The Hindu Business Line : `Hi-tech weaving parks will enhance capacity of textiles'

The central thrust of `corporate governance' is building transparency in transactions, business ethics, collectivism and full use of the infrastructure facilities with scope of adopting developmental schemes.

The enhanced `corporate governance' will not only improve the allocation of real investment resources (physical, human and technological capital) but also greatly reduce the wastage of these resources, according to Mr M.S. Mathivanan, Chairman of the Cauvery Hi-tech Weaving Park, Komarapalayam.

Making a presentation on `Corporate governance - Enhancing productivity in a global era' at the recently concluded 14th World Productivity Congress in China's Shenyang, Mr Mathivanan said the hi-tech weaving park projects were initiated by the Government to enhance the capacity of the country's textile sector and the quality of its production by enabling independent weavers to consolidate under the hi-tech parks.

The parks were promoted to enable the weavers to take advantage of tariff benefits, removal of trade barriers, bringing in latest technology in machineries and knowledge transfer which will in turn result in increased productivity and an international marketing platform. As individual textile enterprise cannot bring in the much-needed upgradation, the formation of such clusters under hi-tech weaving parks can bring in a culture of corporate governance by defining properly the man, machine, technology and resources utilisation.

The direct benefits from hi-tech weaving parks are technology upgradation in machinery and accessories (modern benchmarked machinery at affordable rates), institutional credit at concessional rates, financial subsidy and loan funds, improved working conditions and development of labour skills.

The Cauvery Hi-Tech Weaving Park, for example, with whose promotion he was involved, depicts a clear picture for the development of good corporate governance for achieving sustained productivity and long-term development, said Mr Mathivanan adding that the importance of corporate governance would continue to grow as the needs of corporations for `extra-firm' finance were too growing at a time when the traditional sources of finance to supply their needs have diminished greatly.

Productivity growth

The global competition, according to him, has put the spotlight on labour costs and those who manage them, with pressures to produce higher value output to justify initial investment. The productivity growth can have positive impact on poverty reduction through two ways - rising wages and incomes reducing poverty levels and productivity gains moderating the rate of increase in prices.

Mr Mathivanan who is also Chairman of the SSM group of Institutions in Tamil Nadu, was awarded the world productivity council's `fellowship' by Dr George Smith, President of the World Network of Productivity Organisations at the Congress.

More Stories on : Textiles | Infrastructure | Corporate Governance | Tamil Nadu

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