Tirupur - History

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Tirupur - History

The development of Tiruppur, one has heard so much of knit wear boom in the press over the past few years. However, none of the explanations in the press have been able to explain why and how this little town in Tamil Nadu has come to be the centre of India's local banian and export cotton knitwear industry. The industry works through a web of small to mid-sized units, with fabrication here, processing elsewhere and stitching somewhere else. These networks of firms operate through jobworking, contracting and sourcing arrangements. The business families set up "sister concern" rather than large fully integrated factories. Despite of some of its difficulties, the business culture in Tiruppur is appreciating.

The historical research on Tirupur leads us back to the "thottams" or well irrigated farms around the town, as most of the industrialists of today have come from modest agricultural backgrounds. Though countless interviews about their lives and work, it has been realised that it was these modest farmers who have innovated in the organisation of the industry. There are many ways in which these ex-farmers came to the industry, worked in knitware firms and got to know the production close at hand and entered as small owners, often in family partnerships. As the industry grew from the old interlock banians to fine banians with an all-India market in the 1970s, the first generation of ex-farmer industrialists created "sister" units, often managed by their relatives, expanding the industries in dispersed units throughout the city. The uniqueness of Tirupur's work culture has made it difficult for the big Indian textile giants to enter and capture a large market share, as the rules and norms governing manufacturing and jobworking are often informal and personalised.

Local market is around 800 crore Indian rupees. There are more than 2500 apparel manufacturing units and 750 dyeing units in Tirupur. It also has 300 printing units, 100 embroider units and 200 other units like compacting, raising and calendering units. The export market was around Rs 8500 crores & local market is about 1500 crores in 2006 lo. Millions of pieces of underwear come out of Tirupur every year. Tirupur's hosiery factories are profitable successes, small jewels in India's economy. (It is one of the largest foreign exchange source for INDIA).

The transformation of Tirupur into this hosiery machine over the last couple of decades has had a downside. Its water sources are either hopelessly polluted by the hosiery factories or have dried up altogether, unable to keep up with the demand. For some years, Tirupur has had to truck in water for its residents, at a substantial cost. The infrastructure in the city is very poor, and various projects are underway to improve city infrastructure. One of these projects, just commissioned in 2006, is an innovative private/public partnership that has brought water and sewerage connections to the businesses and homes in the Tirupur area.

Tirupur - History

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