To modernize production capabilities across decentralized manufacturing hubs, Tamil Nadu inaugurated two new mini textile parks at Kodangipatti and Uppidamangalam in Karur district. Under the state government’s Mini Textile Park Scheme, which funds up to 50 per cent of eligible project costs capped at Rs 2.50 crore per project, the initiative provides micro, small, and medium enterprises (MSMEs) with shared effluent management, warehousing, and advanced weaving utilities. The state has sanctioned 19 mini textile parks overall, including eight allocated exclusively to Karur to transition local manufacturers from fragmented job-work operations to consolidated, high-throughput exporters.

Direct export access counters rising supply chain overheads

Developing common manufacturing infrastructure addresses critical operational bottlenecks, including rising energy tariffs, capital scarcity, and strict international compliance standards. Complementing the park launches, a Reverse Buyer-Seller Meet organized by FaMeTN and SICCI in Karur yielded 53 Memorandums of Understanding (MoUs) worth Rs 12 crore with 25 international buyers. Providing standardized industrial amenities and direct buyer linkage allows smaller handloom and powerloom operators to cut unit overheads and fulfill high-volume global retail orders, states M Vijay Balaji, Minister for Handlooms, Textiles and Khadi.

Karur home textile industrial cluster framework

Renowned historically for handloom craftsmanship, Karur has evolved into India's premier home textile manufacturing hub, exporting over Rs 6,000 crore annually in kitchen linens, bedspreads, and soft furnishings to Europe and North America. Supported by state infrastructure subsidies, the cluster aims to achieve 15 per cent annual export growth through modern dyeing technologies and sustainable manufacturing practices.