• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

G. Gurumurthy

Coimbatore , Aug. 29

TIRUPUR-based knitted cloth producers engaged in job work have revised their hire charges for fabrication.

The new rates, effective September 1, will overall leave the job work charges going up by 7 to 10 per cent higher than the prevailing rates charged by the Tirupur knitters. But, the revised rates are still lower than that were originally fixed during the last revision effected three years ago, i.e., in 1999.

The revised rates were agreed upon at a joint meeting of the members of the two knitted cloth manufacturers' fora - KnitCloth Manufacturers Association (KnitCMA) and the South India Imported Machine Knitters Association (SIIKMA) - held at Tirupur.

The new rates, according to Mr S.N. Mylsamy, Secretary of SIIKMA, would cover all the popular knit-fabric varieties in demand such as the plain single jersey, plain rib, terry and inter-lock. Knitters have evolved separate hire charges for the fabrics knitted out of the indigenous knitting machines as well as those produced from the imported knitting machines and the revision will be applicable for both indigenous knitting machines-run units and the units equipped with imported machines.

Mr Mylsamy told Business Line that the change in the hire charges became necessary in view of the hike in the cost of power, essential inputs such as the needles, lubricants and labour that go into the knitted cloth manufacture.

He maintained that many in the knitted fabrication industry tended to ignore the official hire-charges fixed by the industrial associations in 1999 and offered to accept orders at lower rates.

Over the past two years, the knit-fabrication sector has gone in for installing more number of imported machines and an estimated 4,500/5,000 knitting machines have landed at Tirupur.

But this time around, the two associations will endeavour to see that the new rates evolved under their banner would be adopted without any dilution. Mr Mylsamy felt that the low dosage of increase in hire charges was opted considering the high competitive environment, though this would further prolong the pay-back period for the units which had invested on imported knitting machines at higher cost.

As per the revised rates, knitters would have to wait minimum 6 to 7 years to get back the invested cost on machinery. En estimated 2,500 job working knitted cloth producers are operating in Tirupur.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Windmill industry awaits incentives for textile units

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line