CHAPTER II SPINNING INDUSTRY - AN OVERVIEW

Transcription

1 CHAPTER II SPINNING INDUSTRY AN OVERVIEW

2 37 CHAPTER II SPINNING INDUSTRY AN OVERVIEW 2. INTRODUCTION The present chapter discusses the origin of spinning mills, growth of textile mills, growth of spinning mills composite mills in India, textile industries in India, production of yarn by spinning industries, spinning industry in India in general and spinning mills in Tamilnadu in particular. The growth of spinning mills, installed capacity, production of yarn by spinning mills, workers on rolls, closure of mills, consequences of closure of mills in India and the like are also discussed. India is one of the biggest producer and consumer of cotton in the world. With the introduction of cotton and better crop management practices, the average cotton yield has increased from 3 kg/hectare to kg/hectare 8. About 9% of cotton growing area is now occupied with cotton. Cottons show higher micro naire and lower level of trash than their noncounterparts 82. Cotton farmers grow more of long staple variety and hence there is shortage in availability of short staple and extra long staple cottons 83. Most of the imports are Extra Long Staple (ELS) and cotton from the U.S., Egypt, and West Africa 84. The quality of fibre produced is also of major concern. Indian cotton lacks the tenacity and colour of imported cotton varieties. The short fibre content is also high. The minimum support price set by the government was often found inadequate by the farmers as their cost of cultivation has gone high due to increase in input costs. Adding to this are the problems of irregular rainfall, SITRA 83 Sreenivasan. S & Venkatakrishnan. S, Cotton Fibre Quality Research Needs the Indian perspective, Model training course on cultivation of long staple cotton, December 22,

3 38 volatility in market and poor supply chain. Cotton farmers expect cotton to be exported as much as possible, whereas the spinning mills expect sufficient availability of cotton in the domestic market to meet cotton yarn demands and to keep yarn prices stable. About per cent of domestic cotton is consumed by the Indian spinning industry 8. The new spinning systems like airvortex system has stringent fibre requirements for trouble free processing and higher yarn quality. 2.2 TEXTILE INDUSTRY IN INDIA India is a traditional textile producing country with textiles in general, and cotton in particular, being major industries for the country. India is among the world s top producers of yarns and fabrics, and the export quality of its products is ever increasing. Textile Industry is one of the largest and oldest industries in India. Textile Industry in India is a selfreliant and independent industry and has great diversification and versatility. The textile industry can be broadly classified into two categories, the organized mill sector and the unorganized decentralized sector. The organized sector of the textile industry represents the mills. It could be a spinning mill or a composite mill. Composite mill is one where the spinning, weaving and processing facilities are carried out less than one roof. The decentralized sector is engaged mainly in the weaving activity, which makes it heavily dependent on the organized sector for their yarn requirements. This decentralized sector is comprised of the three major segments viz., power loom, handloom and hosiery. In addition to the above, there are readymade garments, khadi as well as carpet manufacturing units in the decentralized sector. The Indian Textile Industry has an overwhelming presence in the economic life of the country. 8

4 39 It is the second largest textile industry in the world after China. Apart from providing one of the basic necessities of life i.e. cloth, the textile industry contributes about 4 per cent to the country's industrial output and about 7 per cent to export earnings. After agriculture this industry provides employment to maximum number of people in India employing 3 million people. Besides, another million people are engaged in allied activities. India is the largest producer of Jute, the 2nd largest producer of Silk, the 3 rd largest producer of Cotton and Cellulosic Fibre / Yarn and th largest producer of Synthetic Fibers/Yarn. Textile Industry contributes around 4 per cent of GDP, 9 per cent of excise collections, 8 per cent of employment in industrial sector, and has per cent share in the country s export. The Industry contributes around 2 per cent share in the world trade of cotton yarn. India is the largest exporter of yarn in the international market and has a share of 2 per cent in world cotton yarn export market. India contributes for 2 per cent of the world s production of textile fibers and yarn. Indian textile industry is second largest after China, in terms of spindleage, and has share of 23 per cent of the world s spindle capacity. India has around per cent of global rotor capacity. The country has the highest loom capacity, including handlooms, and has a share of per cent in world loomage. The Apparel Industry is one of largest foreign revenue contributor and holds 2 per cent of the country s total export. The textile industry in India has a complex and varied structure. At one end of the spectrum in the traditional hand spun, hand woven sector located mostly in rural areas and on the other is the largely urban based sophisticated capital intensive, high speed machine sector. There is also a sprawled fast growing intermediate segment consisting of decentralized small scale power loom units dispersed mostly in rural and semi urban areas all over the country. Besides the garment industry has made phenomenal growth and has blazed a new in exports. Hosiery industry, which was earlier, confined to a few urban or semi urban centres are also making rapid progress and are spreadity in almost

