Delve into the remarkable narrative of Tirupur Exporters Association, led by President Mr. K.M. Subramanian, as they steer the textile industry towards sustainable growth and global prominence. At the heart of this tale lies Tirupur’s unrivaled expertise in knitwear manufacturing. From pioneering sustainable practices to championing circular business models, Tirupur stands tall as the epitome of success in the textile domain. This article offers an illuminating glimpse into how Tirupur’s knitwear industry not only survives but thrives, setting a shining example for the textile world to follow.
In the financial year 2022-23, India’s total Readymade Garments exports amounted to Rs. 1,29,971 Crores, reflecting a positive growth of 8.78% compared to the previous year. In Dollar terms, Readymade Garment exports in 2022-23 increased to US $ 16.19 Billion against US $ 16.02 Billion recorded in 2021-22, marking a positive growth of 1.06%. The knitwear exports from Tirupur in 2022-23 also witnessed growth, amounting to Rs. 34,350 Crores against Rs. 33,525 Crores recorded in 2021-22. The share of Tirupur to All India knitwear exports in 2021-22 was 55.60%.
Efforts have been underway to promote the manufacturing of MMF products recognizing the global demand for product diversification, with the current buying pattern for synthetic and cotton garments standing at a ratio of 70% to 30%. Plans are in place to conduct awareness programs and assist members in enhancing their production share of MMF products.
Tirupur Cluster’s Sustainability:
With Environment and Sustainability Governance (ESG) being a prominent topic of discussion, the Association has been engaging with experts to comprehend the right procedures. The focus is on encouraging members to follow and adopt sustainable practices within their units, acknowledging the potential of a circular business model and the need to be part of the global transformation towards sustainability.
Leading global fashion brands are increasingly committing to net zero targets, indicating a rising trend towards sustainability in the international fashion arena. The adoption of circularity is crucial, prompting major global retailers to set targets for reducing their carbon footprints. The ‘Reuse, Recycle, and Reduce’ concept is propelling the industry towards a sustainable future.
In a pioneering move, Tirupur has already implemented Zero Liquid Discharge in its processing units, recycling 120 MLD, a first of its kind globally. Furthermore, the Tirupur industry has significantly invested in wind and solar power (2000 Mega Watt), surpassing requirements by eight times, and has been actively involved in afforestation and rainwater harvesting. However, to achieve a circular economy, support from the Government in the form of sustainable finance is essential, especially considering that 90% of exporting units are MSMEs.
The Association proudly announces its membership in Textile Exchange, a platform that promises to provide valuable insights into global trends and requirements related to sustainable garment production. This membership is anticipated to enhance Tirupur’s potential by enabling more US and EU brands to initiate business partnerships, ultimately promoting the growth of exports.
In the financial year 2022-23, the top 10 knitwear garment items constituted a significant share of 60.07% of total knitwear exports from Tirupur. Notably, items such as T-Shirts made of Cotton, Babies Garments made of Cotton, and T-Shirts made of Other Fibres were among the top exported items from Tirupur, with values amounting to Rs. 8,396 Crores, Rs. 3,790 Crores, and Rs. 2,493 Crores, respectively. These items from Tirupur constitute a share of 60% in All India Exports.
Free Trade Agreements
India and the European Union have engaged in the sixth round of negotiations, exchanging the first market access offers. The EU has advocated for a deep and comprehensive Free Trade Agreement (FTA) covering various areas, including sustainability, to ensure that trade does not lead to environmental degradation or reduction of labor standards. Hopes are high for addressing the issues and finalizing the agreement by the coming year.
In a recent development, negotiations for a Comprehensive Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA). The Hon’ble Union Minister of Commerce and Industry and Textiles, while addressing the audience in Coimbatore on 31st August 2023, conveyed that the Agreement would be concluded at the earliest.
PLI & PM Mitra
The Central Government has given its approval for the Production-Linked Incentive (PLI) Scheme for Textiles products, focusing on MMF Apparel, MMF Fabrics, and Technical Textile Products. This initiative aims to enhance India’s manufacturing capabilities and exports, with an approved financial outlay of Rs 10,683 Crore over a five-year period. The scheme consists of two parts with specific minimum investment and turnover requirements for incentives. The Ministry of Textiles has approved 64 applications, and three members of the Association have received approval for their investment of Rs.100 Cr, demonstrating their commitment to set up units. Furthermore, the final date for application submission has been extended to 31st October 2023.
The Association has advocated for a new version of the PLI Scheme (PLI 2.0) focusing on the textiles sector, particularly on small and medium enterprises and the manufacturing of cotton garments. The proposal suggests fixing a Threshold limit for investment and aligning turnover requirements accordingly. It is encouraging to note that the textile ministry has already submitted a proposal to the cabinet, fixing the Threshold limit at Rs. 25 Crore, and the industry awaits the announcement of the PLI 2.0 Scheme.
India’s first PM MITRA Park was launched in Viruthunagar district, Tamil Nadu, on 22nd March 2023, out of the seven Mega Textile Parks announced. The park, covering 1100 acres in Virudhunagar district, aims to create a conducive ecosystem to attract MSMEs in Tirupur. The Association had made several suggestions to enhance the park’s appeal, including plug-and-play facilities, incentives for units in the PM MITRA Park through PLI-2 scheme, solar power integration, and a Common Effluent Treatment Plant for the processing units, among others. The hope is that these suggestions will be favorably considered, attracting investment and generating more employment, especially for women workers.
TIRUPUR EXPORTERS ASSOCIATION – AWARDEE LIST
