Southern States - Kerala   

Stress on value-added items to enhance competition

By Our Staff Reporter

COIMBATORE Dec. 18. A Confederation of Indian Industry (CII) study on the south Indian textile industry has recommended measures such as consolidation and export of value-added items to enhance competitiveness among units.

The CII-Southern Region commissioned Deloitte Haskins and Sells to conduct the study on `Introspecting Competitiveness of the Textile Sector in Southern Region', covering spinning, weaving/knitting, processing and garments sub-sectors with the objectives of analysing the industry, assessing the key issues affecting it, identifying the emerging and future trends and options for enhancing competitiveness.

The report lays stress on development of "informal business relationship pools" among clusters for capacity consolidation to enhance firm-level competitiveness.

"This would enable a single reference point for an international customer and significantly contribute to profitability."

It also suggested that the industry restructure itself to face global challenges and the restructuring options included consolidation and forming cluster groups.

It recommends that the decentralised sector concentrate on niche product range and the organised sector on mass items.

Operational practices such as supply chain management, management information systems and total cost management were essential for the industry.

Interaction among groups in the textile value chain must be "significantly increased" to understand one another's issues and should evolve a "common minimum programme".

The report listed rationalisation of the tax structure, low-cost debts and establishment of superior infrastructure under an eight-point "wish list".

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