GROWTH PERFORMANCE OF TEXTILE INDUSTRIES IN KARUR DISTRICT, TAMIL NADU

Abstract

The Indian textile industry is one of the oldest and emerging industries in the world and it occupies a unique place in the nation. The major reason for these, availability of raw materials such as cotton, silk, wool, jute and it made the country with skilled workforce of a sourcing hub. It contributes around 14 % to Industrial production, 4 % to the Gross Domestic Product (GDP) and 17 % to the country's export earnings, 18 % of employment in the industrial sector and 27 % of its total foreign exchange through textile exports. The textile industry is the subsequent (second) largest employment provider in India. It provides direct employment to 45 million people, and the industry continues to provide employment opportunities for millions of skilled and unskilled people. It plays a very important role in the Tamil Nadu economy by providing direct employment nearly one million people, GDP and foreign exchange earnings through home textile exports such as table linens, kitchen linens, bed linens toilet linens, and wall hangings. It contributes to 14 per cent of the manufacturing sector in the state. The Coimbatore, Erode, Karur, Gobichettipalayam, Tirupur and Perundurai in Tamil Nadu, are the largest garment exporters in the state. The present research work is to study the growth, development and performance of textile industries in Karur District 2007-08 to 2015-2016. The study has completed based on secondary data. There has been a steady growth of textile industry in Karur District during the study period due to various incentives granted by the state and central governments. There is a positive correlation between amount of investment and employment generation of textile industry in the Karur District. The amount of investment per unit, investment per worker and worker per unit has increased during the study period due to rapid development of textile and cotton industries in the District.

Full text

https://iaeme.com/Home/journal/IJM 606 editor@iaeme.com
International Journal of Management (IJM)
Volume 10, Issue 4, July-August 2019, pp.606-612, Article ID: IJM_10_04_061
Available online at https://iaeme.com/Home/issue/IJM?Volume=10&Issue=4
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: https://doi.org/10.17605/OSF.IO/NGJU2
© IAEME Publication Scopus Indexed
GROWTH PERFORMANCE OF TEXTILE
INDUSTRIES IN KARUR DISTRICT, TAMIL
NADU
Dr. K. Vetrivel
Assistant Professor, Department of Economics, Bharathidasan University,
Tiruchirappalli – 620 024. Tamil Nadu, India
ABSTRACT
The Indian textile industry is one of the oldest and emerging industries in the world
and it occupies a unique place in the nation. The major reason for these, availability of
raw materials such as cotton, silk, wool, jute and it made the country with skilled
workforce of a sourcing hub. It contributes around 14 % to Industrial production, 4 %
to the Gross Domestic Product (GDP) and 17 % to the country’s export earnings, 18 %
of employment in the industrial sector and 27 % of its total foreign exchange through
textile exports. The textile industry is the subsequent (second) largest employment
provider in India. It provides direct employment to 45 million people, and the industry
continues to provide employment opportunities for millions of skilled and unskilled
people. It plays a very important role in the Tamil Nadu economy by providing direct
employment nearly one million people, GDP and foreign exchange earnings through
home textile exports such as table linens, kitchen linens, bed linens toilet linens, and
wall hangings. It contributes to 14 per cent of the manufacturing sector in the state. The
Coimbatore, Erode, Karur, Gobichettipalayam, Tirupur and Perundurai in Tamil Nadu,
are the largest garment exporters in the state. The present research work is to study the
growth, development and performance of textile industries in Karur District 2007-08 to
2015-2016. The study has completed based on secondary data. There has been a steady
growth of textile industry in Karur District during the study period due to various
incentives granted by the state and central governments. There is a positive correlation
between amount of investment and employment generation of textile industry in the
Karur District. The amount of investment per unit, investment per worker and worker
per unit has increased during the study period due to rapid development of textile and
cotton industries in the District.
Keywords: Performance, Textile industry, Karur, Textile hub, Tamil Nadu.
Cite this Article: K. Vetrivel, Growth Performance of Textile Industries in Karur
District, Tamil Nadu, International Journal of Management (IJM), 10(4), 2019, pp. 606-
612.
https://iaeme.com/Home/issue/IJM?Volume=10&Issue=4

