With file photo / Textile mills in Tamil Nadu start investing in modernisation
Textile mills in Tamil Nadu are investing in modernization and capacity expansion following a four-year industry crisis. Increased global demand for yarn, particularly from China, has provided the liquidity necessary for these upgrades.
Why it matters
It signals a potential economic recovery for a major manufacturing sector in India, though rising cotton prices remain a threat to profitability.
Following one of the worst crisis for the last four years that the textile industry in Tamil Nadu has faced, demand has revived for cotton and blended yarns in the last few months, triggering investments in the mills.
To quote a few instances, KPR Mills informed the Bombay Stock Exchange on August 10 that it is investing ₹260 crore to modernise and expand two of its spinning mills at Karumathampatti in Coimbatore district and these will be operational by the end of the third and fourth quarters of this financial year; the Pallava Group based out of Pallipalayam is investing for modernisation and capacity addition; A medium-scale textile mill at Kannampalayam area is adding capacities by sourcing second hand machinery.
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