Dr. A Sakthivel is a towering figure in the Indian textile industry and the visionary founder of the Tiruppur Exporters Association (TEA). With a remarkable career spanning several decades,
Dr. Sakthivel has been instrumental in transforming Tiruppur from a modest town in Tamil Nadu into a global hub for knitwear exports. His leadership and pioneering efforts have not only revolutionised the local apparel industry but also contributed significantly to India’s position as a leading exporter in the global textile market.
As a four-time chairman of the Apparel Export Promotion Council (AEPC) and its Southern Region Head, Dr. Sakthivel has played a critical role in shaping India’s apparel export policies. His deep understanding of the global textile landscape and his ability to anticipate market trends have positioned Indian textile exports for sustained growth. Through tireless advocacy and policy interventions, he has ensured that Indian exporters receive the necessary support to compete effectively in international markets.
One of Dr. Sakthivel’s most notable achievements is his long-standing tenure as president of the Tiruppur Exporters’ Association since its inception in 1990. Under his guidance, Tiruppur’s exports have witnessed phenomenal growth. From a modest turnover of ₹15 crore in 1984, the town’s export value surged to a staggering ₹34,000 crore by 2024. This meteoric rise can be attributed to his relentless pursuit of excellence, emphasis on sustainability, and strategic initiatives aimed at modernising the industry.
A champion of innovation and sustainability, Dr. Sakthivel has spearheaded numerous initiatives to ensure that Tiruppur remains competitive in an increasingly environmentally conscious global market. His contributions to the textile sector have not gone unnoticed. Dr. Sakthivel was conferred with the prestigious Padma Shri award, one of India’s highest civilian honours, in recognition of his unparalleled contributions to the industry.
Recently, Dr. Sakthivel shared his insights and experiences in an exclusive interaction with Fibre2Fashion.
The following are the excerpts from this enlightening conversation with Dr. A Sakthivel.
Q: Tiruppur has evolved significantly over the years. How do foresee its growth trajectory and the major challenges going forward?
A: Yes, you are right; Tiruppur has indeed made remarkable progress. Over the past six months or so, our performance has been notably better than the last year. Our growth rate has reached nearly 15 to 18 per cent. Last year, we achieved a turnover of approximately ₹35,000 crore. This year, we are optimistic about touching ₹40,000 crore.
One crucial factor that can significantly influence our growth trajectory going forward is the Free Trade Agreements (FTA) with the UK and Europe. Given the current circumstances in Bangladesh, an FTA with UK would be particularly beneficial for us. Additionally, there is ongoing discussion about potential negotiations with the European Union for an FTA. If both agreements come to fruition, Tiruppur’s growth rate may not just remain at 15 per cent but could possibly soar to 30 to 40 per cent.
However, there are some challenges too! The biggest issue is shortage of manpower. Even if 60,000 workers were to arrive in Tiruppur tomorrow, we could absorb them immediately. The problem intensifies when bringing workers from other states because we need to provide them with accommodation. Constructing hostels is expensive and seen as a “dead investment”—for instance, building a hostel for 1,500 women would cost around ₹35 crore without yielding direct financial returns. We are thus requesting the Government to provide a 50 per cent grant for hostel construction. This support would help us attract more workers and strengthen our production capabilities.
Currently, we are receiving plenty of orders, but due to the workforce shortage, we are sometimes forced to decline them.
Q: Sustainability has been a strong focus for Tiruppur. Can you elaborate on the various initiatives that have earned Tiruppur the title of ‘Green Tiruppur’?
A: Sustainability is indeed a significant strength of Tiruppur. We have been at the forefront of environmental initiatives. We achieved zero liquid discharge about ten years ago and now recycle approximately 23,000 crore litres of water daily, reusing around 96 per cent of it.
Additionally, we save around 12 metric tonnes of carbon dioxide emissions.
In terms of energy, we have installed wind energy and solar energy in a big way, amounting to a total of 2,250 megawatts. Interestingly, the Tiruppur industry itself consumes only 250 megawatts, and the remaining 2,000 megawatts is supplied to the Tamil Nadu Electricity Board.
