This chapter gives a birds view of the textile mill industry. As the universe of

the study involves only the cotton textile mills of Kerala, theoretical description

focuses majorly on cotton textile mill industry across the global, national and

regional (Kerala) levels.

TEXTILE MILL INDUSTRY IN KERALA- AN OVERVIEW

Clothing is an unique characteristic behaviour of the human species and from

time immemorial has been an essential part of his civilized life. Apart from food, no

other physical material in the world has been able to impose such influence on the life

history of humans as clothing does. Studies assume the use of leaves, tree barks, animal

skins and other natural materials as the earliest form of clothing, possibly as a

protective shield against the forces of the nature but gradually clothing began to assume

social significance and began to represent the culture, customs and prestige of a

particular community. There is an age old saying indicating the significance of clothing

in human life.

“ Clothes maketh the man”

The genuine beginning of a proper clothing practice is believed to have started

thousands of years ago probably around the Stone Age where different kinds of

materials were spun into yarns and netted, looped, knit or woven into textile fabrics and

the earliest available evidence from a prehistoric cave in Republic of Georgia in the

form of dyed flax fibres in an obscured shape of a cloth dating to 36,000 BP attest to

that belief. 108 Even the word “textile” means “to weave” having originated from the

Latin word “textere”. With the expansion of the human knowledge with time, diverse

materials such as cotton, silk and wool began to take the form of clothing and in the

course of time colours were added to the fabrics adding colour and charisma to the

human life. The textile traditions evolved in different parts of the world later enhanced

the social and cultural significance of clothing. Fabric relics from the Indus valley

civilization of 2450–2000 BC (figure.1), an ancient painting of Egyptian Queen

Nefertari of 1298-1235 BC depicting her in a sheer plated linen garment (figure.2) and

woven silk textiles from the tombs at Mawangdui, Hunan provinces of China of the 2nd

century BC ( figure.3) are ample proofs of the textile proficiency of the ancient world.

108 http; // en. Wikipedia.org/ History of clothing and textiles.

Figure.1.1 Fabric relics from Indus valley109

Figure.1.2 Painting of Queen Nefertari.110

Figure.1.3 Silk textiles of 2nd BC Chinese tombs111 109 http;//www.harappa.com 110 http; // en. Wikipedia.org/ History of clothing and textiles. 111 Ibid

India is a land of myths and legends which pertain to her clothing tradition also.

One can come across numerous references about clothing in the epics, Puranas and

Upanishads of India. Indian mythology consider Sage Markanda, the master weaver of

Gods, as the first to weave a fabric from the fibers’ of the Lotus plant.112 In

Mahabharata, there is a reference of fine fabrics from the ancient Tamil region

presented to Yudhistira, the Pandhava king during his coronation. According to Hindu

religion cotton is the favourite fabric of Lord Shiva while that of Lord Vishnu is silk.

Apart from the myths and beliefs there are historical evidences calling attention

about the rich clothing tradition of India. Relics from Harappa and Mohenjo-Daro

dating back to 2450–2000 BC exhibits magical evidences about the fabric tradition of

India. Buddhist literature gives an account of muslins from Kashi used to wrap the

physical body of Buddha when he attained ‘Nivarana’. Silappadikaram, the coronary

Tamil literary work by Ilango Adigal, of 3rd century AD mentions about the wonderful

art of fabric weaving in Tamilnadu. Roman historian Gaius Plininus (23 BC – 79 AD)

in his text ‘Historia Naturalis’ has recorded that Roman emperors used to drain their

treasury for prized Indian cotton known as Mul Mul Khas. Kanjipuram, Kumbhakonam

and Tanjavur down South have always mesmerized the world with their unique

weaving styles. Kalamkari (pen painting) fabrics and the ‘Bleeding Madras’ fabrics

have also enamoured the world. Ancient Indians were called the "master dyers of the

world" as they alone had the expertise in fabric dyeing. All these are mere glooms of

the endless record of references about the textile magic of India. The British intention

to expand the hegemony of their technology driven mills stalled the production of

ethnic Indian textile products and soon India became a reminiscent of their past glory.

But the Tussar Kanthas of Bengal, the Phulkari of Punjab, the Chikankari of

Lucknow, the mirror works of Rajasthan, the Ikkats of Pochampalli, Patan Patolas,

Paithanis of Gujarat , Chirla works of Andhra Pradesh, Kancheevapuram silks, Jamdani

works of Banaras, a never ending list ., still continues to captivate the eyes world wide. 112 Manohar, Sajnani .(2003). Encyclopedia of Tourism Resources in India. New Delhi: Gyan Publishers.

It can be said that every region conceals within her, an unique and enamouring

clothing history and that of Kerala is no different. Regarded as the ‘Dark Era’, a concise

history of the first seven centuries of Kerala is still unknown and so the clothing

tradition in these centuries in still blurred but it is assumed that Kerala had incorporated

textile production into her socio-economic system from a long time back itself. The

textile tradition of Kerala open to human knowledge is an intricate and deeply rooted

one where the sensitive dedication and endurance of the weavers involved in the art of

cloth making had their marks on every inch of fabric they created. Several literature,

philosophical and art forms of Kerala carry revered references about clothing. In the

religious creed of Kerala, clothing ( Malayalam:vastram) is signified as an ultimate

embodiment of human physicality as testified in Jnana Pana of Poonthanam,

considered the “Bhagavad-Gita of Malayalam”

“Chatthu ponneram vastram athu polum,

Othida kondu pokan orutharkkum”

