The Micro, Small, and Medium-scale Enterprises (MSMEs) sector in Coimbatore and Tiruppur districts has exceeded the investment targets set for the upcoming Global Investors Meet (GIM) in Chennai next year.
These two districts had a combined target of attracting 26,000 crore investment from the MSME sector. In Coimbatore, 191 units have committed to investing nearly 6,100 crore, which is expected to generate around 19,100 new jobs. The investments will span various emerging sectors such as electric vehicles, automobile components, defence, and aerospace.
Additionally, three industrial parks in the region are scheduled to commence operations soon, with MSME units investing amounts ranging from ₹2 crore to 150 crore in each of these parks.
The President of the Coimbatore District Small Industries Association, V. Thirugnanam, explained that signing Memorandums of Understanding (MoUs) during the Global Investors Meet would expedite the requisite approvals for these investments.
Despite the current economic slowdown, Thirugnanam expressed optimism that the situation would improve, encouraging industries to proceed with their investment plans. By leveraging the GIM platform, investors expect to receive necessary approval without unnecessary delays.
Meanwhile, in Tiruppur district, 270 MSMEs are projected to invest a total of 7,666 crore, creating employment opportunities for around 14,650 individuals. These investments vary from 80 lakh to ₹50 crore per unit and are primarily aimed at expanding existing facilities, enhancing renewable energy capabilities, or establishing new industries. The sectors targeted for investment in Tiruppur encompass a broad range including oil mills, rice mills, renewable energy, healthcare, coir, plastic, food, and garments.
However, the President of the Tiruppur Exporters and Manufacturers Association, M.P. Muthurathinam, expressed concerns regarding the garment sector. He stated that approximately 70% of garment units in the MSME sector in Tiruppur were experiencing significant stress due to a decline in orders.
Many larger-scale units are even considering relocation to other states. Muthurathinam attributed this crisis to the influx of imports from Bangladesh and the prevailing global geopolitical situation. As a result, the investments planned for Tiruppur district may predominantly focus on sectors other than garments.
One of the leading home textile manufacturers in Tiruppur also shed light on the textile industry slowdown, which has persisted for over a year. As a response, textile units in Tiruppur are exploring alternative fibres; however, they remain cautious and are carefully assessing the potential risks before committing to new investments. Consequently, substantial textile and garment investments in the district may not materialize immediately.
