostering a robust ecosystem for spinning, weaving, processing, and garment manufacturing.
The new processing unit will enable Thiagarajar Mills to move closer to vertical integration, offering finishing capabilities that complement its spinning operations. This step will allow the company to diversify its offerings by producing high-value processed fabrics, catering to both domestic and export markets.
The processing unit will be designed with a strong emphasis on sustainability. Plans include the installation of renewable energy solutions, such as solar and wind power, and water recycling systems to reduce environmental impact. The unit will also adhere to stringent international standards for quality and compliance, making it a preferred partner for global brands.
Moving Closer to the Customer
Thiagarajar Mills is transforming its business strategy to focus on value addition and customer proximity. Traditionally a B2B business, the company now seeks to create finished products, such as cotton-linen blends, to appeal directly to end consumers. “The strategy is to be one step or two steps closer to the customer than we were a few years back,” Hari Thiagarajan explains. This shift aims to diversify revenue streams, enhance profitability, and strengthen the company’s market position.
Skill-Building: A Vision for Empowering the Workforce
One of Hari Thiagarajan’s most ambitious goals is addressing the critical skill gap in the textile industry. He envisions establishing a comprehensive skill-building hub in southern Tamil Nadu, which will cater to Thiagarajar Mills and the broader industry. This initiative is deeply personal, fulfilling a long-held wish of his late father to contribute to workforce development.
The proposed hub will offer short-term, flexible courses designed to equip workers with both traditional and advanced technical skills. “Education is becoming more fluid, and some skills may not take too long to learn,” he notes. By integrating cutting-edge technologies like AI and automation, the center will prepare workers for the future while maintaining a balance between man and machine.
The hub will also explore launching a fashion technology program, filling a significant gap in the region’s educational offerings. “Textile technology may not attract students today, but fashion technology has strong potential,” Hari Thiagarajan observes. Collaborating with industry bodies like SITRA and SIMA, the center will provide high-quality training and certification, creating a skilled and employable workforce.
Balancing Tradition and Innovation
While automation is reshaping the textile industry, Hari Thiagarajan stresses the importance of maintaining a human touch. “Automation is the way forward, but you still need the man-machine interface,” he asserts. By combining traditional skills with advanced technology training, the proposed hub will ensure a holistic approach to workforce development.
Carving a Niche in a Challenging Landscape
The textile industry is fraught with challenges, including limited margins, oversupply, and structural inefficiencies. Unlike sectors like IT or services, textiles demand a more cautious approach to growth. Hari Thiagarajan emphasizes the need to create a niche while avoiding over-leveraging or over-expansion. “This is the only business we’ve been exposed to,” he states, underscoring the family’s dedication to the sector while remaining open to opportunities in other industries.
Despite its challenges, Hari Thiagarajan is optimistic about the enduring relevance of textiles, citing clothing as a fundamental human need alongside food and shelter. With India poised to become the third-largest economy and its demographic dividend growing, he envisions a bright future for the industry, particularly as domestic and international demand rises. He highlights textiles as the second-largest employer in India after agriculture, making its survival critical for sustaining millions of livelihoods.
Government Support and Strategic Investments
Government policies and subsidies play a crucial role in fostering growth in the textile sector. However, Hari Thiagarajan cautions against basing investments solely on these incentives. “You invest because you have a business plan, not just for subsidies,” he asserts. While he acknowledges the government’s efforts in renewable energy and other areas, he calls for stronger policies to ease operational challenges, particularly in solar and wind energy.
He recognizes the cyclical nature of the economy, where investment and employment lead to increased consumer spending and government revenue. This cycle, he believes, is essential for driving sustainable economic growth.
Looking Ahead: A Strategy for Sustainable Growth
Hari Thiagarajan outlines three key pillars for Thiagarajar Mills’ future: value addition, cautious yet optimistic growth, and workforce skilling. The company’s immediate focus is to launch the skill-building initiative within a year, starting small but with plans for a dedicated training center in the future. This center will not only serve the company but also contribute to the broader industry, aligning with Thiagarajar Mills’ commitment to community development.
Under Hari Thiagarajan’s forward-thinking leadership, Thiagarajar Mills is set to redefine its role in the textile industry. By focusing on value addition, customer-centric strategies, and comprehensive workforce development, the company is building a robust foundation for sustainable growth. As India’s textile landscape evolves, Thiagarajar Mills’ dual commitment to innovation and skill-building positions it as a leader poised to thrive in the global market while empowering the industry’s workforce.
