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G. Gurumurthy

COIMBATORE, Nov. 13

NATIONAL Small Industries Corporation Ltd (NSIC), the Central Government's SSI supportive body, has drawn up a proposal to promote a raw material consortium for Tirupur-based textile manufacturers.

The proposed consortium, which would facilitate bulk buying of raw material consumed by Tirupur-based small and medium textile producers at competitive rates by the consortium companies, would be promoted in collaboration with the Textiles Committee of the Ministry of Textiles.

The committee is the nodal agency for the Tirupur knitwear cluster development programme being implemented by the Ministry.

NSIC sources told Business Line that at least 12 knitwear companies have evinced interest in the consortium arrangement.

The corporation hopes to rope in a few more knitwear producers before a physical shape to the raw material consortium is given.

Floating of such a consortium would be a step ahead for the raw material credit services currently being offered by NSIC to the SSI sector.

The consortium could be involved in procuring fibre/yarn, fabric and dyes and chemicals, the key raw materials used by knitwear producers.

NSIC is expected to offer revolving credit to consortium participants against bank guarantees for procuring their raw materials.

"We are trying to map the raw material credit requirements of Tirupur companies so that the full cost advantage that may accrue in the consortium arrangement could be derived by the textile SMEs," the NSIC sources said.

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