Coimbatore -Textile and Engineering City of India

[Anniyan]

Originally Posted by greatshankar

Coimbatore ONE - By ETL Infrastructure Ltd.,

Set for takeoff

Setting out is in progress at the site where ETL is promoting an IT park in Coimbatore

Coimbatore has never had it so good. Talks of investment pouring in are thick in the air. Some have become public knowledge like the L&T planning to establish a massive engineering facility near the city; or Gangotri Textiles going for Rs 350-crore investment to ramp up capacity in weaving, processing and garment manufacture.

Others are quietly going ahead with their expansion plans but being privately owned, there is little talk of their investment decisions. According to the grapevine, new players waiting in the wings include the Rane group of Chennai and the wind energy major Suzlon. The city is on course to become a software hub with Cognizant Technology Solutions establishing its facility at the software park in the Kumaraguru College of Technology. Elnet Technologies Ltd (ETL) has begun work on its IT Park at Peelamedu. The Sate Government's ELCOT also has acquired 30 acres of land to build an IT park on the lines of Chennai's Tidel Park behind the Government Medical College. The basic infrastructure alone will cost about Rs 250 crore in these two projects.

Other big- ticket investors include Precot Mills, K.P.R. Mills and S.P. Apparels. The Coimbatore Tiny and Small Foundry Owners Association is establishing foundry parks at Arasur and Manickampalyam involving an investment of about Rs 100 crore.

The hospitality industry is also in for good times and the Tata group has begun preliminary work in building a hotel in the city. There are reports that a Chennai-based hotel group is also interested in the city.

What has suddenly made Coimbatore an investment hotspot? While many of the investment plans are still to crystallise, their impact is unmistakably felt in several spheres such as the hospitality sector, real estateand retail business. The general mood is upbeat though there is hardly any attempt by either the Centre or the State Government to hard-sell Coimbatore as a preferred alternative to Chennai or Bangalore, where the civic infrastructure seems to be cracking up.

Coimbatore is consolidating its position in the industrial map of the country in a variety of fields — textiles, auto components, pump manufacture, readymade garments, textile machinery, castings and software.

The city, which was in the grip of prolonged recession in the 1990s due to the twin blows — industrial recession and the serial bomb blasts that rocked Coimbatore in 1998 — has in the last couple of years shaken off their crippling impact. Taking the buoyancy in retail as a yardstick one can safely conclude that Coimbatore has scripted a perfect growth story.

In the last two or three years, large textile and jewellery showrooms have been established by Alukkas and Kalyan group from Kerala, Ganapathy Silks from Sankarankovil and Shree Krishna Collections from Chennai.

Another indication of growing interest in the city is the spurt in the number of flights to and from Coimbatore. From a handful of daily flights, as many as 19 flights operate here and more airlines are eyeing the Coimbatore skies. There has been phenomenal growth in the passenger traffic in the past two years — from around 24,000 in December 2003 to 41,000 in December 2004 and 60,062 in December 2005.

The growth in the number of two and four-wheelers in the last two years in a city already known for its love for automobiles is yet another proof that Coimbatore has finally arrived as an investment destination. Nandini Rangaswamy, Chairperson, CII, Coimbatore Zone, says the textile mills in the region have seized the opportunity offered by the Textile Upgradation Fund (TUF) to modernise and expand capacity. With textile mills in developed countries like the US closing down, the manufacturing activities have shifted to countries such as China and India. Some of the blue-chip textile mills of Coimbatore had regularly modernised their operations, maintained high quality and productivity and kept their costs under check. These mills were able to weather the difficult times of the 1990s. Many mills in the private sector have quietly gone for forward and backward integration.

With metros like Chennai and Bangalore witnessing saturation, the attention of investors is turning towards Tier-II cities and surveys have shown that Coimbatore figures among the top 10 cities as a potential investment destinations. She points out that L&T would have done its homework before buying a vast stretch of land near Coimbatore to establish a manufacturing unit. The availability of skilled and technically qualified manpower, pleasant climate, facilities like water and power, and quality educational institutions have catapulted the city as a top investment choice.