Which implies that ‘at the time of death, even the cloths they wear, cannot be

taken with them by any one’. In Brahmasūtra- Bhāsya, Adi Shankara propagates the

karya- karana Advaita philosophy through an example of a cotton cloth; a cotton cloth

is an effect of threads, which is a material cause. Without threads there will be no cloth

and without cotton there will be no thread meaning, an effect has no existence without a

cause. A woman draped in mundum neryathum, one of the masterpieces of Kerala

textile tradition, was considered the ultimate symbol of a Kerala dame as symbolized in

the various oil paintings, especially the famed one ‘Atha Achan Varannu’ ( Here

Comes Papa) of Raja Ravi Varma, the world renowned painter. Many celebrated art

forms such as Kathakali, Mohiniyattam, Koodiyattam and Theyyam further attests the

textile tradition of Kerala with their vibrant array of dress embellishments. Hand woven

cloths finds a revered place even in the religious practices of Kerala where a bride is

usually presented with a traditionally made fabric (pudava) by the groom in Hindu

marriage ceremonies. There has also been an age old religious custom in Kerala where

cloths were donated to upper as well as lower classes known as vastra danam.

While going through the textile tradition of Kerala one can witness that the state

had accumulated handloom weavers and artisans blessed with skills and perseverance

over the years to weave a rich textile tradition. History indicates that ancient traders

who visited Kerala often exchanged valuable dress materials alien to the natives of

Kerala. With the ‘Naduvazhi’ (Kingship) rule towards the 11th century, Kerala had

her own textile tradition, courtesy of ‘Calicos’, a hand woven cotton fabric which

originated in Calicut of Malabar province. Calicos, considered the magnum opus of the

Kerala textile tradition soon became famous and got praised all over the world for its

fine texture and beautiful colours. The weavers called chaliyers who used to make the

calicos were immigrants from neighbouring states. The legend goes that the Zamorin of

Calicut invited these weavers to Kerala and it is also hailed that Kolathiri Chirakkal

Rajas were the first to bring these weaver families and settled them in colonies. The

aspiration of these royal families to wear opulent cloths is said to be the impetus for this

audacious attempt. The immigration of these weavers started the creation of a

community of people in Kerala who were involved in the production of cloths. Two

castes identified as “ Idankai” and “Valankai” came to be represented as spinners and

weavers respectively and the pit looms became the earliest recorded method of cloth

making in Kerala. The earliest ways of cloth making in Kerala was strenuous in nature

and there existed a story of hard labour behind every piece of cloth created.

In the yester years of Kerala in the absence of textile shops the hand woven

fabrics used to reach the hands of its user by way of desi cloth vendors (Malayalam;

Thuni Vyaparikal) trading their products at houses of the clients reminiscent of a

modern home delivery system. Cloth trading during ‘poorams’ (festivals) and similar

crowd gathering occasions were a common sight in yester Kerala where the buyers used

to gain them by loud and boisterous bargaining calls. All the native customs and

activities related to the cloth making occupation literally came to an end under British

rule when they banned the production and import of indigenous fabrics from Kerala and

even imposed acts, one known as "Calico Act”, to boost their own textile mill industry

which drained the Kerala handloom industry to a mere shadow of their own past.

Mill made cloths made its entry into Kerala along the 1880’s itself by way of

‘paradeshi’ or visiting merchants from places such as Bombay and Ahmedbad. But

these mills made cloths were brought to Kerala only in limited quantities and only the

rich and the prominent families could afford it. Though these mill made cloths were

similar in appearance compared to hand woven cloths, there was a curiosity driven

demand for these products. These were priced upto the 15-18 paise range and

considering that the average earnings of the working class in Kerala during those

periods were less than that, they could only desire these products. Kerala was fortunate

to get indigenous mill made cloths in a genuine sense only in the 1900’s when the

“ Pushpagiri Spinning and Weaving Mill” was established in Thrissur but the supply

was limited to a few in and around Cochin province. Prior to that in 1890’s Aaron

weaving mill used to produce fabrics in Kannur but the threads were procured from the

handlooms. During early periods the only possible way in which working classes were

able to procure new cloths were occasions such as vernacular months of Chingam and

Medam (occasions of reaping crops) during which cloths were distributed to working

classes and also on occasions such as anniversaries, birthdays etc of the royal members.

It has to be said that though the status diminished, it is fortunate that the art of

hand weaving is still surviving in several niches of Kerala. Balaramapuram handlooms

with a fabulous collection of exclusive cotton sarees with pure zari, 'Mundum

Nereyathum', 'Mundu', 'Earezha thorthu' (bathing towel) and 'Melmundu' encompassing

a 200 year tradition are still famous in and outside Kerala. The weavers of

Balaramapuram belonged to the Saliyas community who migrated from Nagar coil and

Tirunelveli in Tamil Nadu. Chendamangalam looms produced by ‘Devanga’ weaver

community is still prominent for its fine weaving and special weft effects. These

weavers are said to be brought by Paliat Achan, prime minister to the Kochi ruler, 500

years back. Besides pure cotton and silk sarees, Chendamangalam looms concentrates

in the production of settu mundu, earezha thorthu, kavani and super fine dhotis.

