Tamil Nadu   

Ready-to-cut fabric a boon for Tirupur exporters

M. Gunasekaran

It reduces transaction time and cuts overhead costs

TIRUPUR: The first-ever initiative to supply ready-to-cut finished fabric to exporters here has turned out to be popular in the market.

For knitwear exporters, always struggling to meet the short lead-time, it is proving to be handy and making exporting easier, as it reduces a major portion of transaction and overhead costs.

Saravana Spinning Mills with a spinning capacity of 70,000 spindles entered the business three months ago after making huge investments in forward integration in knitting, dyeing and other finishing processes.

"Initially, we had a doubt whether we could succeed. But, it proved to be a success and many major exporters now want to place orders with us," says K. Prabhu Shankar, executive director of SSM Fine Yarns.

Rs. 50-crore factory

The Tirupur-based company established a Rs.50-crore dyeing factory at Batlagundu in Dindigul district with a capacity to dye 20 tonnes of fabric a day.

It has the largest production capacity in south India in yarn dyeing with a daily production of 8 tonnes a day.

The company has put up machines to knit 10 tonnes of fabric a day at its spinning unit at Vedasandhur, 100 km from here.

On the new venture, Mr. Shankar points out that though spinning, stitching and knitting facilities have grown manifold in Tirupur in recent years, the processing sector remained a weak link in the value chain and they wanted to fill the gap.

It is handy for small and medium-sized exporters. Most of them struggle to maintain short deadlines and ensure quality of the garment as they distribute their job work orders among three or four knitting and dyeing units, based on the size of the order. Much of their time is wasted in communicating to various units and their margins shrunk in transportation and in overheads, he adds.

According to him, after confirming the orders with the buyer, the problem starts for an exporter from sourcing yarn from a spinner.

Hassle-free

"If any exporter plans well, the business will be much easier for him. We supply the fabric after finishing all processes in 40-50 days. It will be hassle-free at the end of the day, " Mr. Sankar adds.

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