Nandini adds that five years ago when the CII began its promotion of Coimbatore as an IT destination, Bangalore and Chennai were still evolving as IT hotspots. At that time there was very little talk of any investor coming to Coimbatore. But in the last two years the inquiries have increased; the IT sector has started looking at Coimbatore because of saturation in tier-I cities.

"But I hope the development of Coimbatore will be sustained and widespread and we don't go the Bangalore way." While it would be premature to quantify the investment that the city will soon witness, land prices are shooting up, havingappreciated by 40-50 per cent in a year.

[Anniyan]

Aiming for the sky

The Tirupur-based Park group of institutions has aligned with the Malaysia-based Link Aerospace Ltd to promote an aviation academy in Coimbatore.

The joint venture intends to train human resources needed for the aviation industry like commercial pilots and aeronautical maintenance engineers and is to be set up with an investment of Rs 50 crore.

"The proposed aviation academy will be a separate business entity. The Park Academy of Aviation will partner with Link Aerospace Ltd in the 50:50 venture," said r R.V. Ravi, the group Chairman.

The Park group, which runs educational institutions including an engineering college, will provide the required infrastructure and faculty for the `Aerospace Academy'. The academy would be located at the Park College of Engineering at Kaniyur near Coimbatore.

more..http://www.thehindubusinessline.com/...0400040200.htm

[Anniyan]

An emerging IT hub
http://www.thehindubusinessline.com/...0400070200.htm



Bracing up for IT competition

As companies such as L&T and software majors prepare to enter Coimbatore, the question is: Can traditional industries retain talent in the face of better remuneration elsewhere? Already, a lot of churning is taking place but mostly in the textile space. But now engineering industry too seems to be waking up to the reality of competition in the manpower space.

Nandini Rangaswamy, Chairperson, CII, Coimbatore Zone, says in her personal capacity as an industrialist, "It is very, very difficult now" to find qualified manpower at mid-level managerial positions and above in Coimbatore. The existing industries "feel threatened by IT" and the attractive salaries the sector offers. Cost of living would go up too, but the service industry would welcome this development since it would give a boost to the general economy.

She said unlike many tier-II cities, Coimbatore was already a highly industrialised town, and more investment would improve the city's economy. Though she's not against competition, development should be in a sustained way as not to hurt existing industries

http://www.thehindubusinessline.com/...0400030100.htm

[Anniyan]

Enterprise reborn

The past decade saw a lot of change, so much so that the saying "Change is the only constant in the world" seemed appropriate for India and, in particular, the city of Coimbatore. It saw its main industry, textiles, battered and the other trades also reduced to a shadow of the original due to various problems, including communal issues.

Multinational companies had spotlighted Coimbatore as a potential destination for manufacturing facilities before the mid-1990s and after the slowdown the general feeling was that this was a ghost city, which had missed the opportunity and may not make the grade amongst the leading cities of the country. The New Year sees Coimbatore as busy as ever; there are six flights a day to Chennai, five to Mumbai, and all of them flying full. There is even talk of Singapore and Frankfurt being linked to the city. The hotels are full and one cannot get rooms at short notice. (more)..http://www.thehindubusinessline.com/...0400130400.htm

[nik]

Originally Posted by Anniyan

Enterprise reborn

The past decade saw a lot of change, so much so that the saying "Change is the only constant in the world" seemed appropriate for India and, in particular, the city of Coimbatore. It saw its main industry, textiles, battered and the other trades also reduced to a shadow of the original due to various problems, including communal issues.

Multinational companies had spotlighted Coimbatore as a potential destination for manufacturing facilities before the mid-1990s and after the slowdown the general feeling was that this was a ghost city, which had missed the opportunity and may not make the grade amongst the leading cities of the country. The New Year sees Coimbatore as busy as ever; there are six flights a day to Chennai, five to Mumbai, and all of them flying full. There is even talk of Singapore and Frankfurt being linked to the city. The hotels are full and one cannot get rooms at short notice. (more)..http://www.thehindubusinessline.com/...0400130400.htm

This is what I had mentioned a few posts earlier... great that media is waking up to Coimbatore

[Anniyan]

INFORMATION TECHNOLOGY (IT) is now the talk of the town, and everything seems to revolve around it. From employment opportunities to entertainment, the city is all set to gear up for a character makeover with more IT ventures taking shape.

