Cluster Ecosystem

The main players of the knitwear and apparel cluster of Tirupur are the exporter-manufacturers and domestic market focused manufacturers of knitwear products. These manufacturers are supported by subcontractors providing services like dyeing, bleaching, stitching, embroidery, etc. The support and ancillary player that is Business Development Service Provider in the cluster include machinery manufacturers, machinery import agents, accessory suppliers, yarn dealers and merchant buyers etc. The technical support institutions include Government training institutes, training institutes run in collaboration with Association and private institutes for textile designing and management institutes. The financial support institutions include developmental and commercial banks that have a direct stake in the growth of the cluster. Local industry associations of knitwear manufacturers, exporters, dyers, knitters and printers that also form a part of the cluster and play a major role in development of industry.
tirupurbds.com Training Institutes
• NIFT-TEA Knitwear Fashion Institute is the premier technical institute in the cluster, which leads for knowledge upgradation in the cluster, by providing regular diploma, certificate, graduate as well as postgraduate level courses for knitting, fashion designing, merchandising, apparel manufacturing and management. The Institute was promoted by Tirupur Exporters’ Association (TEA) to improve the human resource skills of the cluster with the technical support from National Institute of Fashion Technology (NIFT). The Institute also offers part time training programmes for the employees who are working in the industry and has also created a separate division to have an interface between the industry and the Institute. Programmes are conducted in the evening on a regular basis and have an extension centre in the town for the convenience of the participants. The Institute has good infrastructure in terms of ICT. It imparts the know-how of software in fashion designing, and conducts training for usage of CAD, in pattern making.

• Premier Institute of Apparel Management (PIAM) was started two years back due to the increase in demand for garment education in the cluster, by some of the faculty members of NIFT-TEA Knitwear Fashion Institute. At present, apart from conducting regular courses the institute specializes in conducting customized programmes for the industry at the manufacturing units based on the request of the exporters.

• SIHMA Institute of Fashion and Apparel Training was established by the South India Hosiery Manufacturers’ Association (SIHMA) in association with a BDS, under the initiative of UNIDO, during their Cluster Development Programme in the cluster during the year 2001. The objective of initiating this Institute was to provide technical inputs to upgrade the skills of the employees who were working in the industry and for those new entrants who could not afford to pay the fees, which NIFT-TEA Knitwear Fashion Institute was charging. It aimed to provide support for the development of middle-level management in the cluster. The infrastructure for the institute was provided by the association and the technical inputs were provided by the BDS.

• Apparel Training and Design Institute (ATDC) is three -years old organization, started in the cluster by Apparel Export Promotion Council (AEPC), to train the people at the shop- floor level. The focus of the Institute is to provide training in garment manufacturing technology.

•The Textiles Committee (TC) is an autonomous body promoted by the Ministry of Textiles, Government of India with the objective of monitoring and certifying the quality of the textiles and garments exported from India. They have a very good testing laboratory that covers all the needs of the industry, ranging from testing the stability of the fabric and colour fastness to testing the presence of azo /amino dyes. More than 50 per cent of the quality testing services in the cluster are performed by the Textiles Committee, besides providing Certification of Origin to avail the concessional duty by the importer in the importing countries. The relationship between the industry and the committee is an excellent one. Over a period of time, the Textiles Committee has taken a number of initiatives, like motivating knitters to manufacture technical textiles, organizing exposure visit for the domestic manufacturers to market their products abroad to improve their business. It has now shifted its role from regulatory authority to developmental agency. UNIDO identified Textile Committee to continue to undertake the cluster development programme in the cluster after completion of their project, as part of their strategy for sustainability of the initiatives undertaken by them in the cluster during their project period.

• Apparel Export Promotion Council (AEPC) is an arm of the Ministry of Textiles which has a Regional Office at Tirupur. The interface between AEPC and the exporters was frequent during the quota regime. However, with the dismantling of quota, the conventional role of AEPC has come down. Therefore, AEPC took the initiative to start Apparel Training and Design Centres at important garment clusters all over the country.

• Indian Statistical Institute (ISI) is an institute of national importance, founded with the objective of spearheading the knowledge of statistical and quality control techniques in the country. It has its SQC & OR branch office at Coimbatore. Prior to UNIDO’s Cluster Development Programme in the cluster, it was providing support to the spinning mills situated in and around Coimbatore, which are in the corporate sector. UNIDO took efforts to bring the benefits of statistical quality control and operation research techniques to SMEs in the cluster. It took initiatives to improve the quality and to minimize waste by adopting SQ & OR Techniques in association with ISI. As a result the possibility of achieving ‘zero defect’ and doing away with the final inspection in the garment unit was demonstrated through pilot programmes.

• South India Textile Research Institute (SITRA) is a research organization founded by the Ministry of Textiles, Government of India, essentially for undertaking research activities required for the spinning and textile mills situated in the Southern Region. Although SITRA took some initiatives to solve the problems faced by the processing units and treatment of effluents in Tirupur, the reach of the organization in the cluster is very limited.

