SIMA is a trailblazer in social responsibility initiatives: Dr K Selvaraju

In this interview with Rakesh Rao, Dr K Selvaraju, Secretary General of SIMA, talks about Coimbatore’s enduring importance, SIMA’s pioneering role in industry reforms and evolving changes shaping the textile industry’s future.

Coimbatore has long been the nerve centre of India’s textile industry, thanks to its favourable climate, early industrialisation, and strong entrepreneurial legacy. Playing a pivotal role in nurturing this ecosystem is The Southern India Mills’ Association (SIMA), which has championed the interests of textile mills since 1933. In this insightful conversation, Dr K Selvaraju, Secretary General of SIMA, speaks with Rakesh Rao about Coimbatore’s enduring importance, SIMA’s pioneering role in industry reforms and evolving changes shaping the textile industry’s future.

Could you begin by giving us an overview of Coimbatore and its role in the growth of India’s textile industry?
Coimbatore, often referred to as the “Manchester of South India,” has played a seminal role in the development of India’s textile industry. Historically, it was a major cotton-growing region, which attracted early British interest in establishing spinning mills. One of the earliest mills, Stanes Mills—later acquired by the National Textile Corporation—was established in 1888 by Sir Robert Stanes. The climate of Coimbatore, characterised by moderate temperatures and optimal humidity for most of the year, made it especially conducive for spinning fine yarns, at a time when artificial humidification systems were not yet available.

This natural advantage allowed Coimbatore to distinguish itself from northern regions, which largely produced coarser counts of yarn. The region soon became known for producing superfine and premium-quality yarns. The availability of steam and hydroelectric power further contributed to the region’s industrial attractiveness, leading to the establishment of major mills by pioneering families such as the Lakshmi Group and the PSG Group.

How did SIMA come into existence and what role has it played in shaping the textile industry?

SIMA was founded in 1933 under the leadership of Sir R K Shanmukham Chetty, who later became independent India’s first Finance Minister. SIMA was established not only to represent the interests of mills in policy advocacy but also to safeguard the welfare of workers.

In fact, SIMA was a forerunner in social responsibility. As early as 1937, it negotiated agreements with trade unions that included progressive labour terms such as an eight-hour workday, 26 working days a month, and safety codes for women workers. This was decades before similar regulations were institutionalised nationwide. SIMA-supported mills also pioneered the creation of schools, hospitals, and housing facilities for their workers—long before the concept of Corporate Social Responsibility (CSR) was formally introduced.

Over the decades, SIMA has contributed significantly to labour law reforms, including agreements that predated statutory provisions for bonuses and medical leave. The Association’s model industrial practices were emulated across the country.

SIMA is committed to supporting the growth of the trade, farmers and the nation, aligning with the objectives set out when the Association was established in 1933 itself.

What is Coimbatore’s current status in India’s textile ecosystem?
Despite the closure of some legacy mills in the 1990s due to policy-driven disruptions and increased competition, Coimbatore has remained resilient. Today, Coimbatore and the nearby Tiruppur region host more than 7.5 million spindles, over 250,000 rotors for open-end spinning, and more than 300,000 power looms. About 70 per cent of India’s knitted garment production takes place in this region, in addition to a significant volume of handloom activity.

Coimbatore is also home to Lakshmi Machine Works (LMW), which holds over 80 per cent of the domestic market share in spinning machinery manufacturing. Furthermore, approximately 70–75 per cent of all spinning accessories and components used across India are produced in Coimbatore’s MSME sector. Tamil Nadu houses over 2,200 spinning mills, with Coimbatore alone accounting for nearly 1,000. Tamil Nadu also produces 45 per cent of India’s total spun yarn output, consuming about 110–120 lakh bales of cotton annually.

Could you elaborate on SIMA’s role in supporting sustainable and inclusive growth?
SIMA has long been a leader in sustainability and inclusiveness. It has proactively supported handloom weavers by offering yarn at concessional or even no cost during times of crisis. The Association has also played a pivotal role during national emergencies and natural disasters.

Today, as sustainability becomes a global imperative, SIMA continues to advocate for environmentally responsible manufacturing. The Association was a key stakeholder in developing early frameworks for industrial engineering, job norms, and even supported committees such as the International Labour Organization (ILO) to standardise practices in textile manufacturing.

SIMA is part of Textile Industry Coalition (TiC) – a multi-stakeholder initiative in Tamil Nadu focused on strengthening the implementation of the Prevention of Sexual Harassment (PoSH) Act & promoting safer workplaces for women in the textile sector. TiC was launched by the Tamil Nadu government, convened by UN Women, supported by the European Union and global brands like H&M. 