Growth Performance of Textile Industries In Karur District, Tamil Nadu
https://iaeme.com/Home/journal/IJM 607 editor@iaeme.com
INTRODUCTION
The textile industry is an important and largest sector in the Indian economy in terms of output,
foreign exchange earnings and generations of employment. Its magnitude for social and
economic cohesion is increased by the fact that it is dominated by a large number of small and
medium-sized enterprises, which are often concentrated in particular regions, thus contributing
greatly to their wealth and cultural heritage (Werner Stengg, 2001). The features of the
industry (comparatively low investment; and utilise the local and low skilled labour), also mean
that the industry is relatively footloose and able to adjust to changing market conditions quickly
(Nordas, 2004). The Indian textile industry contributes about 10 per cent to the manufacturing
production and to 13 per cent to the country’s export earnings (Annual Report of Ministry of
Textiles, 2017). India has also been a major player in the world textile markets. It is the third
major producer of cotton, second largest producer of silk, the biggest producer of jute and the
fifth largest producer of man-made fibres and yarn (Noopur Tandon and E Eswara Reddy,
2013).
Indian Textile industry has been observed as a remarkable structural change, continuously
reinventing and reviving it to meet the needs of the global buyers. Indian enterprises have
started increasing their standards and also forcefully pursuing their human resource strategies
intended at image building as well as overall development. India is one of the world’s best
producers of yarns and fabrics, and the export quality of its products is constantly increasing.
Indian Textile Industry is a self-sufficient and independent industry and has immense
diversification and resourcefulness. It can be generally classified into two categories, the
organized and unorganized sectors. The organized sector of the textile industry stands for the
mills such as spinning mill or composite mill. The unorganised sector is comprised of the three
major sections viz., powerloom, handloom and hosiery.
The history of Indian textiles dates back to the use of caustic dyes and printing blocks
roughly 3,000 BC. The range of fibres found in India, involved weaving on its State-of-art
labour-intensive looms and its natural dyes attracted buyers from all over the globe for
centuries. The colonial India and its industrial policies damaged the pioneering eco-system and
left it exactly impoverished. Independent India saw the structure up of textile capabilities,
change of its product base, and its development, once again, as an essential universal player
(Pankaj Chandra, 2005). Now, the Indian textile enterprises have a great attendance in the
economic life of the country. After the agriculture, it provides employment to huge number
(employing 45 million people) of people in India (Asiya Chaudhary & et.al., 2016).
Moreover, 60 million people are engaged in allied activities. It contributes around four per cent
of GDP, nine per cent of excise duty collections, 18 per cent of employment in industrial sector,
and has 16 per cent share in the country’s export (India Brand Equity Foundation, 2016). It
contributes about 25 per cent of a share in the global trade of cotton yarn. India is the largest
exporter of yarn in the international market and has a share of 25 per cent in world cotton yarn
export market. India contributes for 12 per cent of the world’s production of textile fibres and
yarn. India has around 6 per cent of global rotor capacity. The nation has the highest loom
capacity, comprising handlooms, and has a share of 61 per cent in the world loomage.
Growth of Textile Industry in India
The Indian textile industry is one of the oldest and emerging industries in the world and it
occupies a unique place in the nation. The major reason for these, availability of raw materials
such as cotton, silk, wool, jute and it made the country with skilled workforce of a sourcing
hub. It also plays a vital role in Indian economy and the industry mostly depends upon the
textile manufacturing and export.

