TEA’s special drive to further stabilise knitwear sector
The textile cluster of Tirupur never ceases to amaze. A small, nondescript city going on to become a key global hub for knitwear is stuff right out of fantasy. The Textile Magazine takes a closer look at what gives the city its competitive edge when it comes to exports.
Speaking exclusively to the magazine, Dr. A. Sakthivel, President of the Tirupur Exporters’ Association (TEA), gave detailed insights into the achievements of the Association, its key focus areas and what makes Tirupur tick.
Not for nothing do they say appearances can be deceiving. Perhaps nowhere is this statement more apt than in the case of Tirupur, the undisputed knitwear capital of India. A cursory first glance once you enter the city will give you no indication that Tirupur is indeed the place where every leading global garment brand worth its name has got a connection with. With its busy traffic, meandering lanes and bylanes, heat and dust, you can be forgiven for mistaking it for yet another typical, small Indian city. Think again, for this is not just another run-of-the-mill city. This is Tirupur, a city that has clocked exports of over Rs. 20,000 crores in 2014-15. This is a city whose entrepreneurs have done India proud and firmly placed its name on the global garment map.
Silver Jubilee year
The textile industry provides employment to over six lakh people in Tirupur, located on the banks of the Noyyal River in western Tamil Nadu. The daring enterprise, incredible business acumen and sheer hard work of its first generation entrepreneurs catapulted the city into national and international limelight during the 1990s. The subsequent generation carried forward the growth momentum and made sure that the name Tirupur remains firmly entrenched in the mindset of foreign buyers. From North America to South America to Europe, it is not surprising that Tirupur has become the favorite of every buyer.
The key triggering factor for Tirupur attaining global fame was without any doubt the formation of TEA. Its formation in 1990 came as a shot in the arm for exporters. The rest, as they say, has been history. There has been no looking back since then for Tirupur and its entrepreneurs. TEA, which celebrated its Silver Jubilee celebrations in 2014, has emerged a unique, one-of-its-kind industry association in the country.
Amazing foresight
Famous Irish playwright Oscar Wilde once stated that a visionary is one who can find his way by moonlight and see the dawn before the rest of the world. The ability to foresee the future is what sets visionaries from the rest of the crowd. In the case of Tirupur, Dr. Sakthivel has been the visionary whose selfless toil as the TEA President for over two decades has been propelling the Tirupur growth, from one stupendous success to another. A winner of the prestigious Padma Shri Award, Dr. Sakthivel was determined to make Tirupur a global outsourcing hub for everything related to knitwear. His initiatives helped Tirupur’s entrepreneurs dream big and achieve remarkable results.
Dr. Sakthivel’s eventful journey in the textile industry started in the early 1970s. “At the time of my entry this was only a Rs. 5-6 crore industry,” said Dr. Sakthivel recollecting the past. According to him, his own business – Poppys Knitwear – was among four or five companies which were into exports around 1980. The Poppy’s Group has now diversified into other businesses, including hotels and ancillary units, apart from carving a niche for itself in the field of textiles.
He added that in 1985 exports amounted only to Rs. 15 crores. A year before, in 1984, he became the first south Indian to become a member of the Apparel Export Promotion Council (AEPC).
Dr. Sakthivel was always driven by his passion to do something for the society, trade and the city of Tirupur. As an AEPC member he single-handedly went about bringing industry experts to Tirupur, while also simultaneously urging the entrepreneurs there to take to exports. It was then that a few entrepreneurs came forward and suggested formation of an industry association, so that much more can be achieved. Thus was born TEA in 1990, with Dr. Sakthivel as its President. His yeoman service as President for well over two decades has seen TEA grow from strength to strength to become one of the foremost industry associations in the country.
When TEA was formed, Tirupur’s exports were about Rs. 270 crores. Dr. Sakthivel’s visionary zeal made him realise that, given the inherent potential of the industry and the hard working nature of the city’s entrepreneurs, a lot more can be attained. “We fixed an export target of Rs. 1,000 crore to be reached within the next three years and achieve it.” This scorching pace set in 1993 set the tone for the tremendous growth in the years to follow.
The focus, along with that of exports, was also on development of infrastructure facilities. Dr. Sakthivel, while listing down the key focus areas, observed: “We thought we should have our own industry complex. We diligently worked towards setting up the Tirupur Export Knitwear Industrial Complex (TEKIC) in Mudalipalayam with 200 sheds. We then thought that it was time we had our own container depot and, with the setting up of the Inland Container Depot (ICD), this mission was achieved. We then established the TEA Public School. This was followed by the establishment of a fashion knitwear institute. Since I was a member of the National Institute of Fashion Technology (NIFT), we set up the NIFT-TEA Knitwear Fashion Institute.”