What are some of the current challenges faced by Tamil Nadu’s textile sector?

While Tamil Nadu continues to lead in manufacturing and exports, it faces several challenges. The most pressing issue is the lack of cotton production within the state, which produces only 5 lakh bales despite consuming over 120 lakh bales annually. This makes mills heavily dependent on cotton from Gujarat, Maharashtra, and Telangana, increasing logistics costs.

Similarly, while Tamil Nadu consumes about 70 per cent of the viscose fibre produced in the country, there are no major MMF manufacturing plants in the state. Efforts are ongoing to attract such investments. SIMA has been lobbying for manufacturers to set up plants in Tamil Nadu to improve competitiveness.

Tamil Nadu remains weak in downstream processing, increasing dependency on clusters in Maharashtra, Gujarat and Rajasthan to handle much of the state’s yarn processing. The decline in mill utilisation due to labour shortage remains a significant concern. Despite the deployment of migrant labour, the issue continues to persist without a solution in the near future.

How has the government supported the industry in recent years?

The Tamil Nadu government has shown strong support for the textile sector. It has introduced a progressive textile policy and has committed to refining it further with input from SIMA’s core committee. Unlike some other states that focus on attracting new investment with high incentives, Tamil Nadu’s approach is more focused on sustaining existing capacities and promoting innovation.

The government provides free power up to 1,000 units for power loom units and 250 units for handloom units. It has also committed financial support for hiring international consultants to assist MSMEs in venturing into technical textiles and MMF-based products. A fund of INR 10 crore has been allocated, with each consultant eligible for up to Rs 50 lakh in support.

Is there a shift toward MMF and technical textiles in Tamil Nadu?

Yes, there is a significant shift underway. With commodity cotton-based spinning facing stiff competition from other states and countries, SIMA has been actively encouraging mills to diversify into manmade fibres (MMF) and technical textiles.

Approximately 200,000 looms have already moved into synthetic blends, especially viscose. Tirupur, a key garment hub, has set a target to shift 20–25 per cent of its production to MMF-based apparel. The government’s collaboration with third-party knowledge firms has served as a valuable guide during this transition, providing expert studies and policy recommendations.

Traditionally, Tamil Nadu has had a strong base in technical textiles, particularly in areas such as home textiles (e.g., kitchen linen from Karur), protective clothing, and medical textiles. The region also played a pivotal role during the COVID-19 pandemic, helping India to quickly become the second-largest manufacturer of N95 masks and PPE kits globally, next only to China.

Could you share your thoughts on Texfair and how it has evolved?

Texfair was conceptualised by SIMA’s former chairman, the late Mr Manikam Ramaswami, and launched in 2001. The core idea was to create a cost-effective, high-quality platform for MSMEs to showcase their innovations. Unlike large international fairs where small exhibitors get limited visibility, Texfair was designed to democratise access to markets.

Over the years, it has grown into a major biennial event, attracting close to 100,000 visitors. Exhibitors use it as a launchpad for new technologies and product lines, much like larger global trade fairs. Many now-successful companies had their initial breakthroughs at Texfair.

Texfair also contributes to import substitution by encouraging domestic innovation. It has now achieved global stature, drawing participants and visitors from countries including Bangladesh, Sri Lanka, Indonesia, Vietnam, and even China.

What makes Coimbatore and Tamil Nadu uniquely positioned for future growth?

Tamil Nadu has a skilled talent pool, supported by numerous engineering colleges, polytechnics, and textile institutes. The state’s industrial culture is defined by cost-efficiency, innovation, and resilience, especially within the MSME sector.

Power policies in Tamil Nadu also give it a unique edge. While grid power costs are relatively high, the state has the best framework for wind and solar energy integration, enabling mills to remain globally competitive.

Furthermore, the Western Tamil Nadu textile belt—covering 10 districts including Coimbatore, Salem, and Erode—houses about 60–70 per cent of the state’s manufacturing capacity, making it a formidable cluster for integrated textile operations. The region has multiple textile clusters namely, Coimbatore (spinning), Tirupur (knitwear), Erode (woven fabrics), Karur (home textiles), thereby creating natural synergies. Tamil Nadu is a leader in adopting green energy (wind and solar) in spinning and processing units. Active initiatives in recycling, organic cotton use, and zero-liquid discharge processing add to long-term competitiveness. PM-MITRA Park in Virudhunagar is expected to further enhance end-to-end integration and draw large-scale investment.