Thiagarajar Mills Group and Germany’s Euro Textiles Announce Rs.100-Crore Textile Manufacturing Venture in Tamil Nadu

Advanced Jacquard Air-jet Weaving Facility to Target Global Markets; Commercial Production Planned Within Eight Months.

Thiagarajar Mills Private Limited, Madurai, through its group company, has signed a Memorandum of Understanding (MoU) with Euro Textiles GmbH & Co. KG, Germany, to establish a new textile manufacturing enterprise at Virudhunagar, Tamil Nadu, with a proposed investment of Rs.100 crore. The venture aims to strengthen India’s export-oriented textile industry through advanced manufacturing technology and enhanced access to international markets.

Hari Thiagarajan, Chairman & MD, Thiagarajar Mills

The proposed facility will manufacture premium-quality 100% cotton jacquard fabrics and other value-added textile products for export markets, with commercial production targeted to commence within eight months.

State-of-the-Art Manufacturing Infrastructure

The project envisages the installation of 48 advanced Air-jet looms equipped with Jacquard technology, supported by modern warping and sizing facilities. This sophisticated infrastructure will enable the production of high-quality cotton jacquard woven fabrics featuring intricate designs, consistent quality and the flexibility to meet evolving international customer requirements in the fashion and design industry.

The first phase is planned to achieve an annual production capacity of 3 million metres, with the second phase envisaged to double capacity to 6 million metres annually, enabling the venture to scale operations in line with export demand. The second phase will also envisage investment into value added technical textiles and niche patented textile fabrics catering to the growing non-conventional textile space.

Krishna Javaji, Managing Director, Euro Textiles, Germany

A Strategic Indo-German Partnership

Established on 26 June 1935, Thiagarajar Mills has a longstanding presence in the Indian textile industry, with expertise in cotton yarn, combed yarn, hosiery yarn and related textile products. Its manufacturing capabilities, technical expertise and commitment to quality will underpin the proposed venture.

Euro Textiles GmbH & Co. KG, based in Germany, brings experience in textile trading, sourcing and international market access. The partnership will combine Thiagarajar Mills Group’s manufacturing strengths with Euro Textile’s established market access, new product development, go to market strategy and international business network creating a strong platform for expanding the global reach of Indian-made cotton fabrics.

India–EU Trade Partnership: An Emerging Opportunity

The proposed investment comes at a pivotal time for India’s textile export industry. India’s fabric exports to the EU stood at approximately USD 0.08 billion, while the EU’s fabric import was valued at USD 2.38 billion in 2025.

The India–EU Free Trade Agreement (FTA), which is yet to be finalised and implemented, is expected to create significant opportunities for Indian fabrics in the European market and drive substantial growth in the textile industry. Strategic investments in advanced weaving technologies, value-added products and globally benchmarked quality standards will be instrumental in capitalising on this potential and accelerating export-led growth.

Strengthening Tamil Nadu’s Textile Industry

The proposed project facility is expected to support southern Tamil Nadu’s industrial development, create employment opportunities and reinforce Tamil Nadu’s position as a major textile manufacturing hub. By integrating advanced weaving technology with international market expertise, the venture aims to meet growing global demand for premium cotton fabrics and differentiated textile products.

This collaboration reflects the partners’ shared commitment to technological advancement, product excellence and export-led growth. With a proposed investment of Rs.100 crore, a phased production capacity of up to 6 million metres annually and a clear focus on international markets, the venture is poised to contribute to the continued growth of India’s textile manufacturing and exports.