Cluster Profile
1 Name Of Cluster Erode Powerloom
2 Place Erode
3 District Erode
4 State Tamil Nadu
5 No of firms (by type) Tamilnadu 
6 No. of workers Tamilnadu 
7 Turnover(Rs in Million's) Tamilnadu
8 Associations in cluster Erode Handloom Cloth Merchants Association
Erode Cloth Whole Sale & Retail Merchants Association
Erode Chamber of Commerce & Industry
Textile & Garment Exporters Association
The Federation of Erode Dist. Handloom Weavers Society
9 Major products Woven Garment Export
Made-up Export ( Home Textiles)
Grey Fabric Export
Made up for domestic market ( Lungi, Towel, Dhothie, saree, etc Intermediate products sold in local market (Grey / Processed Fabrics). Supplied through the traders as per specific orders.
10 Specific and relevant technical institutions (R&D, Testing Lab accredited) Lack of innovative techniques
11 Major markets Chennai
Mumbai
New Delhi
12 Major problems/prospects The cluster is not quality conscious as no textile unit is certified for any quality standards like ISO 9000 QMS
Inventory management principles / optimum purchase level are not followed as the purchase is made to the order.
Low productivity
Break down maintenance is carried out not preventive maintenance
Heritage value of power loom is not given due importance
Though the labor cost is Cheap compared to competing clusters, scarcity of skilled labor force is experienced in recent past.
Training of the work force is not given due importance
Few power loom entrepreneurs has invested in modern looms like Projectile and Rapier looms for producing export quality fabrics and to reduce the lead-time, which is the need of the hour.
The processing units which cater the cluster are facing severe problems in satisfying the stringent norms fixed by pollution control board and due to unrest in certain section of the society.
Only few power loom entrepreneurs participate in trade fairs to promote their products.
More than 90% of the manufacturing facility is working on job work basis and they don t aware of the market potential.
Not utilizing Government schemes such as MDA effectively for market development
Supported by the capacity of developing all types of fabric samples but mainly cotton oriented because of cost advantage. (Fiber like polyester is cheaper in other competitive countries like china)
Absence of suitable pricing method.
Discount facility is not generally extended since the products are made to the order.
Cluster is concentrating mainly in Domestic market and on indirect/deemed exports. Still to explore the direct export market in an effective manner since there is lot of scope
Less focus on customer taste and design / color trends, seasonal requirement
Lack of proper finance management.
Most of the household weavers don t have a Bank account.
Not maintaining any records to track their history of business.
Except the leading manufacturers, most of the weavers don t avail the working capital facility .
Even though the cluster has good net work of all Financial Institutions it is not well supported for Power loom business.
Suppliers mainly avail private finance because of the flexibility. Hence they are not in a position to avail the tax benefit.
13 Data source and updated on DSR by by Govt. of India, Ministry of Textiles Regional Office of the Textile Commissioner Chinthamani Supermarket Complex, R.S. Puram (P.O), Coimbatore. In year 2008