At the 64th Annual General Meeting of the Southern India Mills’ Association (SIMA), held recently, new office-bearers were elected with a vision to tackle structural challenges and bolster the industry’s global competitiveness. Dr. S. K. Sundararaman, the Managing Director of Shiva Texyarn Limited was elected as the Chairman for the year 2023-24. Alongside, Mr. Durai Palanisamy, Executive Director at Pallava Textiles P Limited in Erode, was elected as the Deputy Chairman, and Mr. S. Krishnakumar, Managing Director of Sulochana Cotton Spg Mills P. Ltd. in Tiruppur, was elected as the Vice-Chairman for the same term.
Dr. Sundararaman is a distinguished figure in both the realm of Technical Textiles and Technical Education in India, holding an MBBS degree and a Masters in Business Management from Cambridge University, U.K. He is the Managing Trustee of the FIREBIRD INSTITUTE OF RESEARCH IN MANAGEMENT and has been actively involved in various national-level business forums. Mr. Durai Palanisamy, with an MBA in International Business from Southern New Hampshire University and a Bachelor of Technology in Textile Technology from PSG College of Technology, serves as the Vice-President of CII, Erode Zone, and is a part of the Committee of Administration of The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC). Mr. S. Krishnakumar, armed with a B.A. in Psychology from P.S.G. Arts College Coimbatore, ventured into the business in the late 80s and has made significant contributions to CSR activities, notably spearheading the plantation of 1.5 million trees in Tirupur, including 30,000 trees within his mill premises.
The Indian textiles and clothing industry, a major employment provider and significant contributor to GST revenue and forex earnings, faces multifaceted challenges. Structural issues concerning raw materials, tariff and non-tariff barriers, high production costs, scale of operation, transport costs, and capital outlay, coupled with external factors, have impacted the industry’s growth trajectory. The NDA Government, under the leadership of Hon’ble Prime Minister Shri Narendra Modi, has been actively focusing on enhancing the global competitiveness of this sector and has made strides in addressing these concerns. However, policy gaps and delays in reinforcing the raw material base and refunding government dues have hindered the industry’s ability to achieve sustained growth. Furthermore, there’s been a trend of capacity addition without sufficient consideration for the industry’s long-term needs and prospects, driven by attractive incentives offered by various State Governments. Despite these incentives, delayed disbursement of committed benefits has led to financial strain for new investments made under such policies. Given this landscape, adopting a holistic, long-term vision is imperative, not only to fill the void left by China in the textile trade but also to sustainably grow the sector.
The new office-bearers of SIMA emphasized their commitment to addressing structural challenges and enhancing the industry’s global competitiveness. Chairman Dr. Sundararaman pointed out that the industry has historically focused on cotton and its derivatives, leveraging the abundant and cost-effective homegrown cotton, which was traditionally available 5% to 10% lower than international cotton prices. However, recent years have seen erosion in this advantage due to the dominance of multinational cotton traders, an 11% import duty, and speculative trading on the MCX cotton futures platform. In contrast, producers of man-made fiber (MMF) and yarn have been shielded by substantial anti-dumping duties of up to 23%. Dr. Sundararaman commended the Prime Minister’s decision to remove anti-dumping duties on essential MMF raw materials like polyester and viscose staple fiber. However, challenges have emerged with the smooth supply of these materials due to new Quality Control Orders by the Bureau of Indian Standards (BIS), which haven’t considered most raw material suppliers to India. He urged the government to exempt VSF imported under the Advance Authorization Scheme and all special and value-added fibers and filaments not manufactured in the country. Dr. Sundararaman emphasized that achieving the envisaged growth in the textile business and exports hinges on increasing production in the MMF value chain and technical textiles, identified as the growth engines for the industry. He also appreciated the progress in Free Trade Agreements (FTAs) and hoped that the forthcoming FTAs with the UK and EU would bolster exports, provided structural issues related to raw materials are effectively addressed.
Dr. Sundararaman emphasized the urgent need for a Technology Mission on Cotton 2.0, advocating a mission-mode approach and substantial funding. He stressed that this initiative is critical for over 7 million farmers and the 35 million people in the textile value chain, as their livelihoods directly rely on the availability of quality cotton at an internationally competitive rate. He highlighted that India’s average cotton productivity is only around 430 kgs per hectare, significantly lower than the 1500 kgs per hectare achieved by more than 20 other cotton-producing nations. Dr. Sundararaman urged the adoption of modern seed technology and global best practices in agronomy to enhance productivity and empower farmers. He cautioned against increasing the Minimum Support Price (MSP) further, suggesting that increased productivity and the production of value-added cotton variants are more sustainable paths to higher revenue for farmers. Additionally, he advocated for exemptions for certain specialty cotton types, particularly ELS cotton and those varieties sold during April to October. Dr. Sundararaman urged the industry to focus on value addition, innovation, and niche products by leveraging support schemes like NTTM for technical textiles, PM MITRA park, and PLI scheme. He appreciated the proactive initiatives of the Tamil Nadu Government in enriching its textile policy to emphasize technical textiles, sustainability, textile processing, machinery manufacturing, and raw material facilities. He also stressed the importance of maintaining the status quo in certain State policies concerning power and labor, while advocating for the industry to actively pursue sustainability goals and leverage coastal routes for reduced transport costs and environmental impact.
In closing, Dr. Sundararaman highlighted SIMA’s commitment to facilitating a Management Development Programme on “New-Gen” to nurture young entrepreneurs and startups. The Association aims to continue its engagement with industry stakeholders, government bodies, and organizations to contribute positively to the textile sector’s growth and competitiveness.