Kasaragod sarees are famed masterpieces made with a high quality yarn. Koothampalli

in Thrissur district is well known for its fine handloom fabrics where a community of

Devangas immigrated from Karnataka is engaged in weaving fabrics. Malappuram

and Kozhikode are famous for the 'Malabar loom' known for its texture and colour

combinations. The products, mainly furnishing fabrics, bed sheets, table mats etc. are

unique in their texture, colour combinations and craftsmanship. Kalarakudi fabrics are

cotton muslins with intricate zari embellishing the boarders and are famous for its

designs. “Veeralipattu”, a scared form of textiles is an intricately woven fabric used

in the art form of Theyyam. Thalangara village in Kasargode is famed for its Muslim

prayer caps which is natively known as “Thalangara Thoppy”. These caps which find

great demand in the Middle East countries are known for their intricate works and

fabulous designs. Different varieties of hand woven clothes were used to be

manufactured in and around Quilon (present Kollam) such as Kottar, Chirayinkil,

Paravoor and Pandalam but the tradition has now been faded to a few families. The

pulilyilakkara and kasavu mundu woven by handloom weavers throughout Kerala are

also proverbial. The puliyilakkara mundu finds especial demand amongst the Keralites

and share an important place in their clothing wardrobe. On a whole it can be noticed

that handloom weaving is continuing in Kerala in close quarters usually comprising one

or two families and further extending to a few.

Today a person is most probably judged by the dressing style he or she has

adopted and in the present era of fast moving life clothing signifies the demeanor,

social & cultural values and nativity of a human being like no other entity in the

physical world does. From the above discussions we can understand that the clothing

tradition of Kerala, India and the world as a whole bear their own characteristics innate

to each particular region and also that the characteristic sartorial tradition of Kerala is

principally associated with handlooms where the elegance and durability of the clothes

made were solely dependent on the skills and the endurance of the manpower involved

in it. Though the textile mills through the concept of mechanization have joined late to

the clothing tradition of humans the role played by them in the present day textile

industry cannot be underestimated. Therefore an introspection into the textile mill

industry at the global, Indian and Kerala scenario is considered pertinent .

1.1 Global Textile Mill Industry.

The textile industry from ancient times itself has been a prominent one but

before the advent of mechanization in the 17th century all the functional areas of the

industry were dealt manually. The textile mills formed as an upshot of the industrial

revolution changed the age old custom of manufacturing fabrics using bare hands in

small workshops and gave more prominence to cotton and wool. The significance of

cotton in the textile mill industry can be realized from its popular names in the 1800’s

and 1900’s during which it was referred to as the “King” and as “White Gold”.

The history of cotton textile mills is the history of mechanization itself as many

of the early industrial tools and gadgets were invented for and experimented in cotton

mills around the world. In 1741, a piece of industrial history was created with the first

ever cotton mill, the “Upper Priory Cotton Mill” recording its operations. Lewis Paul

and John Wyatt went into record books as the brain behind the first ever cotton mill.

But it was operated by an animate (asses) source but in 1742 Edward Cave started

Marvel’s Mill, (appendix IX) the second cotton mill in the world at Northampton,

which was driven by an inanimate source, using water as the source of operation.

With the growing popularity of mechanization, a diverse series of tools and

machines were invented in the mill sector and the “Spinning Mule” invented by Samuel

Compton in 1779 was the most significant amongst them. The Cromford Mill

(appendix IX) established by Richard Arkwright in Derbyshire, England in 1771

deserves a special mention in the history of textile mills. In 1782 Arkwright established

Shudehill Mill, the world’s first steam-driven mill at Manchester. By the end of the 17th

century textile mills started appearing in other parts of the world outside Great Briton.

The first textile mill outside England was in USA where Samuel Slater, established

Slater Mill, at Pawtucket in 1793. Russia had its first cotton mill by 1793, Switzerland

by 1794, Netherlands by 1795 and Belgium by 1799. In 1814 Francis Cabot Lowell,

established the “Boston Manufacturing Company”, at Waltham in USA which was

the first textile mill in the world in the true sense grouping the entire processes of raw

cotton-to-cloth production under one roof. Cotton textile mills reached the Asian

continent when the “Fort Gloster Mills” was established in 1818 at Calcutta.

The period from 1855-1898 is referred to as “the golden age of the cotton mill

industry” as cotton textile mills were established in many parts of the world. In 1870

Sun Mill ( appendix IX) built at Oldham, England became the first Cooperative sector

mill in the world. The mill built by members of the Oldham Industrial Co-operative

Society is also the first to go public limited based on the Companies Act of 1856 and

1862. In 1894 Columbia Mills (appendix IX) built by W.B .Smith Whaley, became the

first cotton textile mill to fully run on electricity. In 1968 Maple Mill become the first

spinning mill to use open-end rotors instead of spindles, successfully for commercial

production. Though United Kingdom was the birth place of textile mills, in 1929 USA

became the prominent nation. In 1972 India got the better of USA but in 1977 was

overhauled by China and since then is holding to that dominance. The cotton textile

mills which witnessed many important facets of industrial development today plays a

significant role in the global textile industry especially in the Asian countries.

Regarding the present scenario, textile industry at present worth 4,395 billion

US dollars is one of the biggest in the world with a major contribution emanating from

the Asian countries of China, India, and Pakistan. Textile mills at present constitutes

about 45% of the total global textile industry and in the global textile mill industry

cotton dominates with more than 40 % with Asian countries dominating the trade with

more than half of the world production. China alone accounts for about 15% of cotton

mills in the world. China is the highest producer of cotton yarn and cloths followed by

India. In terms of global spindle capacity China leads with around 35 % with India

having 22 %. United States of America is the only non-Asian country to feature in the

top five countries in the textile mill industry and the list of the major countries and

their competitive position in the global cotton textile mill industry is given in the

appendix V. As far as world cotton mill consumption and production is concerned at

present China, India and Pakistan accounts for more than half of the global share.

