By admin       2018-03-27

Suresh Manoharan, Secretary, Perundurai SIPCOT Textile Processors’ Association, said in processing, the challenges faced by the industry are innumerable, on account of zero liquid discharge (ZLD). “We are now converting water pollution to air pollution,” he said in a lighter vein, before adding that the ZLD had pushed the cost of production northward by 20-25 per cent. “This condition (of ZLD) is imposed only in western Tamil Nadu. Further, the processing sector is capital intensive, and the margins – practically nil.” S Dhananjayan, senior auditor and advisor to Tirupur Exporters’ Association, said the knitwear cluster had to conform with various compliances such as ZLD and social compliance, which, in turn, resulted in a 10-15 per cent rise in production cost, making the operations unviable. “After the roll-out of GST, and with the government extending some cushion by way of ROSL (Rebate of State Levies), we thought the sector would get some breather. But post-GST, the sector has started to choke for want of working capital. This is expected to hit our bottom line by 4-5 per cent. It is a devastating blow

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