Textile units in Tamil Nadu are unlikely to make any major investment in the near future, said S.K. Sundararaman, the newly-elected chairman of the Southern India Mills’ Association.
With the opening of the PM MITRA park and the mini parks and the Salem Textile Park proposed, the infrastructure requirements of the textile industry in the State are in place. “The gains made by the textile industry in 2021 were completely wiped off in the last 12 months. The repayment for Emergency Credit Line Guarantee Scheme starts in January of 2024 and it is very difficult for investments to come in now,” he said.
At the national-level, the textile industry representatives are talking to the Indian Banks Association seeking restructuring of these loans. At present, the textile and apparel industry in Tamil Nadu is looking at stabilising operations and not expansion.
“Tamil Nadu has become a developed economy and the focus now is on how to future proof the industry so that it remains competitive. We are operating at maximum efficiency. The problem is with input costs. Hence, structural issues related to power, labour, etc should be addressed with support from the State government,” he added.
The textile industry in the State is largely cotton-based and has more of home textiles and apparel units that see large global consumption. Hence, investing in technical textiles by these units can be a “diversification strategy and not a replacement strategy,” Mr. Sundararaman said.
