Tirupur exporters cut output 10-15%
Lower textile shipments to the US and European nations have forced the Tirupur export units to cut down production by 10-15% and reduce the workforce.
By Sutanuka Ghosal, ET Bureau | Updated:
KOLKATA: Lower textile shipments to the US and European nations have forced the Tirupur export units to cut down production by 10-15% and reduce the workforce.
Nearly 1 lakh people in Tirupur have lost jobs in the last six months. The units have also approached banks to restructure their loans and give them a moratorium of one year.
Nearly 20% of textile units in and around Erode, one of the major hubs of woven garment manufacturers and exporters in Tamil Nadu, have downed shutters and a number of them are operating “clinically.”
There are about 1,000 textile units in Tirupur and Erode. A Sakthivel, president of Tirupur Exporters' Association, said: “In the knitwear category, there has been no growth in the last few months. Tirupur has been severely affected by the Euro zone crisis. European buyers have cancelled orders.
Some of the buyers have even told exporters to hold the goods meant for shipment. Though the US offtake is slow, the situation there is better than Europe.
“There has been a substantial reduction in workforce over the last six months. Almost 1 lakh people have lost jobs and we are not sure what will happen to the existing workforce if this recessionary trend continues for long. The picture is not so bright though exporters are trying to make inroads into LatAm, Japan and other newer markets,” Sakthivel added.
Nearly 1 lakh people in Tirupur have lost jobs in the last six months. The units have also approached banks to restructure their loans and give them a moratorium of one year.
Nearly 20% of textile units in and around Erode, one of the major hubs of woven garment manufacturers and exporters in Tamil Nadu, have downed shutters and a number of them are operating “clinically.”
There are about 1,000 textile units in Tirupur and Erode. A Sakthivel, president of Tirupur Exporters' Association, said: “In the knitwear category, there has been no growth in the last few months. Tirupur has been severely affected by the Euro zone crisis. European buyers have cancelled orders.
Some of the buyers have even told exporters to hold the goods meant for shipment. Though the US offtake is slow, the situation there is better than Europe.
“There has been a substantial reduction in workforce over the last six months. Almost 1 lakh people have lost jobs and we are not sure what will happen to the existing workforce if this recessionary trend continues for long. The picture is not so bright though exporters are trying to make inroads into LatAm, Japan and other newer markets,” Sakthivel added.
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