Dr. K. Vetrivel
https://iaeme.com/Home/journal/IJM 608 editor@iaeme.com
It contributes around 14 % to Industrial production, 4 % to the Gross Domestic Product (GDP)
and 17 % to the country’s export earnings, 18 % of employment in the industrial sector and 27
% of its total foreign exchange through textile exports. The textile industry is the subsequent
(second) largest employment provider in India. It provides direct employment to 45 million
people, and the industry continues to provide employment opportunities for millions of skilled
and unskilled people (IBEF, 2019).
Textile Industry in Tamil Nadu
The textile industry plays a vital role in the Tamil Nadu economy by providing direct
employment nearly one million people, GDP and foreign exchange earnings through home
textile exports such as table linens, kitchen linens, bed linens toilet linens, and wall hangings.
It contributes to 14per cent of the manufacturing sector in the state. The Coimbatore, Erode,
Karur, Gobichettipalayam, Tirupur and Perundurai in Tamil Nadu, are the largest garment
exporters in state (Tamil Nadu State Industrial Profile 2014-15).
The textile industries in Tamil Nadu occupy a unique place in terms of its impact to the total
industrial production, employment, export, and foreign exchange earnings. The State has more
than 959 cottons man-made fiber (MMF) textile mills (919 spinning Small Scale Industry (SSI)
mills and 40 composite mills in the non-Small Scale Industrial sector) In non-SSI sector, there
were 18 exclusive weaving mills and four 100 per cent of export oriented mills. In the Small
Scale Industrial sector, the number of spinning mills is more than 1000. The organisation of
textile industries in the State continued to be spinning-oriented.
Key Highlights
• Tamil Nadu state contributes to 1/3rdof the Textile Industry in India making it the textile
valley of India.
• Tamil Nadu is called as “Yarn Bowl” of India since it produces 40% of the total yarn in India.
• Tamil Nadu states occupies ranks: First Place in production of Cotton Yarn, First position
in export of Cotton Yarn and 2ndin production of Blended Yarn.
• Tirupur City is called the ‘Knitting City’; Coimbatore is known as the ‘Manchester of South
India.
• Tamil Nadu has the huge number of textile sectors in India.
• Out of 13,000 garment units in India, 6,500 units are located in Tamil Nadu state.
REVIEW OF LITERATURE
Vetrivel K and S. Iyyampillai (2009) indicated that the small-scale textile industries are very
popular in Coimbatore, Tiruppur, Karur, Madurai, Rajapalayam and Chennai. In particularly,
Karur district is famous for dyeing units. Small scale industrial sector occupies a power full
position in Tamil Nadu. Vetrivel K (2008) found the total number of small scale Hosiery and
Garments units registered have increased from 313 in 1989-90 to 3129 in 1998-99 which is a
10 times increase during the study period, in Tiruchirappalli District. Krishna Moorthy N
(2005) studied the industrial relations in textile industry, Tamil Nadu. He pointed out the textile
industry in the state continues to be dominated by spinning sector. Sushil Kharna (1989)
focused on the industrial growth of textile industry from the year 1950s to 1980s. As a result of
the second five year plan, bulk quantities of new generation modern machines have been
imported for rapid and quality production of textiles. Polpi & Rao (2009) discussed the Short
and long term financial institution provides credit to the Indian textile SME unit for rapid
development of industry and generation of employment.

Growth Performance of Textile Industries In Karur District, Tamil Nadu
https://iaeme.com/Home/journal/IJM 609 editor@iaeme.com
The present research work is to study the growth, development and performance of textile
industries in Karur District 2007-08 to 2015-2016. To arrive this, the distribution of industries,
success or failure, growth of industries, employment generation, investment and output of
textile industries are to be collected and analysed. The textile industry performance in Karur
District is flourished a lot. So, the researcher is interested to take up the research work on
performance of textile industry in Karur District of Tamil Nadu.
Objective
• To analyse the performance of the textile industry in Karur District, Tamil Nadu.
METHODOLOGY
The study has completed based on secondary data collected from District Industries Centre,
Inspector of Factory, District Statistical Office and published materials like Journals, News
Papers, Periodicals, Books, etc. This study comprises of the performance of textile industry at
Karur District. The secondary data have been collected for this research work is limited to eight
years during 2008-09 to 2015-16.
Performance of Textile Industry in Karur District
Karur district is an economically and industrially developing district of Tamil Nadu State. Karur
is a textiles hub of Tamil Nadu (Vetrivel K, 2019). The number of industries has increased over
the years and given more employment opportunities to compare with the other industry. For
this, people migrate from other Districts to Karur District. Instead of people from Karur going
out of District earlier, now people from other Districts and other states are migrating to Karur
for employment purpose.
Growth of Textile Industry
There has been a steady growth of textile industry in Karur District during the study period.
The number of textile industrial units rose from 2,647 (registered under District Industries
center Karur) at the end of the year 2006-07 to 4,859 at the end of March 2016, indicating about
two fold increased during the study period. This rapid growth in textile industry has been the
result of various incentives granted by the state and central governments.
Employment Generation of Textile Industry
The textile industry said to create more employment per unit of capital invested. Growth of
Textile industry has been considerably increased and also raised the employment potential in
Karur District during the study period. Textile industry provided employment to 34,233 persons
in the Karur District during 2008-09 to 2015-16. The number of persons employed has been
increased from 5,908 in 2008-09 to 20,627 in the year 2012-13. At the end of the March 2016
it went up to 34,233, indicating about six fold increased during study period.
Investment of Textile Industry in Karur District
The total amount invested by textile industry in Karur District during the period of study was
Rs.113977.33 lakhs. The investment has risen from Rs. 10,352.37 lakhs in 2008-09 to
Rs.44,398.10 lakhs at current prices in 2012-13 and further increased as Rs.113,977.33 lakhs at
the end of March 2016, indicating more than eleven fold increase during the study period. Now
most of the textile industry investment has increased significantly due to the modernization
process.

