Textile mills in Tamil Nadu are reviving in the last few months and are making capital investments.
| Photo Credit: File Photo by Siva Saravanan S.
Following one of the worst crisis for the last four years that the textile industry in Tamil Nadu has faced, demand has revived for cotton and blended yarns in the last few months, triggering investments in the mills.To quote a few instances, KPR Mills informed the Bombay Stock Exchange on August 10 that it is investing ₹260 crore to modernise and expand two of its spinning mills at Karumathampatti in Coimbatore district and these will be operational by the end of the third and fourth quarters of this financial year; the Pallava Group based out of Pallipalayam is investing for modernisation and capacity addition; A medium-scale textile mill at Kannampalayam area is adding capacities by sourcing second hand machinery.“If we do not reinvest and if there is no capital investment, we will lose out. With modernisation, the mills will get better productivity, improve on automation, and get a cost advantage,” said Durai Palanisamy, chairman of the Southern India Mills Association.Export orders have revived for the last few months with global demand for yarn picking up. China is the main buyer of yarn now. “If the market had been good earlier, the mills would have invested earlier. Now, since the market started looking up, they are using the liquidity to modernise the mills,” said a mill owner.The domestic market is also looking up. However, the mill owners express concern over the rising cotton prices. “It is eroding the profitability of the mills as cotton prices are on the rise almost daily,” said Siddharth, another mill owner.“The mills faced one of the longest crisis period since 2022. Several mills had shut down or reduced production in Tamil Nadu in the last four years. Those continuing operations now and those who had covered cotton earlier are benefitting more,” said an industry source. Published - September 01, 2026 07:24 pm IST
