Netaji Apparel Park. Pic: TEA
Over time, these firms developed a unique network where production processes such as fabric fabrication, processing, and stitching were spread across various facilities, creating an ecosystem built on job work, contracting, and sourcing arrangements.
Cluster approach the success mantra
As the town’s textile industry flourished, one key factor that contributed to its success was the emergence of a cluster approach. Interacting with Fibre2Fashion, N Thirukkumaran, general secretary of the Tiruppur Exporters Association (TEA), elaborates: “Our success is basically because of the cluster approach. There are industries that complement each other. For example, my facility is semi-vertically integrated. I buy yarn and then do the rest myself. Likewise, others depend on spinners, dyers, printing units, and embroidery units. So, there are stand-alone printing units, stand-alone dyeing units, and stand-alone knitting units, who do job works, complementing each other. That is why the ecosystem has evolved in that way. Competition is coupled with cooperation, and this has greatly contributed to our growth.”
This model of decentralised but interconnected production enabled Tiruppur’s textile sector to grow rapidly. By the early 1990s, the region had gained significant prominence in the global textile market, particularly in the export of knitwear. At the core of its success lies the collaboration between the small and medium-sized enterprises (SMEs), where firms that may compete in the marketplace still work in tandem within the cluster to meet the demands of the industry.
A knitwear hub as it is, the growth of Tiruppur’s textile industry has had a profound impact on the local economy and employment. As of 2024, the sector directly employs over six lakh workers, with 65 per cent of them being semi-literate women who hail from the rural areas.
Additionally, approximately two lakh workers are employed indirectly, contributing to the region’s socioeconomic development. The town’s textile cluster has become a lifeline for many families, offering employment opportunities in an area where agriculture had previously been the primary source of livelihood.
TEA’s role in shaping Tiruppur
TEA, established in 1990, has been at the forefront of promoting and supporting the region’s textile industry. As of 2024, TEA boasts 1,316 knitwear-exporting units as its members. Notably, 90 per cent of these exporting units are micro, small, and medium enterprises (MSMEs), and 100 of these exporting units contribute to 50 per cent of Tiruppur’s knitwear exports. This highlights the vital role MSMEs play in the region’s economic prosperity.
The story of Tiruppur’s rise is, however, not one of uninterrupted growth. The global textile industry has faced numerous challenges, from fluctuating demand and trade policies to environmental concerns. Tiruppur’s ability to adapt to these challenges has allowed it to emerge stronger. The cluster’s resilience has been demonstrated in its ability to align with evolving global trade policies while simultaneously adopting sustainable practices that resonate with the international buyers and consumers.
Sustainability & circularity the key
Tiruppur’s emphasis on sustainability has positioned it as a leader in eco-friendly manufacturing. In particular, the region’s commitment to reducing its environmental footprint is evident in its implementation of a zero-liquid discharge (ZLD) system, which ensures that no untreated effluent is discharged into the environment. This pioneering initiative has made Tiruppur the only textile cluster in the world to achieve zero liquid discharge status.
“We stand as the world’s sole environmentally and socially governed textile cluster,” asserts K M Subramanian, president of TEA, adding, “We are the only cluster globally to have achieved zero liquid discharge.”
Central to this success is the installation of 18 Common Effluent Treatment Plants (CETPs) and 60 Individual Effluent Treatment Plants (IETPs) that collectively treat 130 million litres of effluent daily, achieving a remarkable 96 per cent water recycling and reuse rate.
Tiruppur’s commitment to sustainability extends beyond just waste management. In the past 12 to 15 years, the region has made significant strides in improving its water conservation practices. M Anand, chairman of the Branding Sustainability & Business Promotion Subcommittee of TEA, shared, “About 12 to 15 years ago, excessive water usage caused the groundwater level to drop drastically. Now, it has been restored to 100 feet.”
The TEA has also undertaken extensive tree planting and lake rejuvenation initiatives. Over the past nine years, TEA has planted approximately 2.2 million trees and restored 13 to 14 lakes, including Nanjulai Lake, which has been recognised as Tamil Nadu’s 17th bird sanctuary.
These efforts contribute to carbon sequestration, absorbing over 7,000 metric tons of carbon dioxide annually and accumulating 4,000 metric tons of biomass.
Moreover, Tiruppur has significantly increased its reliance on renewable energy sources. The region now has a green energy capacity of 1,950 MW, including 1,600 MW from wind power and 350 MW from solar power.
