Tirupur Knitwear Cluster
The Tirupur knitwear cluster started in 1920. The first consignment was made in
1974. But it was only in the early 1990s that the momentum for export actually started.
The growth is attributed to the visionaries who founded the Tirupur Exporters Association
(TEA) to solve the problems faced by the industry. The total value of exports from
Tirupur touched Rs 11,000 crore in 2007, from Rs 290 crore in 1990.
The areas in which the ICT intervention has been seen to be quite useful at the
Tirupur cluster are: production scheduling, capacity planning, order management,
costing, resource planning, skill management, sampling, production and inventory
management. But overall, according to Project Vikas’s survey, it was found that
there were huge gaps in the use of ICT technology in some areas like merchandising,
designing, supply chain management and customer relations.
This cluster seemed more conscious about spending on ICT in keeping a watch on the
quality standards, as on the source supplies of exporters from the standardised
exports. The study also found that people had limited knowledge on the latest technologies
used like e-commerce, data warehousing etc. It was also found that there is limited
ICT “vision” for a proper integrated business.
Unlike the large firms in the Tirupur cluster, many of the MSMEs need strong support.
The most common obstacle that was felt during the implementation of ICT technology
in the cluster was the delay in the installation of systems due to restricted availability
of local software vendors who are mainly based at Chennai, Coimbatore or Bangalore.
Unlike the large firms in the Tirupur cluster, many of the MSMEs need strong support.
The most common obstacle that was felt during the implementation of ICT technology
in the cluster was the delay in the installation of systems due to restricted availability
of local software vendors who are mainly based at Chennai, Coimbatore or Bangalore.
Challenges
In the future scenario, when buyers will have a wide range of choices, it will become
imperative to reduce expensive inventories and also to evolve innovative methods
to electronically connect the entire value chain from fabric sourcing to manufacturing
of garments, from accessories to the integration of these to the final sales. This
calls for some critical strategies for all the cluster manufacturers to develop
business processes that would manage and implement e-technologies competently in
order to meet the demands.
Project Vikas Initiatives
Project Vikas has planned a number of initiatives to tackle these challenges. Under
the project, sensitisation programmes are being conducted to help enterprises understand
how the challenges before them can be well addressed through use of ICTs.
Project Vikas is also in the process of setting up an e-Readiness Centre in the
cluster. Training programmes for the local independent software vendors are being
conducted. Workshops for the CxOs and Directors of enterprises on ICT training are
also being conducted. Workforce training programmes are also planned.
To enable business development of the enterprises, Project Vikas has envisaged a
Web portal which would enable these businesses to connect with other business, and
help them find customers as well.