1.2 Indian Textile Mill Industry.

India, her textile heritage, of more than fourty centuries old, has long been

chronicled and cotton is primarily responsible for her textile legacy as she is time

immemorially considered as the cradle of cotton industry. The earliest reference of the

Indian cotton industry is found in Rig Veda of 1500 BC. Cotton known in ancient India

as “Karpasa”, a word of Sanskrit origin has always dominated Indian textile industry. In

modern India, cotton mills are regarded as the building blocks of the industrial system.

As we delve into the history of the Indian textile mill industry we can witness

that it is as colourful and eventful as anywhere in the world. As India had an already

established cotton fabric making tradition it was the British entrepreneurs who first

thought of inducing mechanization in the form of textile mills into India. In 1818 under

the British nose India saw the establishment of her first cotton mill. The mill named

“Fort Gloster Mills” was established by Henry Gouger, in Bauria, Calcutta. Though

failed, it was one of the major attempts to induce mechanization into a manufacturing

unit in India. Debating propositions revolve around the first successful cotton textile

mill in India. The Broach Cotton Mill established by James Landon at Umjad Bagh

in Broach, Bombay and the Bombay Spinning Mill( appendix IX) started by Cowasji

Nanabhai Davar, at Bombay appear as the involved candidates as both were established

in 1854. “Elgin mills” established by Hugh and John Maxwell at Kanpur, Uttar Pradesh

in 1862 became the first cotton mill to foray into northern India. Jansetji Tata was the

one who first attempted and succeeded in establishing a viable textile mill industry in

India. The Empress Mill ( appendix IX) started by him at Nagpur in 1874 bears

similar significance in Indian industrial history as the Cromford mill in global history.

All the welfare provisions were voluntarily provided to the employees at Empress Mill

at a time when the workers were facing a period of ‘ the darkest hours of industrial

work’ in India. In 1874 Madras United Spinning and Weaving Mill, popularly known

as “Choolai Mills” established by Seth Moolje Jaitha, became the first successful mill

in South India. As Malabar was a part of Madras, Malabar Spinning and Weaving Mill

was started as early as in 1884 which later came to be known as the first textile mill in

Kerala. “Forbes Spinning Mill”, popularly known as ‘Gokak Mill’ ( appendix IX)

became the first cotton mill in India to fully run on electricity in 1913 but most of the

mills remained as water powered ones till the 1940’s. In 1958 South India (Pettai)

Cooperative Spinning mill started by K. Kamaraj became the first cooperative mill in

India. Towards 1960’s there was a great need felt to have a government authority to

take over the sick mills and so the National Textile Corporation (NTC) was formed in

1968 under the Ministry of Textiles for the promotion of textile mill industry in India.

The Indian textile industry worth 49 billion dollars at present stands as one of

the largest in the world. The cotton mills constitute around 65 % of the textile mill

industry in India. As on 2012-2013 there were 2124 Non SSI cotton/manmade fibre

mills in India which provides employment to around 8.58 lakh. About 80 % of mills

are in the private sector and the remaining in pubic and cooperative sectors. Tamilnadu

leads in the number of mills in India with around 783 but Maharashtra and Gujarat are

the leading states in India in terms of production. The industry has an expansive base

with spun yarn, fabric, hosiery, and garments forming the major products. Organized

spinning mills, spinning & weaving mills, composite mills, and processing houses are

the major players in the present cotton mill industry. These players engage in the

production of fabrics of five different qualities.1.Coarse, 2.Medium.B, 3.Medium.A,

4.Fine and 5. Super fine. The major importing countries of Indian cotton products are

USA, UK, Japan, Russia, France, Nepal, Singapore, and European & African countries.

Indian textile mill industry as a whole and especially the cotton mill industry,

at present is going through a disturbed phase. Though there are 2124 mills in India, in

recent years there has been a steep increase in the number of mills closing down their

operations all over India. The number of functional mills in the major states and the

number of persons employed, as on 31.01.2012 is given in appendix V. The number of

textile mills which have been closed during the last three years in India amounts to 120.

It can be noticed that financial problem act as the major catastrophic factor behind the

closure of such a large number of mills and the details are given in appendix V

1.3 Kerala Textile Mill Industry

Textile Mill Industry in Kerala endorses only cotton textile mills. The first

textile mill in Kerala was started in the later part of the 19th century in the Malabar

region but most of the existing textile mills in Kerala were started after the formation of

the state in 1956. Textile mills with the backup of mechanization were started at a time

when machines and tools were quite unheard of in Kerala. The machinery had to be

shipped from Briton and since the moderate investment required for starting a textile

mill was said to be more than a 100 folds compared to a handloom unit there were only

a handful of entrepreneurs in the early stages and those entrepreneurs included both

native and European descents. Before the formation of the state there were only a small

number of textile mills in the Travancore and Cochin provinces but in comparison the

Malabar province which was conjoined to the Madras had a better share of textile mills.

Before 1956 all the mills were in the private sector except Balarama Varma Textiles in

the Travancore province where the Government had fifty-two percent contribution.

Vijayamohini Mills at the time of its formation, also in Travancore province had eight

per cent government share but the management was fully vested with private hands.

At the time of formation of Kerala in 1956, the Travancore- Cochin Provinces

and Malabar Province constituted around 23 textile mills employing about 12,000

hands and the list of mills existed in Kerala in 1956 is given in appendix VI. The

uprgradation and development of machines and tools increased the number of mills in

Kerala thereafter. The better share of mills in the Malabar province before 1956 was

due to the availability of raw cotton. Malabar due to a part of the Madras State, it was

comparatively easier for the entrepreneurs to procure raw material from Tamilnadu and

Andhra Pradesh regions at a lower cost as cotton cultivation was prevalent in these

regions from a long time back itself. Most of the entrepreneurs of the cotton mills in the

Malabar region were natives belonging to the Chettiar and Iyer castes. As Madras

presidency was the southern headquarters of the British East India Company, the

authorities also actively supported the establishment of many textile mills in Malabar.