5 4 all the states. The textile industry consists of composite mills, spinning mills, power loom, and hosiery industry. 2.3 COMPOSITE MILLS IN INDIA The composite mill sector has been stagnating almost since independence. The total number of composite mills which 27 in 9. Rise marginally to 29 by the year 977. After which it started declining to 2 in since then it has again marginally to 27 in 223. After which it started again declining to 98 in 223. The weaving capacity of the organized mills sector stagnated for a number of years, largely because the government policy permitted only a marginal expansion in the weaving capacity of the organized mill sector. Even with the removal of the restrictions on the creation of capacities, as mentioned in the textile policy of June 98, the weaving capacity has been consistently declining since Thus between 988 and 9992, the weaving capacity has declined nearly by 4 per cent. But after 9992, the weaving capacity has been inconsistently declining to 84 in 29 from the year 999 it started slowly growing up to 29 in 223. But after that year that weaving capacity was going up and down position to the year 29 (84) SPINNING MILLS IN INDIA Indian spinning industry is one of the biggest in the world with around million spindles. Installed capacity of rotors in the country is around 8 lakh. India has the second highest spindleage after China and contributes to about 2 per cent share in world trade of cotton yarn. Cotton continues to be the predominant fibre consumed by the textile industry. Cotton textiles contribute to over per cent of Indian textile exports. India is biggest yarn exporter in world and mainly exports to China, Korea Republic, Bangladesh, Egypt, Taiwan, Hong Kong, Turkey, Japan, Israel, European Union and Mauritius. India produces yarn of wide range of counts, which varies from two to 2s Ne 8 Minsitry of Textile Office, Mumbai.

6 4 and mainly dominated by cotton yarn. Other than per cent cotton yarn, cotton is spun with other fibres to produce blended yarns. Some of the major blended yarns exported from this country are polyester/cotton, cotton/viscose and acrylic/cotton 87. The spinning mills were set up primarily in the state of Tamil Nadu, Maharashtra, A.P, Haryana, Punjab U.P, and Gujarat. In Tamil Nadu itself, the management pattern of the spinning mills in 2 to 223 was much better growth than 99s. a majority of the spinning mills, about 87 per cent to the total, are still in the private sector while 9 per cent of the mills are in the co. operative sector and 4 percent in the public sector(central and state). Capacity wise, the private sector mills account for over about 83 per cent of the spindle capacity, 97 per cent of rotors, and per cent of Looms, while the remaining 7 per cent of the spindle capacity, 3 percent of the rotor capacity and 34 per cent of the Loom capacity are shared by the public and the cooperative sectors together Small Scale Spinning Mills In addition to the spinning and composite mills in the organized sector, of late, large number of small scale spinning mills (the spinning mills having or less spindles are termed as small scale spinning mills) have come up, Particularly in Tamil Nadu in and around Coimbatore. There were 3 SSI with an installed capacity of 4284 spindles and 348 rotors in 223. It has provided employment to 422 persons Cotton Textile Mills in India The textile industry has an important role to play both in the economic prosperity of the country and both in the supply of an essential commodity for the entire population. The textile industry in India includes both cotton and non cotton textiles (synthetic). 87 SIMA 88 ibid

7 42 The number of Cotton textile industries in India during 2 to 223 is shown in Table 2. TABLE 2. GROWTH OF COTTON TEXTILE MILLS IN INDIA Type Spinning Spinning Year SSI Non SSI Composite Total Table 2. shows that the number of textile cotton mills had increased from 2842 in 2 to 339 in 223 the spinning mills (Non SSI) in India have in from to in 2 to 77 in 223. While, there was stagnation in the growth of composite textile mills. The growth of cotton textile mills in India was caused by the growth of the spinning mills alone. The rate of increase in spinning mills from 2 was 34.4 per cent in SSI and 3. per cent in Non SSI. It indicates that there was a decrease in composite mills in India.

8 43 FIGURE 2. GROWTH OF COTTON TEXTILE MILLS IN INDIA Spinning Mills in Various States of India The spinning mills are spread out in states in India. They vary from state to state. The maximum of spinning mills is situated in Tamil Nadu where as the minimum is in Assam. The state wise distribution of spinning mills (Non SSI) in India is shown in table 2.2.