• Sardar Vallabbhai Patel Institute of Textile Management was started by the Ministry of Textiles, Government of India, at Coimbatore to channelize the management skills required for the textiles and the garment industry. It offers full time post graduate programme for managing the textile units.
tirupurbds.com Industrial Associations in the Cluster
•Tirupur Exporters’ Association (TEA) is the prime initiator for promoting developmental initiatives in the cluster. TEA has more than 500 life members and nearly 200 associate members, all are exporters. The leadership of the Association is very strong and its proposals relating to the industry are well received by the policy- makers in the government. The leaders of TEA have got foresight and long-term vision for the growth of the industry. TEA assumed proactive role and executed number of projects independently, to address a wide range of issues inhibiting growth and development and under the Public -Private-Partnership (PPP) concept. Some of them are

     o Physical infrastructure-water supply for industrial use, sewerage system with SITP for Tirupur

     o Town and road development

     o Inland Container Depot

     o Industrial Complex and Apparel Park

     o Trade Fair Centre:

     o Institute for Supervisory, Managerial and Creative Manpower Development

     o School Education (PAU)

     o Quality Management Systems

     o Skill Upgradation in Designing

Some Important TEA Projects & Initiatives

• TEA Public School - 1995

• NIFT-TEA Knitwear Fashion Institute, 1997 & 2008

• Domestic and Industrial Water Supply through SPV-NTADCL

• India Knit Fair Complex (IKF) - 1997

• Netaji Apparel Park-2005 comprising 60 units, 15.00 lakh sq. ft of built- in space- as per international standards, for manufacture of knitwear

• E-Readiness Centre with the following facilities, under Project Vikas, to disseminate latest ICT knowledge to cluster actors

     o 4000 sq ft, well- furnished modern IT training centre, with video E-conferencing facility with the investment of US $ 250000

     o Place for ISV to meet local companies for ICT needs

     o Management of Tirupur portal

     o Facilities for conducting training programmes for the managerial and supervisory cadres

Some of the special assignments taken up by them are

• Some of the special assignments taken up by them are

• Some of the special assignments taken up by them are

South India Hosiery Manufacturer Association (SIHMA) is the oldest association in the cluster with more than 1,700 members, who cater to the domestic market. The vision of the leadership and foresight of their members was relatively low. Due to the efforts taken by UNIDO during their Cluster Development Programme and the subsequent handholding by the Textiles Committee, they have taken a number of developmental initiatives like starting of SIHMA Fashion Training Institute, starting of ‘Arbitrary Council’, organizing exposure visits for exploration of overseas markets for their members, setting up of information centres and subcontracting exchange etc..

Dyers’ Association of Tirupur (DTA), which was earlier known as Tirupur Dyers’ Association (TDA) has nearly 700 members who are processors and dyers. The Association took very active steps to address the environmental regulations faced by its member by making efforts to construct Common Effluent Treatment Plants (CETP) and individual effluent treatment plant. Due to its continuous efforts to address environmental related issues, 20 Common Effluent Treatment plants and 150 individual treatment plants, with RO technology have come up in the cluster to comply with the order of the Tamil Nadu Pollution Control Board for “zero” discharge of effluent from the dyeing units. During UNIDO’s intervention in the cluster, efforts were made to educate the members to test the quality of chemicals used, to reduce the load of the effluent discharged by the units and to improve the quality of processing by conducting training programmes. The Association does not make much effort to develop the business of its members. The relationship with the members and the Association exists mainly to address the regulatory and environment related issues.

KNITMA is an association of knitting units in the cluster. The association was dormant for a long time without much of activities. Due to increase in the awareness level among the members of the Association about the challenges that were likely to emerge after the withdrawal of MFA and the level of preparedness required to face the competition, the Association started taking a number of initiatives recently. This is now one of the most pro-active associations in the cluster. The Association is closely working with the Textiles Committee to indentify the opportunities to manufacture “technical textiles”. A number of exposure visits, seminars and meetings are being organized at frequent intervals to support the members to diversify their product profile.

Tirupur Export Knit Printer Association (TEKPA) is another active association formed by the proactive owners of textile printing units, who have felt the need for collective initiatives. It has 280 members. Nearly 50% of them are micro units having one or two manual printing tables. Another 25% of the units have both manual and automatic printing units. The remaining 25% have advanced machines in printing. Within a short period of five years of its service TEKPA has been able to construct a building of its own for its office, conducting regular meetings to discuss business related issues, publish monthly journal for its members and is planning to start an institution to train the employees in their units to upgrade their skills

Tirupur Bleachers Association (TBA) started during the year 2005 has got 120 members. Many of them have membership in dyers’ association too. TBA was started mainly to handle the environmental and pollution related issues which the members were facing. The Association has not taken any developmental initiatives so far, other than addressing the regulatory issues and conducting periodical meetings.
tirupurbds.com Financial Institutions
The cluster has branches of almost all the nationalized and private banks in the country. Almost every branch has the facility to deal with foreign exchange transactions. MSMEs in the industry across the value chain use the facilities offered by the banks. They do resort to support from unorganized financial system, in case of emergency needs. There are a number of NBFC and lending institutions too to provide support for purchase of vehicles and machineries on- hire- purchase basis.

Small Industries Development Bank of India (SIDBI)

SIDBI, an apex institution for promotion, financing and development of industries in the small scale sector, has a branch office at Tirupur. It extends direct and indirect financial assistance to MSMEs, in the cluster.

National Small Industries Corporation (NSIC)

National Small Industries Corporation has a branch at Coimbatore. It also has an off shore service facility at Tirupur. An official from Coimbatore office visits Tirupur on pre fixed days, every month to meet the requirements of MSMEs at Tirupur. South India Hosiery Manufacturers Association has extended the infrastructure support and office space for NSIC’s operation.
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