 "Auto hub, textile marketing centre needed in Madurai: CII")
The Confederation of Indian Industry (CII) has suggested the establishment of an automobile manufacturing hub and a common marketing centre for the development of the textile industry in Madurai, a major industrial hub in Tamil Nadu. The lobby group said this would give a fillip to micro, small and medium enterprises (MSMEs) and create jobs.
In a recent report on Madurai district, it has suggested action plans for the automobile, textile, tourism, infrastructure and other sectors. Madurai district had 3,681 MSMEs in 2012-13, with the prominent industries being fabricated metal products, computer and related activities, food products and beverages, and apparel.
Manufacturers of rubber and automobile components, dominated by SMEs, have a major presence in the district, but in the absence of a large customer, they cater to automobile manufacturers outside the district.
According to CII, there are more than 3,000 rubber and other component manufacturing units in the district, employing a total of over 10,000-12,000 people.
Their annual revenues are about Rs 40,000 crore, of which exports constitute about 20 per cent and domestic sales the rest. Growth has been 15 per cent year on year, and is expected to be 20-25 per cent a year in the next five years.
There is also abundant raw material available. Sundram Fasteners Limited, TVS Srichakra Ltd, Hitech Arai Pvt Ltd and Madras Suspensions Limited are some of the large companies in the district. Madurai, being a business centre and having a large auto component manufacturing industry, is best suited for large-scale investment in the automobile sector.
The CII report says that if the government procures land required for the auto hub and establishes a design and technological park, warehouses, logistics and other common infrastructure such as water, power, effluent and sewage treatment plants and communications, and offers tax concessions, companies will invest in manufacturing facilities.
Madurai district has over 9,200 weavers and produces 95 per cent woven and five per cent knitted garments. The district's textile industry, comprising over 3,000 units and employing more than 50,000 people, has an annual turnover of Rs 1,500-2,000 crore, and has witnessed steady growth of 10-20 per cent a year. About 20 per cent of the output is exported. Robust growth can be ensured through an effective marketing structure, the report said.
CII has recommended the establishment of a common marketing centre in the district, similar in format to those in Ahmedabad and Surat, to cater to various textile products, from spinning to handloom and readymade garments. CII envisions that the marketing centre will also act as a knowledge source bank with a technology incubator providing inputs on modern technology, and the latest trends in design and sourcing.
Establishment of a common marketing centre will help attract buyers from abroad, CII said. The absence of a marketing infrastructure is currently a barrier to promoting the district's textile products to other parts of the world.
In a recent report on Madurai district, it has suggested action plans for the automobile, textile, tourism, infrastructure and other sectors. Madurai district had 3,681 MSMEs in 2012-13, with the prominent industries being fabricated metal products, computer and related activities, food products and beverages, and apparel.
Manufacturers of rubber and automobile components, dominated by SMEs, have a major presence in the district, but in the absence of a large customer, they cater to automobile manufacturers outside the district.
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The establishment of an automobile manufacturing hub would help build a foundation for local sourcing of components and boost the district's economy, CII said. It will also enhance exports from the district, besides attracting investments by more large-scale companies in the district, it said.
According to CII, there are more than 3,000 rubber and other component manufacturing units in the district, employing a total of over 10,000-12,000 people.
Their annual revenues are about Rs 40,000 crore, of which exports constitute about 20 per cent and domestic sales the rest. Growth has been 15 per cent year on year, and is expected to be 20-25 per cent a year in the next five years.
There is also abundant raw material available. Sundram Fasteners Limited, TVS Srichakra Ltd, Hitech Arai Pvt Ltd and Madras Suspensions Limited are some of the large companies in the district. Madurai, being a business centre and having a large auto component manufacturing industry, is best suited for large-scale investment in the automobile sector.
The CII report says that if the government procures land required for the auto hub and establishes a design and technological park, warehouses, logistics and other common infrastructure such as water, power, effluent and sewage treatment plants and communications, and offers tax concessions, companies will invest in manufacturing facilities.
Madurai district has over 9,200 weavers and produces 95 per cent woven and five per cent knitted garments. The district's textile industry, comprising over 3,000 units and employing more than 50,000 people, has an annual turnover of Rs 1,500-2,000 crore, and has witnessed steady growth of 10-20 per cent a year. About 20 per cent of the output is exported. Robust growth can be ensured through an effective marketing structure, the report said.
CII has recommended the establishment of a common marketing centre in the district, similar in format to those in Ahmedabad and Surat, to cater to various textile products, from spinning to handloom and readymade garments. CII envisions that the marketing centre will also act as a knowledge source bank with a technology incubator providing inputs on modern technology, and the latest trends in design and sourcing.
Establishment of a common marketing centre will help attract buyers from abroad, CII said. The absence of a marketing infrastructure is currently a barrier to promoting the district's textile products to other parts of the world.