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Decoding the Tirupur phenomenon .


Date: 02-02-2010
Subject: Decoding the Tirupur phenomenon

Coimbatore, Feb. 1 What makes Tirupur, the hosiery and knitwear hub of the country, tick?

How did a town, in a span of about two decades, climb to the top of the hosiery/knitwear industry in the country, boasting of exports worth more than Rs 15,000 crore a year despite not having the advantages of cheap raw materials, skilled local manpower, inherited wealth or nature's bounty?

It has been a journey against odds that has fascinated the outside world and the secret of Tirupur's success was decoded by none other than one of the most successful garment manufacturers of the town, Mr N. Chandran, Managing Director, Eastman Exports Global Clothing Pvt Ltd.

Mr Chandran was speaking at the inauguration of the Business Line club at the Kathir School of Management of Kathir College of Engineering, Coimbatore. The event was presented by Karur Vysya Bank.

He said 50 per cent of the successful first generation entrepreneurs, like himself, were self-made and had come up on their own, without the advantage of any inherited wealth.

When an opportunity presents itself, the people of Tirupur grab it. When a +2 qualified person, seeking job, admits candidly that he has no experience, the factory owner in Tirupur would say ‘you are then qualified and I will take you!'. Even if someone comes with a graduate degree, he would be taken on board and both the recruits would be sent to do some basic work such as packing or delivery.

They would gain knowledge and experience gained over a period of time by which time they would be given charge of any new factory the owner decides to start.

Or if the latter wants to start a small unit with two machines , the owner may offer him job work.

Dominant culture

The culture of encouraging others is ingrained in the people of Tirupur as borne out by the fact that a significant percentage of the members of the Tirupur Exporters' Association (TEA) had started their lives as workers in garment units in Tirupur. And when they sit together at a meeting with their former bosses, there is no grudge or bruised egos. There is no fear of competitors snatching orders from others and the employers are ‘interlinked with each other'.

Mr Chandran advised the students not to wait for opportunities to come to them. It was very much there and it was up to the students to grab them. Mr Chandran said his company has grown to a $200-million company engaged only in garment exports, employing 25,000 people and is present in the entire gamut of textile business — from spinning to garment manufacturing and packing and logistics management and having its own warehouse in Europe.

Among those who spoke were Dr G. Doraiswamy, Principal, KCE, Ms Lavanya Kathir, Secretary, Kathir Institutions, Mr M. Balasubramanian, AGM, KVB, Coimbatore, and Mr R. Premanand, DRM (Circulation), The Hindu, Coimbatore.

Source : Business Line 


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