One successful project followed another under the dynamic leadership of Dr. Sakthivel. Another feather in TEA cap has been the formation of the New Tirupur Development Corporation (NTADCL). It is a public limited company promoted by TEA jointly with the Central and State Governments and Infrastructure Leasing and Financial Services Ltd. (IL & FS), Mumbai, to supply water from the Cauvery river, about 55 km away from Tirupur, for industrial and domestic use. Considered a first-of-its-kind project executed successfully in the Public-Private Partnership (PPP) mode in the entire Asian region, it has received global recognition.
Further, under Dr. Sakthivel’s able stewardship, the India Knit Fair (IKF) centre was set up. The 40th IKF fair was recently held in the complex.
The Netaji Apparel Park, with 52 knitwear units, is yet another example of the vision that Dr. Sakthivel has for Tirupur. He has also been instrumental in TEA entering into a memorandum of understanding (MoU) with Microsoft Corporation (India) Pvt. Ltd. to set up e-readiness centers in the city. TEA – St. John Logistics Private Ltd., a joint venture company for smoothening of logistics process for exports from Tirupur, is yet another successful initiative taken by him.
Serving the trade, society and city
Dwelling on the aspect of giving back to the society and the philosophy behind TEA’s growth, Dr. Sakthivel said: “We always wanted our association to be unique. Our line of thinking was that instead of depending solely on the government coming and helping us, we should also pitch our might towards helping our exporters and our city.”
He further pointed out how fortunate he was to have members who had also put in their heart and soul for the association’s growth over the years. “Without teamwork such stupendous achievements would not have been possible. We all dreamt big and had a broad outlook,” he observed.
No less a body than the United Nations Industrial Development Organization (UNIDO) has recognized the efforts of TEA. Dr. Sakthivel has been invited to several international forums to talk about the Tirupur cluster development model. In fact, UNIDO had brought in representatives from 70 under-developed countries to study the Tirupur model. Not only overseas, even within India, States like Andhra Pradesh, Maharashtra and Gujarat have tried to replicate the Tirupur cluster model.
Ambitious growth plans
There is no resting on the past laurels for Dr. Sakthivel and TEA. There are growth plans lined up for the immediate future. Going into the details of the plans, Dr. Sakthivel said: “When we had targeted achieving exports worth Rs. 1,000 crores in 1990 when our actual export was only Rs. 270 crores, everyone laughed at us. Then when we said one billion rupees. Again everyone laughed at us. But we have achieved the figure. I can confidently state that with the government taking steps to sign the FTA with the European Union and Canada in the near future, we will surely double exports to a level of Rs. 40,000 crores in another three years.”
Dr. Sakthivel, who was part of the Indian industry delegation that went to Canada recently with Prime Minister Narendra Modi, hopes that FTA would be signed soon, as early as September 2015, which would pave way for further speeding up of apparel exports.
A proven administrator known for his amazing levels of energy, Dr. Sakthivel pointed out that every time a challenge has been thrown, TEA has been able to successfully surmount obstacles and come out safe. Giving an example, he said: “If you remember a few years back the Tamil Nadu High Court had come down heavily on the industry regarding the effluent treatment issue. We suffered for about 8-9 months. The Chief Minister of the State, Ms. J. Jayalalithaa, intervened and announced a Rs. 200-crore interest-free loan for upgrading the effluent treatment infrastructure. Tirupur can boast of becoming the first textiles cluster in the country to have Zero Liquid Discharge Technology (ZLDT). Similarly, there were subsequently problems with the European as well as American economies. But we have successfully managed to sail through. Fortunately, the last three years have been relatively problem free for us. Things have been going on smoothly, at both the national and international levels. The spinning mills have enough capacity and farmers are producing enough cotton. Hence no problems on the raw materials front.”
Going forward Dr. Sakthivel stated that non-cotton based fabrics is an area that exporters in the region are keen on focusing. Going into details on the topic, he said: “We want to focus on non-cotton based fabrics such as viscose, polyester, polymate, etc. See we are right now predominantly catering only for the summer-spring market. Once we go in for other blended fabrics, we can cater to the autumn-winter market segment too. This will mean a steady inflow of business throughout the year.”
Even after his ceaseless pursuits, it is still not mission accomplished for this veteran. “In life, you never say that your mission or vision has ended. It ends only when you are retired. For me there is still a lot more that I need to achieve for the trade, my people and the city.”
One of the immediate challenges that Dr. Sakthivel wants to address is the issue of shortage of skilled workers. As the Chairman of the Apparel Made-Ups Home Furnishing Sector Skills Council, bridging the skill development gap is high on the agenda of this visionary.
