The CII will use the report to seek sanction of financial assistance under the cluster development programme.
The common facility centre is part of an initiative of the CII, in association with the Karur textile industry to promote a world class apparel cluster in the town.
A preliminary proposal on setting up a common facility centre in Karur had been submitted to the Centre during interactions with the Union Ministers Nirmala Sitharaman, Kalraj Mishra, and Santosh Kumar Gangwar in January, P. Sudhakar, Chairman, CII, Karur, told The Hindu.
Grant Thorton, a consultancy firm engaged to study the gaps and future prospects of Karur textile industry, by the CII and the textile industry, would submit the detailed project report for the common facility centre.
The report would be submitted to the Centre for sanction of grant under the Cluster Development Programme of the MSME Ministry. The CII expects a grant of about Rs. 15 crore for the facility. The facility would have expensive machinery, which the member units cannot afford to acquire individually, a design studio, product testing, and other facilities.
The site for the facility had been identified at the Textile Park in Karur, Sudhakar said. The apparel cluster would be promoted through a special purpose vehicle called Karur Cluster Services Pvt. Ltd. About 20 members had been enrolled as members of the cluster so far and one of the member units would be an all-women unit.
Karur currently manufactures and exports textile products, mostly handloom made-ups, estimated at Rs. 4,000 crore. The initiative aims at bringing about a diversification by promoting an apparel cluster. Sudhakar said most of the manufacturing processes of the member units would be done at the cluster.
The cluster would take care of marketing, recruitment, and training of manpower, designing, and product testing.
The CII had unveiled a Vision 2023 to develop Karur as a mega integrated textile and apparel cluster with an annual turnover of Rs. 25,000 crore with the apparel sector alone accounting for Rs. 5,000 crore. (SH)
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