For many, this opens up scope for setting up entertainment avenues such as shopping malls and multiplexes. Thus, entertainment comes as a package with the IT dream. Builders too seem to be cashing in on the trend by catering to the corporate clientele.


For instance, Mayflower Enterprises, builders specialising in residential projects, has announced their latest IT Park coming up at ATT Colony

[cbeboy]

Plans for a bigger terminal


http://www.blonnet.com/2006/02/04/st...0400050200.htm

[nik]

Nice one after a break...

[WillyWick]

Chinese textile machinery makes inroads into India

As the textile machinery manufacturers from Germany, China and Korea bet high on Indian industry, taking advantage of the post quota period, the indigenous machinery manufacturers are losing out due to the delay in delivery. Therefore units in India prefer imported machines.

Going by the current surge in the export of German machinery to India, the VDMA, the trade body of the German Textile Machinery Association, expects that the export to India would touch 200 million euros, says an industry report.

India imported machinery worth 140 million euros from Germany in 2004, an increase by 30 per cent. It again increased by 84 per cent during 2005.

China is also gaining advantage in this field. A ten-member delegation, on behalf of the Cotton Textiles Export Promotion Council (Texprocil) and the Southern India Mills’ Association (SIMA), visited China in November last year to evaluate the machinery there.

As of now, 40 to 50 textile mills from Coimbatore have evinced keen interest in placing orders with Chinese machinery manufacturers. “More than five mills have placed bulk orders for their projects, and 15 mills are mulling importing machineries,” K Selvaraju, secretary, SIMA, told Business Standard.

The China Texmatech Company Limited (CTMTC) is likely to set up its shop in Coimbatore by the end of this month which will warehouse all critical components so that the mills in the region can make use of them.

Commenting on this, S V Arumugam, chairman of the association, said that the textile mills prefer spinning machines from China mainly because of the longer time taken by indigenous manufacturers for delivery.

“In order to survive in the highly-competitive market, India’s cotton-centric textile manufacturers need to focus on upgrading their machinery besides creating new facilities and additional capacities. They require better machinery. Though domestic machines are competitive in terms of quality and price, the delivery schedule, which even extends to two to three years, is a matter of concern. Chinese machines require a delivery time of only four to six months,” he added.

Moreover, the Indian textile machinery manufacturers are not able to bridge the demand-supply gap. The demand for the frames is almost double the supply in India, with a requirement of 4 million spindles a year.

To take advantage of the huge demand the Chinese textile machinery suppliers are planning to come out with a uniform pricing policy in order to enable the textile mills in India to firm up their orders.

http://www.business-standard.com/com...&autono=214279

[WillyWick]

LMW to increase spinning machine output

COIMBATORE: Lakshmi Machine Works (LMW), the Coimbatore-based textile machinery manufacturing major, has embarked on an expansion and modernisation programme to increase its spinning machinery production.

"We hope to complete it by mid-2006-07," says R. Rajendran, Chief Financial Officer. Orders have been placed already for the mother machines.

Through the Rs. 200-crore expansion and modernisation programme, the company hopes to increase its annual production from about 1.8 million spindles to about 2.7 million spindles.

We are also creating capacity and trying to meet the industry's requirement," he said. The company's spinning machine production (in terms of volume) went up by about 45 per cent in 2004-05. It is expected to go up by 35 per cent this year and by another 35-40 per cent during the next fiscal.

LMW's turnover in 2004-05 was Rs. 990 crore and this was expected to increase by 35-40 per cent during the current fiscal, he said.

http://www.hindu.com/2006/02/08/stor...0804031800.htm

[nik]

During the days of "old economy" LMW use to be the pick. How many remember I dont know

[WillyWick]

CBE-Mettupalayam NH work to begin soon

Coimbatore, Feb 10: Union Minister of Road Transport and Highways, T R Baalu, today said the works for Coimbatore-Mettupalayam and Coimbatore-Tiruchy National Highway would be taken up soon, even though only one tender was received at present.

Speaking after laying the foundation stone for strengthening and upgradation of Karur-Coimbatore section of NH-67, here, he said that only one tender has been received at present.

