International Journal of Commerce and Management Research

Authors
Dr. R Prema, Dr. K Subramaniam

Abstract
Coimbatore, the hub of textile spinning and weaving mills is known as Manchester of South India. Coimbatore district houses a large number of small, medium and large textile mills. Family business, investment potential and experience of promoters in the textile sector are the most influencing factors to set up small scale spinning mills in the district. Spinning is the conversion of fibers into yarn. Spinning is the foundation process and all the subsequent value additions i.e., weaving, knitting, processing, garments and made-ups depend upon it. A substantial part of the capacity of the spinning mills in and around the city, which manufacture yarn, remains idle. Small scale spinning industry is facing both short-term and long-term problems. Former includes problems of fluctuating prices and shortage of raw materials, liquidity problems due to poor sales and accumulation of huge stocks due to deprived demand in the market. The long term problems of the small scale spinning industry include the slow pace of modernization, outdated technology resulting into low productivity, high cost of production, low profitability and in­creasing sickness of mills. The study has been contemplated to make a critical appraisal of the industry in terms of selected functional perspectives such as raw material, production, finance, marketing, and personnel issues so as to reveal the current status of the small scale spinning mills in the district and to offer suggestions towards improving the status of the industry. To meet the global competition technological developments are aimed with regard to raising productivity, improving quality and control, making manufacturing more environmental friendly to develop innovative products. Government policies and availability of incentive package comprising investment incentives, fiscal incentives, availability of export finance, skilled labour and moderate demand growth are reviewed to strengthen the spinning mills.