As TEA president Subramanian explains, “As a cluster, we generate 1,950 megawatts of renewable energy, while our consumption stands at just 350 megawatts.” The surplus 1,600 MW is supplied to the Tamil Nadu grid, bolstering the state’s overall renewable energy capacity.
Circularity plays a key role in Tiruppur’s environmental initiatives. Textile waste, including fabric cuttings and leftover materials, is recycled into yarn, which is then used to produce new fabrics and garments. Sulochana Cotton Spinning Mills Pvt Ltd, one of the region’s major exporters, recycles approximately 5.5 million PET bottles daily, turning them into recycled polyester staple fibre. This process produces 100 tons of fibre in 50 dope-dyed colour variants without using any water for dyeing.
The TEA has been instrumental in promoting circularity in the textile sector even as it partnered with Reverse Resources, a company that helps textile manufacturers optimise waste collection and recycling processes. The initiative aims to achieve 100 per cent circularity and traceability of textile waste, ensuring that waste generated by the participating companies is exclusively sold for recycling purposes. Over time, TEA hopes to onboard 400 to 500 companies into this programme, making Tiruppur’s textile industry fully circular.
Eyes on future, Tiruppur betting big on MMF
In addition to its focus on sustainability, Tiruppur has turned its attention to diversify offerings by expanding capabilities in manmade fibres (MMF). Thirukkumaran acknowledges the growing importance of MMF in the global textile market, noting, “currently, around 10 per cent of Tiruppur’s turnover is from MMF, and our aim is to increase that to 25 per cent.”
Tiruppur is keen on capturing a larger share of the global MMF market, especially in the performance fabrics and sportswear segments.
“We are focusing on bringing the business of the major players including Adidas, Reebok, and Nike to Tiruppur,” says Thirukkumaran, reflecting the cluster’s aspirations to become a key player in the global sportswear market.
Tiruppur’s textile industry is also in talks with Surat, a city in Gujarat, known for its expertise in MMF production, to explore potential collaborations in MMF-based garment manufacturing.
Adds Dr. A Sakthivel, honorary chairman of TEA, “About four years ago, during my tenure as chairman of the Apparel Export Promotion Council (AEPC), I initiated efforts to promote MMF. We even developed a comprehensive book detailing the HS codes, garment designs, and fabric sourcing information, which we submitted to the government.”
Today, TEA has a dedicated sub-committee on MMF and a seasoned professional, working as a consultant, to achieve the MMF goals. Nevertheless, the region faces some challenges in sourcing high-quality MMF fabrics. Currently, India relies heavily on imports for MMF fabric production, and the TEA is pushing for joint ventures between Indian companies and international players from Taiwan and Korea, which are known for their advanced MMF fabric production capabilities.
The global MMF market worth approximately $500 billion, the TEA aims to increase the share of MMF in Tiruppur’s textile production significantly.
FTAs to boost the growth trajectory
With a turnover of approximately ₹35,000 crore in the previous year, Tiruppur’s growth prospects look promising, and the TEA officials are optimistic that the region will achieve a turnover of ₹40,000 crore in the current year.
And one key factor that could significantly influence Tiruppur’s growth trajectory is the potential for Free Trade Agreements (FTAs) with the United Kingdom and the European Union (EU).
Dr. Sakthivel underscores the importance of these agreements, noting, “Given the current circumstances in Bangladesh, an FTA with the UK would be particularly beneficial for us. Additionally, there is ongoing discussion about potential negotiations with the EU for an FTA. If both agreements come to fruition, Tiruppur’s growth rate may not just remain at 15 per cent but could possibly increase to 30 per cent to 40 per cent.”
However, manpower availability is a concern area in this growth journey.
“The biggest issue is the shortage of manpower. Even if 60,000 workers were to arrive in Tiruppur tomorrow, we could absorb them immediately,” says Dr. Sakthivel, adding, “Bringing workers from other states requires us to also provide them with accommodation, which is a major investment.”
The construction of hostels for workers is expensive, and Sakthivel urges the government to provide grants to facilitate the creation of worker accommodations.
However, given adequate backing from the stakeholders concerned along with policy support, the TEA and knitwear manufacturers are bullish of writing a new chapter in Tiruppur’s growth journey, in the days to come.
Fibre2Fashion News Desk (DR)