The textile industry in the country has been grappling with the issue of shortage of skilled manpower. Dr. Sakthivel wants to address this issue on a priority basis for the betterment of the textile industry on a priority basis. “Skill development is something that is extremely important if this industry is to grow fast. Similarly, upgradation of skills is also high on our agenda. I don’t want an interlock tailor to remain one throughout his career. I want him to go to the next level and become a works manager or a production supervisor. We already have initiated steps towards addressing this issue,” said Dr. Sakthivel, going into details about an issue that is close to his heart.
With its path-breaking initiatives and unflinching commitment towards the betterment of the trade, people and the city of Tirupur, TEA, under the leadership of Dr. Sakthivel, has emerged a role model for every other industry association in the country. With its team of dynamic entrepreneurs, the Association continues to forge ahead, further consolidating Tirupur’s position as the preferred destination for knitwear globally.
Dr. A. Sakthivel – A visionary nonpareil
Dr. A. Sakthivel, President of the Tirupur Exporters’ Association (TEA), was born on November 12, 1947, in a simple, agricultural-oriented family. His father, C.S. Arumugam, was a highly disciplined and conscientious police officer who rose to the rank of Superintendent of Police and also won the President’s medal for meritorious service.
After securing his Diploma in Automobile Engineering, Dr. Sakthivel began his career with a short stint with TELCO. He soon realized that his inner call was to become an entrepreneur. This led to his setting up his highly successful Poppys Group. Thanks to his innovative approach and impeccable business ethics, Poppys soon managed to carve a niche for itself in the knitwear export industry.
Having gained a foothold in the industry, Dr. Sakthivel forayed into new territories like yarn spinning and tourism & hospitality.
Even as he became a successful entrepreneur there was a strong inner urge in him to serve for the betterment of the textile industry in Tirupur, its citizens and also for the city as a whole. Realising the need for an association to address the needs of the exporter community, he joined hands with some of the leading exporters of the time and set up the Tirupur Exporters Association (TEA) in 1990. As its President, he has played a key role in transforming Tirupur into one of the biggest export hubs in the world.
When TEA was established, Dr. Sakthivel had a dream of turning knitwear manufacturing and export into a billion-dollar industry. It was then considered impossible by many as the industry had only a meagre export output of about Rs. 15 crores in 1985. The figure touched the Rs. 1,000-crore mark in 1993. Thanks to the extraordinary business acumen and leadership qualities of Dr. Sakthivel, exports crossed Rs. 5,000 crores in 2003.
Not satisfied with achieving what was considered impossible, Dr. Sakthivel set his sights even higher and aimed to double exports in the next few years. As a result, exports crossed Rs. 11,000 crores in 2006-07 and grew further to reach an astonishing Rs. 18,000 crores in 2013-2014 and in the subsequent year 2014-15, it recorded Rs. 20,730 crores. Taking strength from the leadership of Dr. Sakthivel, the Association has set an even more ambitious target of Rs. 36,000 crores in 2016-2017, which, going by their track record, seems easily achievable.
Dr. Sakthivel also played an important role in setting up different facilities and institutions that cater to the needs of knitwear manufacturers and exporters such as the Tirupur Export Knitwear Industrial Complex (TEKIC), Inland Container Depot (ICD), TEA Public School, New Tirupur Development Corporation (NTADCL), India Knit Fair (IKF) Complex and the Netaji Apparel Park.
As an able administrator and business magnate, Dr. Sakthivel has held different positions in highly influential and prestigious organizations in the country – Chairman of the Apparel Export Promotion Council (AEPC), President of the Indian Chamber of Commerce and Industry (ICCI), Coimbatore, President of the Federation of Indian Export Organizations (FIEO), Director of IDBI and UCO Bank, Director of the Export Credit Guarantee Corporation of India (ECGC), Southern Regional Chairman of FIEO, and Executive Committee Member of the Federation of Indian Chambers of Commerce and Industry (FICCI).
In 2009, the Government conferred the Prestigious ‘Padma Shri’ Award in on him in recognition of his extraordinary contribution to the growth of apparel exports from India, particularly knitwear exports from Tirupur.
In 2011, Bharathiyar University conferred an honorary Degree of Doctor of Literature on him for the role he played in motivating and mentoring young entrepreneurs and his efforts to promote the growth of the export industry.
Dr. Sakthivel has actively dedicated himself to cater to the needs and address the issues of the exporter community at large. A staunch nationalist, he collected a sum of Rs. 50 lakhs and donated it to the Army Welfare Fund during the Kargil War. A philanthropist and a deeply religious man, he is also actively involved in various charitable and religious activities.
For a man who has decades of experience in the industry, Dr. Sakthivel is still as energetic and enthusiastic as he was when he started out as a young, ambitious entrepreneur, and continues to work with his peers in his relentless pursuit of taking the industry to newer heights in the years to come.