Nethaji Apparel Park *
Tiruppur an obscure town in erstwhile Coimbatore District and newly formed Tiruppur District has been placed in the knitwear map of global apart from catering to the whole India. The success story of Tiruppur can be mainly attributed to the entrepreneurial skills of the people coupled with hard work, commitment to the job. Tiruppur can take its own pride that within a matter of two decades the export has grownup by leaps and bounas, from less than Rs.10 Crores in 1984 to Rs.11,000 Crores in 2006-07. However, due to appreciation of rupee against dollar in 2007-08 export has declined by 10% and registered Rs.9,950/-. As far as Tiruppur exporters are concerned true to their spirit and entrepreneurship, they have taken lot of efforts to cut down the cost and sustain in the global market and aiming to reach 4 billion by 2010. During the year 2008-09, due to financial crisis in US and EU market, the exports for half yearly period declined to Rs.5,050 Crores compared to Rs.5,350 Crores recorded in the corresponding period of 2007-08.
The first knitwear unit in Tiruppur was set up in 1925 and the growth of the industry was slow till late 1930s. A series of strikes in late 1930s in knitting factories in neighbouring towns of Salem and Madurai resulted in the opening of new firms in Tiruppur. Subsequently, it emerged as the prominent centre for knitwear in South India by 1940s. In 1942, 34 units were engaged in the production of knitwear all these units were composite mills and the production was carried out in the same unit (sic). There are also references to some units performing specific tasks / operations like bleaching and dyeing, located in the larger units. By 1961, the number of units rose to 230 and till early 1970s, the industry catered only to the domestic market. These units were mostly composite mills without any subcontracting system of production. It was in the 1980s, the export market began to expand and subsequently Tiruppur emerged as the largest exporter of cotton knitwear from the country, accounting for roughly 80 percent of the total cotton knitwear exporters.
In 2002, Ministry of Textiles, Government of India announced the Apparel Parks Scheme to create world class apparel manufacturing facilities in the country to boost export of apparels. Mr. Sakthivel, President, Tiruppur Exporters’ Association (TEA) seized of this opportunity and conceived a project to establish an Apparel Park in between Avinashi and Perumanallur on NH 47 about 15 kms. from the center of Tiruppur town. The proposal was sent to the Ministry of Textiles, Government of India, New Delhi through the Government of Tamilnadu. The MoT, Gol approved the proposal in October 2002.
Immediately on getting the approval the TEA formulated a scheme and invited apparel exporters in the region to register with the Association for a plot in the proposed Apparel Park. There was overwhelming response and about 50 apparel exporters registered with the Association and deposited the initial contribution of Rs.15.25 lakhs fixed for a standard plot of about 2.00 acres. There was a request from about 10 members for allotment of plots double the size of standard plots. In order to ensure that the Apparel Park Project was executed speedily and efficiently, TEA promoted a Special Purpose Vehicle, Netaji Apparel Park (NAP) and registered it as a Company under section 25 of Companies Act 1956. A Board of Directors was constituted to look after the day to day administration of the project.
NAP identified Eettiveerampalayam village as the ideal location for the project that complied with most of the parameters under the guidelines notified by the MoT. The location is ideal because:
By June 2003, more than 150 acres were acquired by NAP and in consultation with architects and civil engineers the layout of the Apparel Park was designed. The layout planned had the following features.
At the request NAP, the Government of Tamilnadu nominated the New Tiruppur Area Development Corporation as the Nodal Agency of the State Government and NAP as the Implementing Agency for the project. The MD, NTADCL and Joint Secretary (Exports), MoT, Gol, were appointed as Directors on the Board of Directors of NAP with the approval of the respective Government.
The Foundation Stone for the Park was laid by Sri Shah Nawaz Hussain, Hon’le Minister of Textiles, Government of India, New Delhi on 4th July 2003 in the presence of Sri.Se.B.Mahaopatra I.A.S., secretary, MoT, GoI and Sri.Virender Uppal, Chairman, AEPC.
Funds for infrastructure development
The total cost of infrastructure development, including captive power generation plant and distribution system was estimated around Rs.17.62 crores, of which 75% was given by Ministry of Textiles as grant-in-aid and the balance 25% from members of NAP.
Financial Assistance for Manufacturing Units
NAP negotiated with leading banks in Tiruppur for a preferential package of term loan and working capital facilities for the units set up in the Apparel Park. The State Bank of India. Overseas Branch, Tiruppur came forward to extend credit facilities to the members of NAP for building, plant and machinery at a very attractive rate of interest of 9.50% p.a. Other banks also adopted a similar flexible attitude, With the extension of TUF Scheme by the Ministry of Textiles, and increase in eligibility limit investment on land and building from 25% to 50% to apparel units by the MoT in response to the representations made by TEA and NAP the units in the Park were receiving financial assistance from banks at more or less at ‘LIBOR’ rates. This was a welcome and much awaited development in creating a level playing field for the exporters in the global scenario. NAP also decided to execute the project on a fast tract mode and completed in January 2005, In 11 months time.