The textile mills had their fair share of struggles throughout its various stages

of progress in Kerala. The non-availability of raw material was the biggest hindrance to

the establishment of a higher number of textile mills and considering this limitation, the

number of mills the state has been able to accrue throughout her industrial formation

deserves admiration. In the earlier periods the raw cotton for spinning and weaving

used to come from the arid Tamilnadu areas through the Palakkad gap to the Northern

Malabar villages and from there to the Travancore and Cochin provinces. Under the

British rule for procuring cotton for the textile mills, approval had to be sanctioned

from the British authorities at the Central head quarters at Kolkata and later at Bombay

and the mill entrepreneurs also had to dependent considerably on British import of

machinery, caustic soda and bleaching powder. All these hindrances acted as the reason

behind the establishment of very few textile mills in Kerala before 1956. Even the top

officials of the ruling provinces used to found it difficult to convince the British

authorities. Proposals for starting cotton textile mills in the Travancore region were

initiated under the directorship of the Diwan of Travancore, C.P.Ramaswamy Iyer in

the 1920’s itself but he was unable to convince the Central authorities of the viability of

the project for supplying enough raw cotton for starting the mills which is an indication

of the complexities to start a textile mill in Kerala under the British rule.

Manufacturing establishments with probably the oldest inheritance in Kerala,

textile mills has an history and heritage very few manufacturing industries in Kerala

could summon. When the foundation stone of the first textile mill was laid at

Thiruvannur near Kallai in Calicut on 8th March 1884 by W.H.Will Kingston, the

district and sessions judge of Malabar , it was a sort of industrial awakening in Kerala.

It is a matter of pride for Kerala that the mill named Thiruvannur Mills (present

Malabar Spinning and Weaving Mills, appendix IX) was established by a native

descent, Desamangalam Narayanan Nampoothirippad when the British rule was at its

peak. Six lakhs Indian rupees stood as the capital of the steam powered mill and was

materialized through 3000 shares of Rs.200. Within a year in 1885 the second textile

mill in Kerala was established, this time around by an European, James Darragh

at Quilon, a part of the then Travancore province. The mill was initially named as

“Darrgh Smail Mill and Co” (appendix 1X) but as its ownership went through different

hands it had different names on different periods. While having the name A.D Cotton

Mills (at present Parvathi Mills), it is believed to be the first textile mill in the

Travancore - Cochin provinces to run on electricity courtesy of the Pallivasal hydro-

electric project in 1941. The mill has also the distinction of becoming the first

composite (spinning, weaving and processing) textile mill in Kerala in 1932 and one of

the earliest of such mills in the whole of India. All the textiles started at the end of the

19th century were engaged in spinning only. “Pushpagiri Spinning and Weaving Mill”

established by T.R.Ramachandra Iyer at Poonkunnam, Thrissur in 1908 became the

first spinning and weaving mill in Kerala as well as South India and later the name was

changed to Sitaram Mills. The hosiery unit called Kunnath Textiles started in 1917 was

also one of the earliest textile units in Kerala. Infact upto the 1930’s A.D Cotton Mills

in Quilon, Sri Chithira Mills in Alwaye started by David Sassoon, Pushpagiri Mills in

Thrissur, Kunnath Textiles in Thrissur and Balarama Varma Textiles (at Nagercoil and

now in Tamilnadu) were the only cotton textile mills in the Travancore –Cochin

provinces. The period between 1930’s and 1960’s saw the establishment of a few

textile mills in Kerala. Among them, the Algappa Textiles formed in 1937 at Thrissur,

Cannanore Spinning and Weaving Mills started in 1948 at Kannur, Vijayamohini Mills

started in 1949 at Trivandrum were the prominent ones which are still functional in

nature but a couple of prominent textile units such as Vanaja Textiles formed in 1951 at

Thrissur and Thiruvepathi Mills established in 1961 at Kozhikode have been

permanently closed. Some other prominent units such as JP Coats Ltd (popularly

known as Madura Coats and now as Vaigai Thread Processors Ltd.) established in 1952

at Thrissur, Asok Textiles started in 1950 at Aluva and Tricot Mills formed in 1956 at

Thrissur are long been under lockout and on the cusp of permanent closure.

The period from 1960 to 1980 saw the establishment of many textile mills

in Kerala and most of the textile mills now functioning in the state were started during

this period. The year of 1962 was a significant one as far as textile mill establishments

are concerned as the year saw the formation of five prominent mills in Kerala such as

Trivandrum Spinning Mills at Trivandrum, GTN Textiles at Aluva , Kottayam Textiles

at Kottayam, Prabhuram Mills at Chengannur, Alappuzha and Precot Mills at Palakkad.