Though the department was not in a position to go ahead with a single tender, he would try to begin the works for the project as early as possible, in view of the demands made by various speakers at the function, Baalu said.

He also assured to consider the demand for a ring road around Coimbatore, to avoid traffic congestion in the city.

When brought to his notice on continuation of collecting toll even after the expiry of the contract period, Baalu said though after transfer of the road to the Government, the toll, in some cases, was being collected for maintenance.

The 114 km long Karur-Coimbatore road, at a cost of about Rs 176 crore would be completed within two years, the minister said, adding that the project connecting the two cities would tremendously enhance the industries and commerce in the region

http://www.chennaionline.com/colnews...AME=Tamil+Nadu

[nik]

Kovai is a main nod on the Bangalore - Cochin freeway proposed to be built by Malaysia as part of freeways connecting important business cities of South

[WillyWick]

Tirupur- Indian Textile hub & Its hurdles

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.

http://www.hindu.com/mag/2006/02/12/...1200190400.htm

[nik]

Generally Kovai had and TN have a better quality of life. Govt must ensure this by financing more
health and other welfare schemes

[WillyWick]

Sub-contracting exchange a reality now

The Tirupur Industrial Federation (TIF), an umbrella organisation for the job-working units comprising South India Imported Machine Knitters Association, Computer Embroiderers Association, the Knit Compactor Association and Tirupur Raising Association, will run the exchange. The Development Commissioner of Small Scale Industries, New Delhi, has granted Rs.6.5 lakhs for establishing the exchange and to meet recurring expenditure for three years.

According to Ahill M.S. Mani, president of TIF, any job-worker who undertakes works on sub-contract basis for knitwear exporters can become a member. "Now exporters get different types of orders requiring different washes and finishes.

To execute the order they find it difficult to identify the right unit that has required machinery. And sometimes all the orders are being dumped at a place or two due to lack of information.

The exchange will help them in identifying the right supplier ,'' Mr. Mani said. Even an operator who has only one knitting or embroidery machine can get his share.

http://www.hindu.com/2006/02/10/stor...1013430100.htm

[Anniyan]

Real Value Promoters bullish on Coimbatore

Real Value Promoters expects to build a shopping mall of 5 lakh sq ft and a software park of 4.7 lakh sq ft in Coimbatore.

The two projects would see close to Rs 300 crore investments. V S Suresh, managing director, Real Value Promoters, told Business Standard, “We have purchased two adjacent properties of over 5 lakh sq ft (about 11 acres) in Avanishi Road for the shopping mall project and are looking at acquiring additional land as well.”

The real estate builder's investment in the shopping mall is expected to be close to Rs 200 crore, which it expects to fund through bank borrowings. This project is planned to be completed by the beginning of 2007. The shopping mall will contain shops, multiplex, food court, restaurant, and a huge parking area.

Real Value Promoters will be promoting its largest a software park of 4.7 lakh sq ft near the Coimbatore airport

http://www.business-standard.com/com...&autono=215136

[WillyWick]

Coimbatore textile industry eyes used machinery in Europe

After China and Germany, it is now the turn of Europe and the United States to make inroads into the Indian textile industry with their second-hand spinning and weaving machines.

Many units in the textile industry in the Coimbatore region are evincing interest in importing second-hand ring spinning frames offered by textile units in Europe which were closed down after the abolition of textile quota.

Most of the textile units in the region are scaling up their production capacities in spinning, weaving and processing but they are strapped by the delay in the supply of machinery from indigenous manufacturers.

http://www.business-standard.com/com...&autono=215133

[nik]

Originally Posted by WillyWick

Coimbatore textile industry eyes used machinery in Europe

After China and Germany, it is now the turn of Europe and the United States to make inroads into the Indian textile industry with their second-hand spinning and weaving machines.

Many units in the textile industry in the Coimbatore region are evincing interest in importing second-hand ring spinning frames offered by textile units in Europe which were closed down after the abolition of textile quota.

Most of the textile units in the region are scaling up their production capacities in spinning, weaving and processing but they are strapped by the delay in the supply of machinery from indigenous manufacturers.

http://www.business-standard.com/com...&autono=215133

[Anniyan]

nik , are you trying to increase your post count