Dr. K. Vetrivel
https://iaeme.com/Home/journal/IJM 610 editor@iaeme.com
It is observed from the Table - 1that there is a positive correlation between amount of
investment and employment generation of textile industry in the Karur District. The correlation
coefficient is 0.98. This implies that investment and employment are moving in the same
direction. Hence, it is concluded that there is proportional increase in the employment
generation with the amount invested on textile industry in the District.
Emerging Trend of Textile Industry
The amount of investment per unit, investment per worker and worker per unit has increased
during the study period due to rapid development of textile and cotton industries in the District.
Worker per unit increased threefold, whereas investment per worker increased three fold and
investment per unit increased more than six fold, due to modernization and technological up-
gradation of textile industries in the district. Thus, many fold development and progress is
reported. It is lucidly explained in Table - 2.
CONCLUSION
To sum up, textile industry in Karur district had a fast development, in terms of investment,
employment generation and number of units. Subsequently, its impact reflecting in the mass
production of the textile and foreign exchange earnings by exports of textiles. Moreover, it
attracts women and skilled labourers from all over India. That’s why, the people’s standard of
living is improved and consequently there is a rapid development in district economy also.
Thus, textile industries of Karur district remain as a model for textile cities of the nation.
Table - 1: Performance of Textile industries in Karur District
Sl.
No
Year
No. of
Units
Employment
(in Numbers)
Investment
(Rs. in
Lakhs)
1
Upto
2006-07
2647
-
-
2
2007-08
2718
-
-
3
2008-09
2950
5908
10352.37
4
2009-10
3172
9609
16782.18
5
2010-11
3406
15417
26201.67
6
2011-12
3635
17882
36885.1
7
2012-13
3890
20627
44398.1
8
2013-14
4133
25056
72157.24
9
2014-15
4534
30000
97608.87
10
2015-16
4859
34233
113977.33
Source: District Industries Centre, Karur.