Kerala Lekshmi Mills in 1961, Kerala Spinners in 1964 and Kitex Ltd in 1975 were the

other prominent mills formed in Kerala between 1960’s and 1980’s. But the period also

saw some well-known mills going into oblivion. Some of them are Travancore Textiles

at Trivandrum, Lekshmi Textiles at Trivandrum, Cochin Mahalakshmi Mills at Trichur,

Ceylon House Textiles at Calicut, Kerala Textiles at Kallai, Raja Rajeshwari Mills at

Azhikode, Premier Hosiery at Calicut, and Aysha Hosiery at Talassery. Before 1972

all the textile mills in Kerala were under private management and as many of these

mills were going through a precarious condition, a government authority was needed to

take over these private mills and sustain them in the industrial system of Kerala. As a

result in 1972 the Kerala State Textile Corporation (KSTC) was formed and initially

took over the management of three mills namely the Malabar Spinning and Weaving

Mills, Kottayam Textiles Ltd, and Prabhuram Mills Ltd. In 1987 the Corporation on its

own started the Edarikode Textiles. In 2011, Sitaram Textiles and Trivandrum Spinning

Mills also came under its authority. In addition to the takeovers of KSTC five private

mills were nationalized and taken over by National Textile Corporation (NTC) in 1974

considering the sick condition of the mills under the private management.

In 1977 the first textile mill in the cooperative sector was established at Kannur.

The mill which was registered on 17-12-1964 as Mayyil Weavers Cooperative Society

later began to operate in the public sector with Government of Kerala as the major

share holder in the name “ Kannur Cooperative Spinning Mill”. Later seven more mills

were established in the cooperative sector during 1979- 2006 at Quilon, Alleppey,

Malappuram, Kottayam and Thrissur with two each in Malappuram and Thrissur. At

present Government of Kerala is the largest share holder in five of the cooperative

mills. During 1990’s Patspin India Ltd, was the only mill to be formed in the private

sector at Kanjikode in 1991 and has the highest spindle capacity among the textile mills

in Kerala with 53,000 with most having a capacity of around 25,000. The period of

2009-2012 saw the addition of three more mills to the textile mill repository of Kerala.

1.4 Present scenario of the textile mill industry in Kerala

At present there exists in Kerala a total of 38 Non SSI textile mills in the

organized sector, excluding mills which are yet to complete their full scale operation

and mills which are to be permanently closed as per administrative reports, coming

under three categories, private sector mills, public sector mills and cooperative sector

mills and the list of mills exhibiting their employee strength and capacity utilization are

shown in appendix VII. The mill sector in Kerala at present providing direct

employment to about 20,000 hands constitutes about 2.12 % of the total spindle

capacity in India. It also contribute 1.49 % of the production of cotton yarns and 0.65 %

of cotton cloths in India. Kerala is ranked ninth among the textile mill states of India

and the details are given in appendix VIII. The average production of fabrics in the mill

sector in Kerala is 15.92 M.Sq.m to the national production of 1784 M.Sq.m.

Nature wise most of the textile mills at present in Kerala are engaged in

spinning only. Though some of the units are known as spinning and weaving mills, the

process of weaving has not been happening in these mills because of outdated

machinery. Some of the mills such as Malabar Spinning and Weaving Mills and

Cannanore Spinning and Weaving Mills are on the verge of reinstating their weaving

production. Though there are three composite mills in Kerala, two in the public sector

and one in private, processing of fabrics has not been happening for a long time now.

Sector wise there are seventeen private Non-SSI textile mills in Kerala and

these mills are mainly centered on the central and northern parts of Kerala covering

largely the districts of Ernakulum, Thrissur, Palakkad and Kozhikode. In the public

sector there are thirteen Non-SSI cotton textile mills which come under two divisions,

mills under National Textile Corporation (NTC) and mills under Kerala State Textile

Corporation (KSTC). There are five mills under NTC and seven mills under KSTC and

one about to be transferred to KSTC from KSIDC (Kerala State Industrial Development

Corporation). These mills are spread throughout Kerala. In Cooperative sector there are

eight Non SSI cotton textile mills and these mills are also spread through out Kerala.

At the present juncture it can be said that the textile mill industry in Kerala like

the overall manufacturing sector does not endorse a profitable equation and mills

involved in spinning and weaving are facing problems umpteen in number in all

sectors. High cost of raw material, low productivity, decreasing profits, lack of working

capital and high labour cost are only the tip of the ice-berg regarding the bottlenecks

faced by the mills in Kerala.

Scarcity of raw material is the biggest obstacle of the textile mills in Kerala. In

Kerala textile mill industry raw material accounts for about 35 % of the total production

and 50-60% of the total sales. Though Kerala is traditionally regarded as an agriculture

state, cotton known as “King of fibres” has never been a prominent member among its

cash crops. In Kerala cotton cultivation exists only on a minor scale in the district of

Palakkad where it was started around 40 years ago in the 1970-71 periods.

Table.1.1 Table.1.2

Area of cultivation and production Cotton consumption of textile mills in Kerala

Source; Kerala Statistics Dept,2011-12. Ministry of Textiles, Govt of India, 2010-11

The area of cultivation and production of cotton during 2010-11 showed an

alarming rate of decline of around 85 % from the previous period of 2000-2001. Pest

attacks, poor seed quality, high cost of labour and marketing constraints are reported to

be the reasons for the decline. At present production of cotton in Kerala is only 3%

of the requirement of the textile mills and because of this, raw cotton, particularly long

Period Area (In hectares)

Production ( In tones)

1970-71

1980-81

1990-91

2000-01

2010-11

7258

6223

10731

3847

501

7292

9847

17320

6209

732

Period In tonnes

Period In tonnes

1991-92 39871 2001-02 40144 1992-93 40673 2002-03 38338 1993-94 40167 2003-04 30621 1994-95 38678 2004-05 32882 1995-96 46544 2005-06 37783 1996-97 44549 2006-07 38306 1997-98 43398 2007-08 34137 1998-99 38856 2008-09 28848 1999-2000 37871 2009-10 31857

staple cotton has to be brought from states of Tamilnadu, Andrapradesh and Karnataka.