9 44 TABLE 2.2 STATEWISE DISTRIBUTION OF SPINNING MILLS (NON SSI) State Andra Pradesh Assam. Bihar Chattisgarh Gujarat Haryana Himasala Pradesh Karnataka Kerala Mathya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Uttara Pradesh West Bengal The number of spinning mills in Tamil Nadu (non SSI) increased from 838 in 223 to 92 in 223 where as in Maharashtra it increased from in 3 in 223 to 4 in 223. The most dominating states in concentration of spinning mills in India (Non SSI) are Tamilnadu, Maharashtra and A P where as the minimum is in Bihar and Assam, with 7 and mills respectively during 223. The higher rate of increase of spinning mills is seemed in T.N. at 9.9 per cent during the period from 223 to ManagementWise Spinning Mills In general cotton textile Mills are classified into public cooperative and private sector. The public sector textile mills may be owned by central or state Government. Managementwise distribution of Spinning Mills in different state as on 3323 was shown in Table 2.3

10 4 TABLE 2.3 MANAGEMENTWISE DISTRIBUTION OF SPINNING MILLS Nature of Mgt States Public sector Central State Coop sector Private sector Total A P Assam 3 Bihar 3 4 Chhattisgarh Delhi Goa Gujarat 4 4 Haryana 9 H P J& K 2 2 Jharkhand Karnataka Kerala M P Maharashtra Manipur Orissa 7 Punjab Rajasthan Tamilnadu U P Uttaranchal 2 8 W B Union Territories Out of a total 77 Spinning Mills as on 223, 87.3 per cent was owned by the Private sector and per cent 9.3 per cent belonged to the Cooperative, the remaining 3.84 per cent of mills were owned by central and

11 4 state Governments. In Tamil Nadu and in Gujarat the private textile mills were 89, respectively during 223. The Cooperative mills were 87 in Maharashtra followed by 8 mills in T.N. the textile mills owned by the State Government were more in U.P with mills. In short, the spinning mills in India are concentrated in three states namely Tamil Nadu (92) Maharashtra (4) A.P () Installed Capacity The spinning industry in India has been making steady and impressive progress during the last few decades. This progress was considerable facilitated by the rapid strides made in cotton production on the one hand and raising demand for yarn and textile both from domestic and overseas markets on the other India has been able to make impressive headway in recent years in the export of textile goods. The installed capacity of cotton textile mills refers to the installation of spindle, rotor and looms. The installed capacity of cotton textile mills in India during 2 to 223 is shown in 2.4. TABLE 2.4 INSTALLED CAPACITY OF COTTON TEXTILE MILLS IN INDIA (NONSSI) Year Spindle ( in millions) Rotors (in lakhs) Looms (in lakhs)

12 47 The number of spindle in the textile mills increased from 3.3 million in 2 to 44.7 millions in 223. There is a gradual increase in the number of installed spindles during the above period. The number of rotors increased from 3.94 lakhs in 2 to.4 lakhs in 223. The looms decreased from.23 lakhs in 2 to.2 lakhs in 223. FIGURE 2.2 INSTALLED CAPACITY OF COTTON TEXTILE MILLS IN INDIA (NONSSI) 2.4. Yarn Production by Spinning Mills The production of the Spinning Mills is measured in terms of Million Kg of yarn produced the spinning mills are classified into private, public, and Cooperative sectors. The production of yarn includes the production of cotton and blended yarn also. Table 2. shows the yarn production by various types of spinning mills during 2 to 223.

13 48 TABLE 2. YARN PRODUCTION BY VARIOUS TYPE OF SPINNING MILLS Type of units Year Private Public Cooperative (In million kilograms) Total The production of yarn increased from 3.22 million kgs in 2 to 487. million kgs in 223. During the year 2 to 223, the private sector spinning mills produced more yarn than the public and Cooperative spinning mills because of the higher number of private spinning mills established in India. The yarn production in private spinning mills increased from million kgs in 2 to million kgs in 223. The production of Cooperative spinning mills in India declined from 9.2 million kgs in 2 to 4.3 million kgs in 223. The production of yarn in public sector spinning mills was also declined from

14 49. million kgs in 2 to 49.2 million kgs in 223. The rate of decline in the production of yarn was very high in public sector spinning mills which suffered a decline of 7.32 per cent during the research period. FIGURE 2.3 YARN PRODUCTION BY VARIOUS TYPE OF SPINNING MILLS Year Wise Production of Spun Yarn The pattern of year wise production of spun yarn during 2 to 223 were as follows.

