Our Bureau

Coimbatore , Aug. 26

CONSCIOUS of the emerging competitive environment in the quota-free international textile trade, Tirupur's knitwear industry has staked a share of Rs 260 crore out of the estimated Rs 1,400 crore disbursed for Tamil Nadu under the textile technology upgradation fund scheme (TUFS) so far.

This figure of new investment made by the Tirupur knitwear speaks volumes on the massive ploughing back of profits and fresh investment into upgrading knitwear production capabilities to meet international requirement, said the Tirupur Exporters Association (TEA) President, Mr A. Sakthivel.

Speaking at the 14th annual general meeting of the TEA held on Thursday, Mr Sakthivel said the Netaji Apparel Park, the TEA-promoted park project, which is scheduled to go on stream in the next two months, would mark the showpiece of modern knitwear production facility not only for Tirupur but also for the whole country.

He said that with an investment target of around Rs 250 crore that will go into the park's first phase, the facility would contribute to an incremental foreign exchange of Rs 1,500 crore and would satisfy the needs of the high-volume buyers who would look for dedicated production facilities.

As for the TEA-promoted offshore warehousing to take advantage overseas market for ready goods, the TEA President said that the association had signed an MoU with the Tuticorin-based St John Freight System for locating a warehousing in Europe.

The latter after a market survey has decided to establish a warehouse in Antwerp in Belgium.

As an interim measure, St John has set up an office and is providing a customised logistic solutions to select large buyers.

The TEA and St John would complete the formalities for a joint venture company for the warehousing, which may materialise by beginning of 2005, he added.

The TUFS disbursal by banks and financial institutions in the country is about Rs 5,400 crore.

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