Highly oscillated production of raw cotton resulting in prices of high incertitude

combined with a predilection of farmers to export cotton often causes worries to the

mills in Kerala reliant on these regions. The intermittent crop falls in cotton cultivation

in these states has a defining impact on the mill production of states like Kerala who are

at the mercy of others. Since raw material procurement usurps such a large investment

the mills are not been able to cover it and garner profits. The Government through a

centralized purchase system has interfered in the procurement of raw material and

invested seven crore rupees for procuring cotton for the mills in public and cooperative

sector as well as handlooms, through a professionally constituted committee comprising

of RIAB, TEXFED and KSTC. From 2006 the committee has been monitoring the day-

today activities of these mills to turnaround the units in a big way enforcing financial as

well as technical discipline. Due to this system the raw material cost has been able to be

brought down significantly but in 2011-12 difficulties in the procurement of raw

material has resurfaced with cotton producers having a predilection towards exports due

to better returns. The rise in cotton prices clubbed with heavy logistic costs has made it

difficult for the private mills to procure cotton and they have not also been a beneficiary

part of the government scheme of procuring cotton at a subsidized rate.

Labour productivity has always been another worrying factor for the textile

mills in Kerala. According to the SITRA productive analysis a few years back the

labour productivity of the textile mills in South India as a whole was about 33.2 for

HOK ( the number of operative hours to produce 100 kg of yarn) and 3.45 for OHSAM

( number of operatives per thousand spindles) where as the SITRA standards were

24 for HOK and 2.77 for OHSAM. Many mills in Kerala were reportedly way below

the standard shown by the overall South Indian states. It ha been estimated that on an

average an Indian mill worker including Kerala only handles 380 spindles and 2 looms

as compared to 1,500-2,000 spindles and 30 looms in other major Asian countries.

If the productivity of an American worker is taken as 100, the corresponding figure for

U.K. is 51, for India only 13 and for Kerala even lower at 7-8. The productivity of the

mill workers in Kerala has been identified as one of the lowest among major textile mill

states in India. A variety of reasons ranging from lack of adequate training to absence

of motivational factors were attributed to the low productivity and reports from some of

the mills functioning systematically that the productivity of the workers has been on an

anticipated scale indirectly points finger at the accused reasons for the low productivity.

Personnel closely associated with the industry consider outdated machinery as

one of the significant problem of the textile mills in Kerala. In Kerala most of the

textile mills are working with old machinery except some of the public sector mills

which recently had updated their machinery. According to estimates by the Ministry of

Textiles, over 60 per cent of spindles in India including Kerala are more than 25 years

old. The automatic looms accounts less than 10 % of the total looms in the state. The

outdated machinery with lack of proper maintenance leading to low output and inferior

quality of goods has resulted in textile goods from Kerala not able to face competition

in the market. Many private sector units have been a casualty of this. In the case of

such units, most of them were started between 1960 and 1980 and because of their

financial incapability to update their machinery their profits have dipped and

subsequently they have gone into uncertain periods of lockouts or close downs.

According to SITRA also for the textile mills established after 1990, the disparity in

production per spindle is smaller compared to the older units but for some older units

who have updated their machinery the disparity has found to be lower in nature.

Increasing cost of labour has been another worrying factor for the textile mills

in Kerala. Wages and salaries are increasing with each passing year in the mill industry

uncompensated by labour productivity. Because of the rapid increase in wages and a

stagnant production it has been difficult for these mills to find profit from their output.

Estimates indicates that the wages and salaries have doubled in 2011-2012 period

compared to 2000-2001.In the 2000-2001 period the average wages of the mill workers

in Kerala was around Rs 150 per day but in 2010-10 period it had almost doubled to

around Rs 300. Demand for increase in wages has been a routine affair for most of the

mills in Kerala as evident from the strikes and remonstrations reported from the mills

throughout Kerala in demand of increase in compensation. These strikes and demand

for more wages has stalled the working of most of these mills for several man days and

this has resulted in companies finding it difficult to find the working capital to run the

mills. As a result these mills have gone into uncertain periods of lockout.

Textile mills especially in the private sector in many parts of Kerala are

becoming non operational or cutting down their operations due to the deficiency in

operating funds. Dues in wages and salaries and long term credits from banks and other

financial institutions are further dampening the daily operations of the textile mills.

Short term subsidies and other financial allocations from the government are not been

able to find a solution to the lack of working capital. Different committees on different

periods have identified it as a problem but have not been able to come up with

appropriate solutions. Increase in interest rate of loans in addition to the indifferent

attitude of banks and other financial institutions to offer further loans, absence of any

government schemes for the wavering of loans and other bad debts pending, these mills

are finding it difficult to restart their operations. In addition to lack of working capital

many textile mills in Kerala are facing acute shortage of power with frequent cuts in

electricity and load shedding affecting the industry badly. This has led to loss of man

hours, low production and loss in the mills. Many textile mills have large dues pending

with the Kerala State Electricity Board (KSEB) and the authorities are showing their

unwillingness to provide further electric power unless the clearance of previous dues.

Stiff competition from within and outside the state has been another dampening

factor for the textile mill industry in Kerala. The demand has been decreasing in mill

sector especially in processed cloths because of the powerloom sector operating in the

unorganized sector with the fact keeping in mind that processing of fabric is now rarely

happening in textile mills in Kerala. Powerloom sector with a low investment and

labour cost compared to mill sector has been able to satisfy the demand of the mass at

a relatively cheap rate and it has dented the demand of the mills. In addition to that the

textile mill products from Kerala are facing stiff competition in the national market

from Tamilnadu, Maharashtra and Gujarat whose goods are cheaper in rate and better

in quality. The policies of the Government such as control of price, distribution of yarn,

pattern of production, etc. has also diluted the mill sector. Under the National yarn

distribution scheme of 1972, the Government had made it obligatory on mills to supply

a certain percentage of its yarn production to the decentralized sector at reduced rates.

