The Micro, Small and Medium-scale Enterprises (MSMEs) sector in Coimbatore and Tiruppur districts has surpassed the investment targets for the Global Investors Meet (GIM) to be held in Chennai in January next year.
The two districts have a target of ₹6,000 crore investment each from the MSME sector.
In Coimbatore district, 191 units will invest nearly ₹6,100 crore, generating 19,100 new jobs. The investments will be in an array of emerging sectors, including electric vehicles, automobile components, Defence, and aero space. Three industrial parks will take off shortly and MSME units will invest ₹2 crore to ₹150 crore each in these parks.
President of Coimbatore District Small Industries Association V. Thirugnanam said when industries signed MoUs at the Global Investors Meet, they would get the mandatory approvals easily. “There is slowdown now. But we hope the situation will improve and plan investments. By signing MoU for these investments at GIM, we can get the required approvals without delay,” he said.
Tiruppur district will have 270 MSMEs investing ₹7,666 crore and generating employment for 14,650 people. The units are investing ₹80 lakh to ₹50 crore each and these are for expansion of existing facilities, increasing renewable energy capacities, or setting up new industries.
The investments will be in a wide range of sectors - oil mills, rice mills, renewable energy, healthcare, coir, plastic, food, and garments.
According to president of Tirupur Exporters and Manufacturers Association M.P. Muthurathinam, almost 70% of garment units in the MSME sector in Tiruppur are under stress, with hardly any orders. A lot of units in the large-scale sector are shifting to other States. “We are facing unprecedented crisis because of huge imports from Bangladesh and the global geo political situation. The investments planned in Tiruppur district may be in sectors other than garments,” he said.
One of the major home textile manufacturers in Tiruppur said the slowdown in textile industry for more than a year was forcing textile units in Tiruppur to look at alternative fibres. However, they were still studying the potential and risks and were not ready for new investments. So, major textile and garment investments in the district may not happen immediately.