Most of our factories are green-certified, and we diligently follow the EIG (Environmental Impact Guidelines) norms. Even in dyeing, we avoid chemical dyes and use only the approved, sustainable alternatives. Even for accessories like zippers, buttons, and fasteners, we ensure compliance with the global standards.
To further promote awareness, I have conducted seven assemblies across India through our sectoral council. We collaborated with Bluesign from Switzerland and even organised a six-week online course for 100 participants across India. We plan to introduce more such courses to maintain our leadership in sustainability.
We are also negotiating with Bluesign for their certification, which would cover the entire process—from raw materials to finished products. This certification would be linked to a digital product passport, allowing customers to scan labels and access comprehensive product information.
Q: Tiruppur has historically been strong in cotton-based products. However, man-made fibres (MMF) are gaining prominence and are seen as the future. How is Tiruppur adapting to this shift?
A. We are well aware of the growing importance of MMF. About four years ago, during my tenure as chairman of the Apparel Export Promotion Council (AEPC), I initiated efforts to promote MMF. We even developed a comprehensive book detailing the HS codes, garment designs, and fabric sourcing information, which we submitted to the Government.
Our recent trade fairs, including the India Knit Fair (IKF), have prominently showcased MMF-based garments. In the last fair, 75 per cent of exhibitors displayed MMF garments, which impressed the buyers immensely.
However, the primary challenge lies in sourcing high-quality MMF fabrics. Currently, we rely heavily on imports. We have urged the Government to facilitate joint ventures between PM MITRA Parks and companies from Taiwan and South Korea, which excel in MMF fabric production. Although India is the top producer of MMF fibre and yarn, we lag in fabric production.
We have also approached major players like Reliance and Aditya Birla, requesting them to develop world-class MMF fabrics, especially for sportswear. Additionally, we have formed a dedicated committee within the TEA and hired a consultant to work on MMF initiatives.
Globally, 80 per cent of garments are MMF-based, while only 20 per cent are cotton. In India, the ratio is reversed — 80 per cent cotton and 20 per cent MMF. The MMF market is worth approximately $500 billion. To remain competitive, we aim to achieve a balanced 50-50 production ratio between cotton and MMF garments.
Q: There has been much discussion about ‘Bangladesh Plus One’ following the earlier ‘China Plus One’ strategy. India has struggled to capitalise on such opportunities. What are your thoughts on this?
A: The key factor again here is FTAs. Bangladesh enjoys an 11 per cent price advantage due to duty exemptions, which makes it difficult for buyers to shift to India. This advantage is substantial and often outweighs other considerations.
Therefore, we are urging the Government to expedite FTAs with the UK and Europe. These agreements are essential for levelling the playing field. Additionally, there might be new opportunities for us in the US as well, especially with tariffs being imposed on China now, which has a very strong presence in the US market.
Q: Tiruppur is predominantly composed of Micro, Small, and Medium Enterprises (MSMEs). How would the recent Union Budget impact the MSMEs in Tiruppur?
A: The Union Budget 2025-26 is favourable for the apparel manufacturers and exporters. It includes increased turnover limits and eased bank loan processes, which are significant benefits for us.
Q: Bharat Tex 2025 is just around the corner, and Tiruppur is expected to have a significant presence. What are your expectations?
A: Tiruppur is participating in a big way at Bharat Tex. We have secured a knitwear zone in Hall 4 upstairs, where all knitwear exporters are grouped together. This arrangement was our request, as it was missing in the previous edition.
Around 40 exporters from Tiruppur will be showcasing their products at Bharat Tex 2025. We are anticipating a strong response from the buyers and other stakeholders. It is a great opportunity to showcase our capabilities and innovations.
To wind up, I would like to underline, Tiruppur stands at the cusp of significant growth and transformation. While there are challenges, the region’s strong focus on sustainability, innovation, and strategic initiatives makes us well-positioned to seize emerging opportunities in the global textile market. But continued Government support and proactive industry efforts will be crucial in maintaining Tiruppur’s status as a leading textile hub.
Published on: 12th February 2025
Source: Fibre 2 Fashion
