A dream going sour
M. GUNASEKARAN
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Tirupur may be an exporter's dream but pollution and lack of infrastructure may put an end to its success.
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GOING GLOBAL: New avenues are opening up for the knitwear industry. Photo: M. BALAJI
NOBODY could have imagined that a small, drought-prone town would see such an explosive growth in two decades. After having gained an international repute as a reliable cotton knitwear supplier, Tirupur, in western Tamil Nadu, has emerged as the knitwear capital of India with annual exports over Rs.6,000 crores.
For an international buyer who wants to source cotton knitwear, Tirupur has emerged as the second best choice, next to China. Seventy per cent of the country's total cotton knitwear exports originate from here.
Robust growth
Along with export-led growth, Tirupur is one of the few Indian towns that took advantage of globalisation and economic reforms. Tirupur began exporting knitwear in the early 1980s. In 1985, the turnover was just Rs.15 crores. It touched Rs. 5,700 crores last year and is expected to cross Rs. 7,000 crores this year.
Tirupur's success story began modestly with producing innerwear for the domestic market in the 1940s. The town still produces knitted garments worth Rs. 1,750 crores for the domestic market. The industry has evolved tremendously in the last 20 years. "Whenever a new apparel machinery is introduced anywhere in the world, Tirupur is the first buyer. We never hesitate to invest in technology upgradation. It has become routine to invest our profits in expansion and modernisation," says A. Sakthivel, president of the Tirupur Exporters' Association (TEA). Coimbatore MP, K. Subbarayan, says the robust growth has positively influenced the socio-economic profile of the region. Land prices have gone up and the agrarian community that was earlier frustrated due to acute water scarcity has got a fresh lease of life.
The industry employs more than 3,00,000 workers and expansion requires 1,00,000 more skilled workers. Labour is sourced mostly from the southern districts of Tamil Nadu and, to an extent, from neighbouring Kerala. Buses ply up to a 50-km radius every day in search of workers. Every day 10-15 families come into Tirupur looking for employment. Since it caters to all segments, including fashion and high value garments for all age groups, all leading brands and chain stores source their garment needs here. Bulk orders are more the norm than the exception now.
With new avenues opening up, the size of the units and investment in them has increases dramatically. "Earlier a company with five machines and 20 workers was considered a basic unit. If one had 25 machines and 100 workers, it was rated big. But now factories are coming up in 20,000 sq.ft. to 1,00,000 sq.ft. premises with 1,000 machines," says G. Karthikeyan, the TEA secretary.
Earlier, an order of 2,000 T-shirts was considered big, but exporters now talk in terms of lakhs. "Buyer preferences are predominant. We are flexible enough to accommodate the demands, irrespective of the volume or style," says Karthikeyan.
Adverse impact
The staggering growth has had adverse impact in the form of air, land, river and groundwater pollution. Textile effluents from 700-odd dyeing units discharged 100 million litres of treated effluents a day and irreparably damaged the Noyyal, besides leaving behind hundreds of tonnes of hazardous sludge as residue. Thousands of acres of agricultural lands downstream of Orathupalayam Dam have been seriously affected. Under constant pressure from the Madras High Court, where the affected farmers and polluters are locked in battle, there has been some progress in attaining zero effluent discharge.
N. Kandasamy, President, Dyers Association of Tirupur, says, "Without active support from the government, it is difficult to mobilise resources to put up reverse osmosis plants."
"The State government pushed the ball to the Centre's court saying export is a Central subject and has refused any financial assistance. In fact pollution control is a State subject. It is unfortunate that the Government washes its hands off when the industry badly needs its help," charges Subbarayan.
Dozens of Mercedes Benz and hundreds of other luxury cars ply in Tirupur; but there are hardly any good stretch of road. There is growing discontent among the citizens over poor infrastructure. People complain about poor quality of life. Children are the worst affected due to recurring respiratory diseases caused by dust allergies. At any given time, one can spot at least 50 foreigners in Tirupur.
"Through hard work and risk-taking entrepreneurship, we built up the business. We fear the poor infrastructure may drive buyers away," complains Ramu, a trustee of Valam, a private initiative, launched to create infrastructure. Valam is now building a bridge and road at a cost of Rs.2 crores through public donations to reduce traffic congestion.
Workers' conditions
The other side of the dream is even more pitiable. Says M. Chandran, a CITU leader: "After hours of toiling, workers still lead a pathetic life. They do not have access to good housing or quality education for their children. The living conditions of poor migrant women workers are even more pathetic."
Thousands of migrant workers lead a subhuman life in small rooms (called "line houses") on the banks of the stinking Noyyal and the outskirts of Tirupur. Open defecation is a common sight.
Unplanned growth has led to a sharp rise in land prices and exorbitant house rents. Lack of housing, health care and entertainment and high cost of living are the reasons for the constant shortage of labour.
As a positive step, an export house, Stallion Garments, is now constructing 400 low-cost houses for its workers. At least 20,000 more houses will be needed to accommodate the expanding workforce.
There is a long-pending demand from the South India Hosiery Manufacturers Association and other trade bodies to make Tirupur a district headquarters and Corporation.
"One-fifth of the town does not have a road, drainage and water supply. If the Centre gives back to us just one per cent of the foreign exchange that we earn, we could carry out tremendous changes," asserts Municipal Chairman M.N. Palanisamy.
Normally workers spend 12-14 hours a day in the workplace. The busy town has nothing as entertainment or recreation. As far as infrastructure is concerned, the town requires to be rebuilt.
Many say the success behind Tirupur is that there is no trade secret.
It is on open secret that the exporters' cherished goal of achieving Rs.15,000 crores exports in 2010, may remain a pipedream unless the issues of pollution and creating infrastructure including the construction of low cost houses on a massive scale are addressed.
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