In the past, in the case of mills who were facing a situation akin to the present

one either the state government or the central government had interfered and took over

the mills. Many of the textile mills functioning now under KSTC and NTC in Kerala

were acquired as a result of such occurrences. The Government authorities on take over

of the mills had either implemented a voluntary retirement scheme for the employees or

had absorbed them into the modernized units depending on their age and experience.

Many mills under lockout in the state are hoping for such a turn of fortune.

But inspite of all these problems it would not be uncalled for to say that, textile

mills in Kerala if given the right purpose and direction, has a rich future but

immediately needs a strong present. The initial sparks of a strong present has been

witnessed in the recent past and it is hoped by all its dependents that the scenario

continues and the industry strengthens its future in the industrial map of Kerala.

The present status of public sector mills under KSTC is tilted towards a positive

scale. The seven textile mills under KSTC have now recovered from the heavy losses.

Modernization and expansion programmes have been completed by many mills and for

the rest of them, modernization programmes are expected to be completed by the end of

2014. The latest addition to KSTC, the Komalapuram Mills, a take over of Kerala

Spinners Pvt Ltd, is yet to initiate its production using open end rotors. Two other mills

also under the authority of KSTC, the Malabar Spinning and Weaving Mills and

Trivandrum Spinning Mill which had been closed for more than a decade were

revamped and bought into a live position in the recent past. Some of the mills have also

reinstated machinery for the process of weaving which had been stalled for a number of

years. Two new mills, Uduma Open End Spinning Mill and Hitech Spinning Mill at

Pinarayi were also established in the public sector under KSTC. Of the five mills under

NTC in Kerala, Vijayamohini Mills in Thiruvanthapuram and Kerala Lekshmi Mills in

Thrissur have recovered from their past heavy losses. The other two units Alagappa

Mills and Cannanore Spinning and Weaving Mills are expected to recover from their

heavy burden of losses by 2014. But Parvathi Mills, a composite mill in Kollam and

one of the earliest in India, under NTC has been under lockout since 2008.

In the case of cooperative textile mills in Kerala, a brace of mills namely the

Alleppey Cooperative Spinning Mill and Priyadarshini Cooperative Spinning Mill have

increased their spindle capacity in recent years. The government of Kerala in 2011 had

announced a modernization programme for the rest of the cooperative mills. All the

mills in the cooperative sector have envisaged plans with an outlook for a positive

reorientation. The authorities in some of the private sector have also planned

reorientation programmes to revamp their sick units around the 2012-2014 periods but

are in eager anticipation of a helping hand from the government to do so. Therefore

with a combined positive approach from the government authorities, the mill

management and the employees, the industry has a spate of growth in its hands.

Kerala is generally considered as a rising consumer economy and does not

produce what it consumes and in the case of cotton textiles the per capita consumption

of woven cotton fabrics in Kerala is constant with the national average of 16.2 meters.

The broad consumerism in Kerala in terms of textiles is revealed by the fact that there

is an astonishing 5.5 lakh textile shops in Kerala.113 About 80 % of this outlay is met

from outside the state and so there exists a considerable domestic market domain which

could be effectively tapped if the demand is met with quality products at quality rates.

About 75 % of the textile mills in Kerala are spinning mills which produce

cotton yarns. Kerala has a considerable handloom sector of about 58,400 handlooms,

more or less and the handloom products in recent years have shown an improved

demand among the regional and national consumers as well as existing foreign demand.

113 Reports of Association of Textiles in Kerala, 2012 .

One of the major raw materials of the handloom industry is the cotton yarn which is the

final product of 75 % of the mills in Kerala and at present the handloom industry is

procuring a major volume of these raw material from outside the state. combined with

an increasing logistics rate. So a door of opportunity could be unlocked if the mills can

deliver the right quality of raw material in right quantities at the right time.

Textile mills in Kerala in recent periods have made efforts to foray into

diversified areas with the authorities attempting something new but viable in terms

of commercialization. Malappuram Cooperative Spinning Mill has envisaged a project

for making cotton bandages and therapeutic materials which is a kind of pioneering

attempt in Kerala. Such innovative and viable diversification could act as an inspiration

to the other textile mill units to enter into commercially viable diversified areas which

would act as an aid in increasing their earnings.

Textile mills in Kerala have never been a strong contender in the export market

as compared to some of the other mill states in India. Recently Patspin India Ltd

promoted by the GTN group operating in the private sector has started a 100 % export

oriented unit focusing on tapping the foreign demand. The authorities of the other

textile mills could make similar attempts on tapping the foreign demand by focusing on

export of their quality driven products.

The above discussions justify that though the textile mill industry in Kerala is

facing numerous problems there are also prospects of redemption and resuscitation. As

widely known Kerala is a growing consumer state inhabiting around 30 million

potential consumers and textile production is hardly been happening in Kerala with a

major share of the demand met from outside the state and therefore a viable textile mill

industry can be considered a need of the hour for the industrial sector of the state. The

textile mill industry inspite of the heavy mechanical orientation are still dependent on

the productivity of its labour force and therefore a theoretical perspective about the

concept of Human Resource Management in the textile mill industry of Kerala in the

succeeding chapter is found relevant for the study.