In an innovative move, a group of 35 textile exporters and suppliers of apparels in domestic market from Tirupur knitwear cluster have joined hands to form a confederation to build ‘brands’ for adding value to products without compromising on cost competitiveness. Named ‘Hydra Confedra,’ it will operate on the principle of consortium focusing on three ‘Cs’ – compliances, competitiveness, and compatibilities.
R. Girish, chief executive officer of the confederation, told The Hindu that the confederation had identified ‘strategic partners’ to obtain technical assistance to improve each of the three ‘Cs.’
“Services of renowned business information provider Dun and Bradstreet and also Inter Tek Testing Services will be used to improve compliances with focus on economic and social governance compliances,” he said.
Under compatibility segment, the confederation has roped in a Bangalore-based firm to help member units to improve Information Technology-enabled and Enterprise Resource Planning (ERP) aspects.
For improving competence in production and marketing, a firm in the State has been identified.
To bring down the production costs, the member units are going for bulk purchase of raw materials right from yarn, fabric to accessories, he said.
The confederation has started exploring possibilities of tie-ups with importers associations in Norway, Sweden, Poland and few more countries so as to penetrate into niche-market segments other than traditional markets in that region.
Mr. Girish pointed out that with FDI in multi-brand retail allowed in the country with a clause that 30 per cent of the procurement should be from domestic SMEs (small and medium enterprises), the building of brands by the confederation would help the member units to cater to the big multi-national companies from within the country itself.
Member units to go in for bulk purchase of raw materials Tie-up planned with importer associations
Member units to go in for bulk purchase of raw materials
Tie-up planned with importer associations