15 TABLE 2. YEARWISE PRODUCTION OF SPUN YARN (millions kgs) Year Cotton Blended/Mixed % Non Cotton Total It is clear from table 2. that the total spun yarn production in the research period.(2 to 223) the total yarn production was increased from 224 million kgs in 2 to 383 million kgs in 223. Over the period of spun yarn production, the cotton has major contribution during the research period. The above table also indicates that the spun yarn of blended and non cotton were ups and downs during the period. The production of spun yarn of blended cotton increased from 4 million kgs in 2 to 828 million kgs in But during the research period blended cotton yarn has uneven position.

16 FIGURE 2.4 YEARWISE PRODUCTION OF SPUN YARN (millions kgs) CountWise Production of Cotton Yarn The pattern of count wise production of cotton yarn during 2 to 223 along with anticipated figures were as follows. TABLE 2.7 COUNTWISE PRODUCTION OF COTTON YARN (millions kgs) Year s 2 s 23 s 34 s 4 s 8 s 8 s & above Total

17 2 It is clear from table 2.7 that the total cotton yarn production in the research period.(2 to 223) the total yarn production was increased from 227 million kgs in 2 to 383 million kgs in 223. Over this period the cotton yarn production of higher counts (4 s ) increased from 4 in 2 to 294 in 223. Count (8 s ) increased from 2 to 2 and 8 s and above increased from 39 to 4 during the same period. Lower counts ( s ) increased from 2 in 2 to 4 in 223. (2 s ) increased from 49 to 3, (23 s ) increased from 479 to 82 and (34 s ) also increased from to 987 during the same period Workers in Spinning Mills and Composite Mills in India The number of workers on rolls in spinning mills is classified as those in small scale and non small scale mills. Here workers on roll mean the labours worked in the various categories of spinning mills in India. During the research period workers on rolls was most significant role. The Non Small Scale Mills consist of Spinning and Composite Mills. The number of workers on rolls in both spinning and composite mills (Non SSI) as on 3323 is presented in table 2.7

18 3 TABLE 2.8 WORKERS IN SPINNING MILLS AND COMPOSITE MILLS IN INDIA (NON SSI) States Central state CoOperative Private Total A P Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana H P J & K Jharkhand Karnataka Kerala M P Maharashtra Manipur Orissa Punjab Rajasthan Tamilnadu U P Uttaranchal W B The number of workers on rolls in the composite and spinning mills is higher in the state of Tamilnadu i.e.2284 followed by Maharashtra and Gujarat, 8 and 984 respectively as on the year 223. The number of

19 4 workers on rolls is less in Assam and Bihar with 384 and 23 respectively the number of workers on rolls in Tamilnadu increased from 9933 in 223 to 2284 in 223. In Maharashtra, it declined from 882 to 229 during the same period. The other notable states, which provided employment through the spinning mills, were U P, Punjab, M P, A P, Rajasthan, and Karnataka which provided employment of 338, 33, 922, 8, 737, and 947 respectively StateWise Distribution of Spinning Mills in India (SSI) The spinning mills in small scale sector in India are also found in various states of India. The distribution of spinning mills (SSI) in India during 2 to 223 is presented in table 2.9. TABLE 2.9 STATEWISE DISTRIBUTION OF SPINNING MILLS IN INDIA (SSI) State A P Gujarat Haryana Karnataka M P Maharashtra Punjab Rajasthan Tamilnadu U P The small scale units in the spinning sector were less when compared to the Non SSI units. The number of SSI was high in Tamilnadu. It had increased from 94 in 2 to 3 in 223, followed by the states of Haryana and Uttar Pradesh which had 9 and 43 in 223 respectively.

