Textile City Lacks Service Centers

Located on the banks of Noyyal river, Tirupur is situated in the southern state of Tamil Nadu. Also known as the 'textile city', Tirupur is an important trade center and the 'knitwear capital' of India. It has gained universal recognition as the leading source of hosiery, knitted garments, casual wear and sportswear. As of 2005, when Tirupur was a part of Coimbatore district, Coimbatore was the highest revenue earning district in Tamil Nadu. Some of the world's largest retailers including C&A, Walmart, Primark, Polo Ralph Lauren, Diesel, ARMY, Tommy Hilfiger, FILA, Reebok, etc, import textiles items and clothing from Tirupur.

Apart from the thriving textile industry, Tirupur also has a blooming IT industry. The city has around 150 channel partners who cater to different verticals; the major growth verticals being SOHO and SMB segments. According to P Shanmugam, owner, Aimm Computer Consultancy, SOHO and education segments are the primary growth verticals of the city. Highlighting the current IT scenario of the city, Arunagiri, CEO, Softlink said, "Every year in the month of May, the business is slow, but after that it starts improving. Everyone says sales are going down but I don't think so." While Shanmugam is of the view that business is average presently. "The economy is dull. Home and education segments are doing good while corporate business is less." S Jayakumar, CEO, Mirror Computer said, "Business is slowly picking up. We see an increase in sales on a q-o-q basis."

While Dell and Lenovo emerged as the most preferred brands, laptops emerged as the hottest sold product. Talking about the super-active IT association of the region-Tirupur Information Technology Association (TITA), Shanmugam said, "TITA is very active in the region. It has 114 registered members. They conduct meeting every month. They are organizing an expo this weekend." Echoing similar sentiments, Arunagiri said, "TITA is very active in the region. It keeps on organizing meetings and conducting events every now and then. We are also participating in the upcoming expo."

Tirupur being an upcountry market has always faced stiff competition from Coimbatore. The city faces lots of problems related to after-sales service as most of the service centers are situated in Coimbatore. Talking about the vendor-dealer issues prevailing in the region, Shanmugam said, "We lack service centers in the region. DOA issues are not taken care of properly. Service issues are also not addressed properly." However while depicting a positive future path, he said, "I predict there will be a 10-12% growth in the market in the coming few months." Jayakumar added, "Market is expanding and I am expecting a 30-40% growth in coming times. Some markets are really growing; the crux is to tap those thriving market."

Market Name: Tirupur

Market Location: Tamil Nadu

Surrounding Markets: Coimbatore and Erode

Computer Association: Tirupur Information Technology Association (TITA)

Prominent Dealers: Aartech Company, Aimm Computer Consultancy, Jyothi Agencies, Mirror Computer, Phoenix Infoways, Softlink, Tech Media

Business Verticals: SOHO

Number of Active Dealers: 120

Interview 1: Arunagiri, CEO, Softlink

How has the market been in the last 2 months?

Everyone says sales are going down but I don't think so. Market is improving currently.

Do you have any computer association in Tirupur? How active is it in the region?

TITA is very active in the region. It is organizing an expo this week, wherein we are also participating.

What are your market predictions for this year?

I see the market improving. There wont be any problem in the coming times.

Interview 2:

P Shanmugam, owner, Aimm Computer Consultancy

What are the brands in the city?

Dell, Lenovo, Sony.

What are the major problems you face with your vendors?

We lack service centers in the region. DOA issues are not taken care of properly. Service issues are also not addressed properly.

What would be the approximate annual turnover of the market?

100 crore approximately.

Interview 3:

S Jayakumar, CEO, Mirror Computer

Which is the primary growth vertical in Tirupur?

SOHO

What are the brands in the city?

Lenovo.

What are your market predictions for this year?

Market is expanding and I am expecting a 30-40% growth in coming times. Some markets are really growing; the crux is to tap those thriving market.