“The Dream of an Apparel Park of International Standard in India was realized with the opening of the park on 10th January 2005 by Sri.P.Chidambaram, Hon’ble Minister of Minister of Finance, GOI Presided over by Sri. Shanker Sinh Vaghela Hon’ble Minister of Textiles, Government of India, New Delhi at New Tiruppur”. Tiruppur is today on the threshold of a new era of growth.
NETHAJI APPAREL PARK
In a sprawling 170 acres with a built-up area of upwards of 2.00 million sqft. at an investment of more than Rs.1000 million was completed in a record time of 18 months.
NETHAJI APPAREL PARK is THE FIRST AND ONLY APPAREL PARK IN THE WHOLE COUNTRY, that has been successfully promoted and operated by the Apparel Industry under the erstwhile Apparel Parks for Export Scheme of the Ministry of Textiles. The Park was the inspiration for many textile clusters in the country to promote Textile Parks under the SITP as every day textile enterpresneurs and representatives of textile industry associations all over the country are visiting the Park, holding discussions with the Park Management on the methodology adopted for promoting, successfully executing and running the Park. While designing the Apparel Park, NAP made an in depth study of the standards of production facilities in EU and USA and metriculosly designed the park and planned the production facilities to match the high standards in those countries. The basic objective was to create a world class knitwear manufacturing facility and make it a show piece not only to the buyers around the world but also knitwear manufacturers in other parts of the country.
The manufacturing facilities provided in a standard plot of 1.8 acres are
Infrastructure and common facilities:-
NAP Created infrastructure and common facilities of International Standards and conscious about the fact that large number of foreign buyers would be visiting the Park throughout the year. The moment a buyer enters the Park they should be impressed that the park is of International standards.
Therefore, it was decided and constructed an imposing entrance to the Park with lot of greenery and water fountain, and to keep a totally dust free and lean atmosphere, the roads were laid very wide, on both sides of the roads there are pedestrian walkways paved with paver blocks to facilitate the smooth and accident free walking of more than 15000 workers who are now employed in the Park and the remaining area covered with greenery.
Nap took similar care and great deal of planning for other infrastructure facilities for example high quality infrastructure for the entire electricity distribution system was with underground cables and costly internal dry type transformers.
The cost of infrastructure facilities and factory building is Rs.83.75:-
Common Facilities available:-
TNEB SUB STATION 110/11KV – BULK POWER SUPPLY FROM TNEB GRID
Tamilnadu Electricity Board established New 110/11 KV sub station at Nethaji Apparel Park in order to have sufficient supply of electricity to the consumers in the surrounding areas and to improve transmission network for windmill generation. Nethaji Apparel Park provided Land at free of cost for the construction of sub station inside the Park. TNEB sub-station was commissioned on 18th January 2008.
Sewage Treatment Plant
Sewage Treatment Process is mainly based on the principle of “FLUIDISED ATTACHED GROWTH PROCESS”.
Treated water is effectively used for Gardening / Landscaping and also for maintaining the huge areas of greenery and at the same time make use of treated effluent.
Nethaji Apparel Park is maintaining a high standard of Social infrastructure facilities, dust free environment and totally clean atmosphere inside the park. To achieve this, lot of greeneries are provided, landscaping of green belt with chain link fencing and tree planting protected by barricades.
Since the Park is not having wet processing activities like dying, printing etc., there is no need for common effluent treatment plant. There are adequate provisions for sewage treatment plant in the project. Rain water harvesting system has been provided in all buildings. The surface flow of rain water from roads and other open areas are collected in rain water ponds.
A Green Belt was developed in the Park making use of the vacant area adjoining the roads, near the rain water harvesting pond, Sewage treatment plant sites etc. The Green Belt is having lawns, flowering bushes and plants. Units are also having landscaping inside their plaots to add greenery to the Park.
Units are provided 4 phone lines with free intercom facilities and the broad band service with 4 MBPS for providing better bandwidth, and also installed Bandwidth Management Software.
WORKING WOMEN’S HOSTEL
Tiruppur industry has more than two lakhs women workforce of which about 65% is in requirement of proper accommodation / residential / hostel facilities. As of now, they have accommodated themselves in rented houses, private mansions / guest houses, paying guest accommodation etc., however with the risk of security, safety and privacy.
Tamilnadu Water Investment Company Ltd (TWICL) proposed to create hostel facilities in different location in Tiruppur and as a first step facilitate Working women’s hostel at Nethaji Apparel Park for staying woman workforce at NAP is being constructed and ready by 2009. Nethaji Apparel Park was offered 75 cents of Land on a 30 year lease basis for the purposes of creation of a working women’s hostel under the IIUS Scheme with all the facilities for the accommodation of 1000 inmates.
PRODUCTION AND EXPORTS
NAP units currently contributes more than 1/10 of Tiruppur total exports of Rs. 9950 crores achieved in 2007-08 through 53 units and are providing employment to more than 15000 workers. Enough provision has been made in the plan to increase the build up area three times at any point of time in future so that production and exports can be trebled in a decade or so.
[ * Courtesy : - Nethaji Apparel Park ]