20 2.4. Installed Capacity of Small Scale Spinning Mills The capacity of spinning mills is expressed in terms of number of spindles and rotors installed. The SSI in India provides substantial employment even though they are comparatively less than the Non SSI. The state wise distribution of small scale spinning mills with installed capacity and workers on rolls as on 223 are presented in table 2. were as mentioned under. TABLE 2. STATEWISE INSTALLED CAPACITY OF SMALL SCALE SPINNING MILLS State No. of mills Spindles Rotors Workers on roll A P Delhi Gujarat Haryana H P Karnataka Kerala M P Maharashtra Orissa Punjab Rajasthan Tamilnadu U P Uttaranchal W B The number of small scale spinning mills in Tamilnadu was as high as 3 units which constitutes in 32 of the total mills in India during 223. The installed capacity of spindles and rotors and workers on rolls are 4284, 348, and 422 respectively. The next two states of Haryana, U P regarding the number of small scale spinning mills of these mills are 9 and 43

21 respectively. The spindles of these two states were 2923 and 892 respectively. The small scale spinning mills of Punjab, Gujarat and Maharashtra were only 3, 28 and 2 respectively. The workers on rolls in these three states were 224, 94, and 28 respectively Workers on Rolls in the SSI in India The state wise workers on roll in SSI during from 223 to 223 are clearly presented in table 2.. TABLE 2. STATE WISE WORKERS ON ROLL IN SSI IN INDIA State A P Delhi Gujarat Haryana H P Karnataka Kerala M P Maharashtra Orissa Punjab Rajasthan Tamilnadu U P The employment provided by the small scale spinning mills in Tamilnadu was the maximum of 422 in 223 followed by the states of Punjab and Haryana which provided employment of 224 and 2392 respectively. Whereas minimum in the states of Delhi and H P with 2 and 72 respectively. The number of employment provided by the small scale spinning mills in Tamilnadu increased from in 223 to 422 in 223. Generally the number of employment provided by the small scale spinning

22 7 mills was less as compared with Non SSI. The table 2. also clearly noted that the number of workers on roll of all states in India except Tamilnadu was uneven trend during the year 223 to Closure of Textile Mills in India (NON SSI) The organized textile mills have been closed for various reasons like shortage of funds, lack of demand and marketing difficulties, technical difficulties, mismanagement, division of funds and lack of interest by management. In the textile industry the important cause for closures are increase in material and labour cost on the one side and hectic competition on the other. The year wise closure of textile mills (NonSSI) in India is shown in Table 2.2. TABLE 2.2 YEAR WISE CLOSURE OF TEXTILE MILLS (NON SSI) Year Spinning mills Composite mills Total The number of mills closed had increased from 383 in 2 to 7 in 223. The rate of increase in the closure of textile mills was 49.9 per cent during the period of 3 years. The number of composite mills closed had decreased from 2 in 2 to 84 in 223. The rate of decrease in the

23 8 closure of composite mills was 38.9 per cent. In the case of spinning mills, it had increased from 22 to 487 in same period. The rate of increase in the closure was 8.89 per cent during the research period. FIGURE 2. CLOSURE OF TEXTILE MILLS (NON SSI) State Wise Closure of Textile Mills (NON SSI) The organized spinning mills in India had been entrapped in a crisis in the last ten years. There was no let up in the situation during the year 29. The state wise number of closed textile mills as on 3323 nearby in Table 2.3.

24 9 TABLE 2.3 STATE WISE CLOSURE OF TEXTILE MILLS (NON SSI) State Spinning mills Composite mills Total A P Assam Bihar Chhattisgarh Gujarat Haryana J& K Karnataka Kerala M P Maharashtra Manipur Orissa Punjab Rajasthan Tamilnadu U P Uttaranchal W B H P The increase in the number of closed mills indicates the continued bad health in the industry. The number of closed textile mills in Tamilnadu was the maximum of 73 in 223 followed by the states of U P, Haryana, and Gujarat which contributed by 4, 4, and 8 respectively. Whereas minimum in the states of Chhattisgarh, J& K Manipur and H P with each. Textile mills in Tamilnadu had contributed per cent in total number of closed mills in

25 India. From the above table also it is clear that number of closed spinning mills had constituted 8.2 per cent on the total closed textile mills in India Closure of Spinning Mills in India (NON SSI) The spinning mills especially belonging to Non SSI category have been closing continuously during the year 223 to 223. It is important to analyze the closure of spinning mills in various states to understand the level of industry's bad health in the spinning mills. The closure of spinning mills in various states in India from 223 to 223 cleared in table 2.4. TABLE 2.4 STATE WISE CLOSURE OF SPINNING MILLS (NON SSI) State A P Assam Bihar Chhattisgarh Gujarat Haryana J& K Karnataka Kerala M P Maharashtra Manipur Orissa Punjab Rajasthan Tamilnadu U P Uttaranchal W B H P