Growth Performance of Textile Industries In Karur District, Tamil Nadu
https://iaeme.com/Home/journal/IJM 611 editor@iaeme.com
Table -2: Emerging Trend of Textile industry in Karur District
Sl.
No
Year
Worker
Per Unit
Investment
Per worker
Investment
Per Unit
1
Upto
2006-07
-
-
-
2
2007-08
-
-
-
3
2008-09
2.00
1.75
3.51
4
2009-10
3.03
1.75
5.29
5
2010-11
4.53
1.70
7.69
6
2011-12
4.92
2.06
10.15
7
2012-13
5.30
2.15
11.41
8
2013-14
6.06
2.88
17.46
9
2014-15
6.62
3.25
21.53
10
2015-16
7.05
3.33
23.46
Source: Compiled data from Table - 1.
REFERENCES
[1] Annual Report Ministry of Textiles (2017-2018), http://texmin.nic.in/documents/annual-report
[2] Annual report of Textile industry (2017-18) https://msme.gov.in/sites/default/files/MSME-AR-
2017-18-Eng.pdf
[3] Brief Industrial Profile Karur District (2015-16), MSME. http://dcmsme.gov.in/dips/2016-
17/DIP.KARUR.2015.16.pdf
[4] Chaudhary, Asiya., Pervej, Mohammed., & Anjum, Neshat. (2016), “Make in India and
Productivity of Indian Textiles Industry: A Case Study Bombay Dyeing & Mfg. Co. Ltd.
IRACST”, International Journal of Commerce, Business and Management (IJCBM),Vol. 5,
No.1.
[5] Chellasamy P. (2007) https://www.fibre2fashion.com/industry-article/2270/an-analysis-of-
growth-and-development-of-textile-industry-in-india
[6] District Industries centre, Karur District.
[7] Giriraj Singh (2018), MSME Insider https://msme.gov.in/sites/default/files/MSMEINSIDER-
SEPTEMBERISSUE.pdf
[8] http://www.indcom.tn.gov.in/pdf/msme_e_cc_2018_19.pdf
[9] http://www.investingintamilnadu.com/tamilnadu/doc/policy/2018-19/MSME-policy-
note%202018-19.pdf
[10] https://www.investingintamilnadu.com/focus-sectors/textiles-and-apparels/
[11] India Brand Equity Foundation (2016 & 2019), https://www.ibef.org/annual-report.aspx
[12] Krishna Moorthy N (2005), “Industrial Relations Scenario in Textile Industry in Tamil Nadu”,
Indian Journal of Industrial Relations, Vol. 40, No. 4, pp.470-481.
[13] Marimuthu K.N (2012), “Financial Performance of Textile Industry: A Study on Listed
Companies of Tamil Nadu”, International Journal of Research in Management, Economics and
Commerce, Vol. 2, No. 11, pp.365-377.

Dr. K. Vetrivel
https://iaeme.com/Home/journal/IJM 612 editor@iaeme.com
[14] Noopur Tandon and E.Eswara Reddy (2013), "A Study On Emerging Trends In Textile Industry
In India", AMET International Journal of Management,
http://www.ametjournal.com/attachment/Ametjournal5/10%20Noopur%20Sarin19-8-13.pdf
[15] Nordas, H. (2004) The Global Textile and Clothing Industry post the Agreement on Textiles
and Clothing, WTO Discussion Paper No. 5,
http://www.wto.org/english/res_e/booksp_e/discussion_papers5_e.pdf
[16] Pankaj Chandra (2005), The Textile and Apparel Industry in India, "Indian Institute of
Management,https://scholar.google.com/citations?user=hmVzJSoAAAAJ&hl=en#d=gs_md_c
itad&u=%2Fcitations%3Fview_op%3Dview_citation%26hl%3Den%26user%3DhmVzJSoAA
AAJ%26citation_for_view%3DhmVzJSoAAAAJ%3AWF5omc3nYNoC%26tzom%3D-330
[17] Polpi and D. N. Rao (2009), “Prospects and challenges for SMEs in Textile sector in the post
WTO Era an empirical study in the Indian context”, Social Science Research Network, 2009.
[18] Sushil Kharna (1989), “Technical change and competitiveness in Indian textile industry”.
Economic and Political Weekly, Vol. 24, No. 34, pp.M103-M111, 1989.
[19] Tamil Nadu State Profile (2014-2015), Ministry of Micro, Small and Medium Enterprises
(MSME), Government of India. pp.54-55.
[20] Vetrivel K and S. Iyyampillai (2009), “Problems and Prospects of SSIs in Tamil Nadu”,
Southern Economist, Vol. 48, No. 14, pp.31-33.
[21] Vetrivel Krishinan, R. Senthil Kumar & Radhika Durairaj (2019), “Employment Generation of
MSMEs in Karur District, Tamil Nadu, Summaries of Conference Papers, 61stLabour
Economics Conference, Patiala, pp.252-253.
[22] Werner Stengg (2001), "the textile and clothing industry in the EU",
https://www.slideshare.net/utkanuluay/werner-stengg-report-2001