26 The number of closure of spinning mills in Tamil Nadu (non SSI) increased from 9 in 223 to 73 in 223. The higher rate of increase of spinning mills is seemed in Tamilnadu at 82. per cent during the period from 223 to 223. The number of closure of spinning mills in Tamilnadu was the maximum of 73 in 223 followed by the states of Maharashtra, which of 47. Whereas minimum in the states of Chhattisgarh, J&K, Manipur with each. From the above table also it is clear that the closure of spinning mills in Tamilnadu and Haryana were increased from 223 to 223. Other states had changeable position during the same research period Consequences of the Closures of Textile Mills in India The immediate and direct consequences of the closure of textile mills in India are idleness of spindles, rotors, looms, and unemployment. The affected number of spindles, rotors, looms due to the closure of mills from 2 to 223 are shown in Table 2.. TABLE 2. YEAR WISE CONSEQUENCES OF THE CLOSURES OF TEXTILE MILLS IN INDIA Spindles Workers on Years Rotors Looms (in s) rolls

27 2 The number of affected spindles decreased from 894 thousands in 2 to 22 thousands in 223.Whereas the affected rotors increased from 42 in 2 to 344 in 223. The looms affected decreased from 9 in 2 to 33 in 223. The total number of workers affected due to the closure of textiles mills were decreased from 344 in 2 to 297 in 223. From the above table 2.4 also cleared about that the major affected from rotors and spindles due to closure of textile mills in India. 2. SPINNING MILLS IN TAMILNADU The textile industry in south India Ltd established mills in different centres but a concentrated development took place only in Coimbatore area in Tamil Nadu, because of the availability of facilities like moderate climate growing of cotton, abundant labour, good transport facility both by road and rail and sufficient power from pykara hydel station. Most of the mills are purely spinning units. Several spinning units desire expansion on the weaving side to develop in to a fully self sufficient unit to cater to the clothing needs of the south just as their counter parts in the north. But the government looks as at any such move and has been a pursuing a policy which in effect is against such expansion, in order to protect the interest of the handloom industry, largely concentrated in the south thus the major interest is in the production of yarn, which for the most parties utilized by the handloom weavers. In the south, the spinning mill industry is link to the development if the handloom industry and the vicissitudes of the one affect the other to an equal extent. The first mill in Coimbatore namely the Coimbatore spinning and weaving mills ltd was established in 888. This was followed by the Kaleeswaran mills ltd in 97 and by the Sri Ranga vilas ginning, spinning and weaving mills ltd, in 922 and the Radha Krishnan mills ltd in 923. These mills depended on power from steam. In about 933 pykara hydro electric power was made available at cheap rate and this gave an impetus to the

28 3 starting of more mills. The south India mill owners association was founded in 933. The association can take real pride for the steps in had taken for establishing a textile research institute in the south (SITRA) at Coimbatore. The association has been representing the mills in general matters, individually and collectively. For any important matters, mills usually lookup to the parent body for help. If has been co. operating with the state and central Govt. and has responded to the invitations from them for nominating representative to the various committees and bodies appointed from time to time. In south India, during 933 there were 4 mills with an installed capacity of about 24 lakhs spindles and 429 looms and with the average number of daily workers exceeding 7. The capital invested amounts to Rs.8. cores. The industry s capacity in the south is roughly one fifth of the total capacity of the Indian union, but its growth in this part of the country has been comparatively recent. The textile industry in India dates back to 88 when the first cotton mill in India was started in Calcutta but the real development can, however be attributed to the Bombay pioneers who in 84 started the first mill in Bombay. Although as stated above the rapid expansion of the spinning industry in south India began only in 93, there were a few units established long before. To the pioneering efforts of the founders of these units their experience and prudent management must be attributed the rapid progress and success of the industry achieved in subsequent years. The first cotton mill, south of madras, the Thirunelveli Mills Company Ltd was founded in 874 by two brothers, Andrew and Frank Harvey. The enterprise of the Harvey brothers did not end with this one in Ambasamudram within a period of less than two years. They laid the foundation for a new mill in Tuticorin and with another nine years the Madras mills company Ltd. Came into being at Madurai. Thus within a decade to speed

29 4 up the cotton business Andrew and Harvey had amalgamated these three spinning mills, in the year 929 into one single mill called the Madura mills company Ltd. This is in existence even today. From these humble beginnings the progress of expansion was slow but steady up to 93 but there were no indication until the concentration of the industry in any one particular district as in fact it developed later. Thus while the Coimbatore spinning and weaving company Ltd, Kaleeswaran Mills Ltd, Lakshmi Mills Ltd, Cambodia Mills Ltd, Vasanth Mills Ltd, and others were started in Coimbatore the Buckingham and Carnatic Company Ltd was started in Madras, The Loyal Mills Company Ltd in kovilpatti and Sree Meenakshi and Mahalakshmi Mills Ltd in Madurai. The first cotton textile mill was started in 874, in the Madras presidency which is now called Tamil Nadu. The Southern India spinning and weaving company was started with a capital of Rs,,. The next mill was started immediately in 87 by Sounder Das and was called the Madras United Spinning and Weaving Co.Ltd. The Madura mills the biggest among the group, was started some time later in 892 with 3344 spindles. These mills were amalgamated. One by one in the later years and today call themselves, the Madura mills Ltd the no of cotton mills in Madras increased from 4 to 23 mills from the year 9 to Number of mills was increased from 39 to 4 during 93 to 939 with a labour force of 484 and 8 in the respective years. 2.. Growth of Textile Mills in Tamilnadu The cotton textile mills consists of spinning mills both SSI and non SSI and composite mills. The number of Cotton textile industries in Tamilnadu during 2 to 223 is shown in table 2..

30 Year TABLE 2. GROWTH OF TEXTILE MILLS IN TAMILNADU Spinning mills Non SSI SSI Total Composite mills (non SSI) Total The total number of spinning mills increased from 3 in 2 to 2 in 223. The majority of textile mills are spinning mills in Tamilnadu which was constituted 97.8 per cent to the total textile mills during the year 223. Among the spinning mills in the category of SSI and Non SSI constitute.7 and 48.2 respectively to the total spinning mills during the year 223. The number of Non SSI spinning mills increased from 82 in 2 to 9 in 223 where as the number of SSI spinning mills increased from 792 in 2 to 3 in 223.

31 2..2 Capacity Installed in Spinning Mills in Tamilnadu The capacity installed in the spinning mills are measured in terms of spindles, rotors, power looms and weaving units. The growth of capacity installed in the spinning mills in Tamilnadu is given table 2.7. TABLE 2.7 INSTALLED CAPACITY OF SPINNING MILLS IN TAMILNADU Year Spindles (in s) Rotors Looms The no. of spindles in spinning mills in Tamilnadu increased from 474 thousands in 2 to 2277 thousands in 223 whereas the rotors increased from 2499 to 323 during the same period. The power loom increased from during 2 to 4344 during 223.

32 7 FIGURE 2. INSTALLED CAPACITY OF SPINNING MILLS IN TAMILNADU 2..3 Management of Spinning Mills in Tamilnadu The spinning mills are classified into four categories on the basis of their management style. These are central, state government, cooperative sector and private sector spinning mills. The distributions of spinning mills in Tamilnadu during the year 223 on the basis of its management structure are shown below. TABLE 2.8 MANAGEMENT WISE DISTRIBUTION OF SPINNING MILLS IN TAMILNADU S.NO Nature of Management No. of Mills Percentage Central Government State Government Co. Operative sector Private sector Total 92

33 8 In the above table 2.8 presents the distribution of spinning mills in Tamilnadu on the basis of management. It is seen that 97.8 per cent of spinning mills in Tamilnadu were run by private sector and.9 per cent was under cooperative sector. Only.7 and. per cent of the total spinning mills were under the Central and State Government respectively. FIGURE 2.7 MANAGEMENT WISE DISTRIBUTION OF SPINNING MILLS IN TAMILNADU 2..4 Capacity Installed in Spinning Mills in Tamilnadu The spinning mills in Tamilnadu is classified into three important categories as Non SSI, and SSI and Export oriented units (EOU) Non SSI is further classified as central owned state owned, CoOperative, and private sector, the capacity installed namely spindles, rotors and looms in the above said six categories of spinning mills as on 223.

34 9 TABLE 2.9 CAPACITY INSTALLED IN SPINNING MILLS IN TAMILNADU S. No Nature of Management Spindle Rotors Looms Non SSI Central Government State Government Co. Operative Private SSI EOU Total From table 2.9 it is seen that the installed capacity in spinning mills by sector basis. The installed spindles in the private sector spinning mills were 779 in 223 followed by the SSI consist of 4284 spindles; the Co operative spinning mills consist of 4282 spindles. The per cent EOU spinning mills consist of 8294 spindles in 223. The number of rotors was a maximum of 799 in the private sector spinning mills, followed by 348 rotors in the SSI. The numbers of looms in the private sector are 429 out of the total looms of 4 in during 223. From the above table 2.9 also identify about 77.8 per cent of the spindle capacity was in the private sector and per cent of the spindle capacity was in small scale sector, and remain per cent of spindle capacity was in public sector and co. operative sector during the year 223. From table 2.9 it is seen that.8 per cent of the rotors capacity was in the private sector and per cent of the rotor capacity was in the small scale sector, and remaining per cent of spindle capacity was in public sector and co. operative sector during the year 223.

35 7 2.. Workers in Spinning Mills and Composite Mills in Tamil Nadu The spinning mills provide employment opportunities to the people in Tamil Nadu. The workers on rolls in the spinning mills are analyzed with the help of figures available for the spinning and composite mills EOU and SSI. The number of workers in the above categories of spinning mills is presented in the table 2.2. TABLE 2.2 WORKERS ON ROLLS IN SPINNING MILLS IN TAMIL NADU Years Spinning &composite mills (Non SSI) SSI EOU Total The employment provided by the spinning and composite mills (Non SSI) in Tamilnadu increased from 9247 in 2 to 2284 in 223. Which constitutes about and 84.3 per cent of the total employment provided by the spinning mills overall during 2 and 223 respectively. The workers on rolls in SSI increased from 2493 in 2 to

36 7 422 in 223. The employment provided by the EOU spinning mills was increased from 32 in 2 to 947 in 29. But after 29 it was decreased to 93 in 223. From table 2.9 it is seen that 84.3 per cent of the workers on roll were in the spinning and composite mills (Non SSI) and.3 per cent of the workers on roll was in the small scale spinning mills, and.3 per cent of the workers on roll was in EOU during the year 223. FIGURE 2.8 WORKERS ON ROLLS IN SPINNING MILLS IN TAMIL NADU 2.. ManagementWise Workers on Rolls in Spinning Mills in Tamil Nadu The spinning mills provide employment opportunities to the people in Tamil Nadu. Table 2.2 presents the workers on rolls in the spinning mills based on management wise.

37 72 TABLE 2.2 WORKERS ON ROLLS IN SPINNING MILLS IN TAMILNADU S.No. Nature of Management Non SSI Workers on rolls Percentage 2. Central Government State Government Co. Operative Private SSI EOU Total 2893 The workers on rolls in the above said six types of categories of spinning mills in Tamilnadu during 223 are shown in table 2.2. From table 2.2 it is seen that workers on rolls in spinning mills by sector basis. The workers on rolls in the private sector spinning mills were 2284 in 223 followed by the SSI consist of 422; the Cooperative spinning mills consist of 83. The EOU spinning mills consist of 93 in 223. From table 2.2 it is seen that 8.4 per cent of the workers on roll were in the private sector and 4.8 per cent of the workers on roll was in the small scale sector, and remain per cent of spindle capacity was in public sector and Cooperative sector during the year Closure of Spinning Mills in Tamil Nadu Due to industrial sickness the spinning and composite mills in Tamilnadu were closed. The details of the closure of mills in Tamilnadu during the year 2223 are presented in table 2.22.

38 73 TABLE 2.22 CLOSURE OF COTTON TEXTILE MILLS IN TAMILNADU Year Spinning Composite Total The number of closed spinning mills in Tamilnadu increased from 77 in 2 to 73 in 223. The closed spinning and composite mills during 2 were 77 and respectively. Whereas in and respectively. In total, the number of closed mills increased from 82 in 2 to 83 in 223. From table 2.22 it is seen that the spinning mills contribute maximum of closure than composite mills. From the above table clear that the 94.4 per cent of spinning mills were closed during 223.

39 74 FIGURE 2.9 CLOSURE OF COTTON TEXTILE MILLS IN TAMILNADU 2..8 Consequence of the Closure of Spinning Mills The closure of spinning mills affected the normal life of workers and also the working of spindles, rotors, and looms. The number of affected spindles, rotors, looms and workers on rolls in Tamilnadu form 2 to 223 are shown in Table TABLE 2.23 SPINDLES, ROTORS, LOOMS AND WORKERS AFFECTED DUE TO CLOSURE OF SPINNING MILLS IN TAMILNADU Years Spindles (in s) Rotors Looms Workers on rolls

40 7 The number of affected spindles increased from 9 thousands in 2 to 2882 thousands in 223. The affected rotors increased from 3432 in 2 to 979 in 223. The looms affected decreased from 29 in 2 to 28 in 223. The number of workers on roll increased from in 2 to 449 in 223.